Positioning to Win

What are smart businesses doing now to position themselves to win in the coming months? We’ve identified five factors most critical to maintaining growth in turbulent times.

1. Differentiate from Competitors. No matter what the economy, differentiation is the only way to avoid competing on price, and it’s the best way to grow your market share and stay profitable. In this economy, it’s doubly important. The companies that keep growing will be the ones that think hard about what new customer needs have been created as a result of the downturn, that stay informed on what competitors are offering, and that keep innovating new products and services to meet changing customer needs.
2. Keep Marketing. One great thing about the new economic environment is that many competitors have cut back on their advertising and PR budgets, laid off sales people, and otherwise pulled back marketing spending. It’s a unique opportunity not only secure low advertising rates, but to “break through the noise” so customers can hear your message.
3. Offer New Price Points. Smart companies offer a range of options for what and how the customer can buy. In this economy, devising new products and services, especially at the “low end” of the market can be a great way to win market share from less nimble competitors. Ask: what are your customers paying for that they really don’t need or value? What can you “take out” of your product or service to reduce cost and offer a new, attractive price point? How can you partner with customers to reduce joint costs?
4. Treat your best customers right. Be disciplined about identifying your most profitable and loyal customers. Those who “fit” with what you offer, who recognize and are willing to pay for what you offer, and who are enthusiastic about recommending you are the ones that you should place extra effort in delighting and retaining.
5. Keep your eyes on the goal. Staff cut backs mean employers are asking more of employees than ever before. Not only that, but bonuses, commissions and raises have been cut to the bone. Studies show that having a strong sense of shared purpose is a primary driver of job satisfaction and employee performance. Leaders should double up on efforts to communicate inspiring goals, to make sure each employee has the tools and skills to contribute, and to measure and celebrate progress.

No matter what your business, these five things can help you emerge from the downturn better than you went in. Be creative, listen to your customers, keep a winning attitude, and stay focused on the goal.