Trending
While keeping an eye on competitors is important, a surprising number of businesses get bogged down trying to build a protective shield around their business to keep their competitors out.
This focus is misplaced. What leaders SHOULD be focused on is being obsessed with doing whatever they can to prevent loyal customers from leaving.
Here’s why focusing on building barriers to competitive entry is a bad idea:
- Everyone’s doing it: Building competitive barriers is a common tactic employed by most organizations, making it ineffective for any one of them seeking to gain a true advantage.
- Theory vs. Reality: These strategies are often complex and impractical for real-world businesses.
- Distraction City: While you’re busy building walls, your customers are most likely getting neglected.
- False Security: A determined competitor will always find a way in, making most barriers ineffective.
Instead of building barriers to competitive entry, cultivate a customer-centric approach and build barriers to CUSTOMER EXIT.
- Unmatched Value: Provide such incredible value that competitors can’t compete. Make them say, “it’s not worth the fight!”
- Know Your Tribe: Understand your ideal customer and cater directly to their wants and cravings.
- Constant Innovation: Keep your offerings fresh and exciting to prevent customer churn.
- Surprise and Delight: Go the extra mile to create unforgettable experiences for your customers.
The Grateful Dead said it best:
“You don’t want merely to be the best of the best. You want to be the ONLY ones who do what you do.”
By focusing on being customer obsessed, you create a loyalty so strong, your competition won’t stand a chance.
Related: Clear the Clutter: How to Eliminate Wasteful Business Activities