Why should the client choose you !? 12 vectors of competitiveness
Why will the client work with your company? Will order it from you? Will pay you? If you are not a monopolist, the answers to these questions are the most important answers for your business. And it is these answers that determine the competitiveness of your business – the ability of a business to attract and retain a customer. The same questions can also be asked about your product or service: why, from a variety of options, will the client choose your product, buy it, or order your particular service?
The most disadvantageous answer and alternatives
In fact, there are only two answers: because you are cheaper or because you are better. The first answer is your own harm. Although this is the most common answer (or attempted answer), it is the worst answer for your business. Since the business is done for profit, and profit is the difference between price and cost, selling at a price lower than possible reduces profit. Is it possible with this answer to create and develop a successful business, to reach certain heights? Yes of course! A striking example is Walmart. But Walmart alone, and those who tried to follow in his footsteps – tens or hundreds of thousands … Therefore, let us look at the second answer: “because your company or your product / service is better.” A natural clarifying question arises: what exactly is better? Is it really better? Or is it just different? Is it really so much better that the client is willing to pay extra for this? If this answer option is selected, it is the level of response that determines the ability of a business to attract more customers. In this article I will try to structure the answer to the question “what exactly can be better?” And provide tools for you to analyze your company’s business and take some serious steps to ensure and develop the competitiveness of your business and product or service.
In fact, the answers are at least TWELVE. But in order to understand them, we “get into the head” of the client making the decision. Regardless of whether the client is an individual or legal entity, the decision is made by a specific person. This person has “scales” in his head with which he makes a decision. On one side of the scale is the Price, that is, what the customer pays, or what he spends, what he loses, what he gives, what he’s going to cooperate with your company, to purchase / consume / use your goods. We are talking about the acquisition price and the price of ownership or use / consumption. Moreover, this price does not always consist precisely in the amount of money. Moreover, the client must always pay for the purchase and use of not only money. Price-money, that is, what is written on the price tag or in the price list or in the quotation is just the surface part of the “price iceberg”.
In addition to the amount that the client pays you, it may require additional costs for delivery, storage, supplies, electricity, installation, training, etc., depending on what kind of product or service in question. For example, if it is a mobile phone – the cost of maintenance, voice and digital traffic, if the car – the cost of registration and insurance, gasoline, maintenance and repair, rubber, parking, fines. If this is a corporate training or seminar – the cost of the venue and conference services, travel and accommodation (sometimes), the salary of the participants for the time. If the loan – the cost of paperwork and insurance. If the equipment is the cost of delivery, installation, staff training, maintenance, warranty and post-warranty repairs, consumables, electricity. If furniture – delivery and assembly costs (if this is not included in the price). And so on … It is important to know the level and articles of additional costs of the client in the case of the purchase and use of your product, as well as when buying and using competitive products.
But the client still spends not only money. He also spends his time. For example, to get to your store or company. Or to get through to your company. To chat with you. Get the necessary information about the company and the product / service. Agree with you application. Agree with management and relevant services agreement. Fill out the forms. Choose. Execute documents. Pick up the goods. Get your service. Deliver and mount. Learn to use this product, get used to it (that is, reach the level of familiar comfortable use). Train your salespeople who will sell it. And so on … For this (and all other) component of the price, it is also necessary to know the level of customer costs when buying and using your product / service and when buying competitive or even substitute goods and services.
In addition to time, the client must spend certain efforts on the acquisition and use or consumption of your product / service.