Early in my career I managed a retail store in a small town. There were only two such stores in town – mine and the competitor’s, and we worked just down the street from each other. For the most part, we each had our own customers but once in a while there was cross-over. His customers would come to my store and mine would go to his. Sometimes I’d see long-time customers of mine at his store and it was dismaying, but I know the reverse is true as well.
Competition is good for business and it’s fun. But it can also be cut throat (even when you maintain a professional, legal approach to your competitiveness).
Although you don’t always know when a competitor is stealing your customers, sometimes you do. Here’s what to do if your competitors are stealing your customers.
NOTE: When I say “stealing” I don’t mean it in an illegal way. There are rules and laws that companies need to play by and I’m making the assumption that both you and your competitor are in fact remaining compliant. When I say “stealing” I mean that your customers are going to your competitors and those competitors are happily serving them.
So here’s what to do…
- First, decide if the customers are worth the effort. Some customers are not worth the effort. I recall one customer who threatened to go to the competition and it was welcome news to my ears because he bought from me so irregularly and was such a ridiculous amount of work that letting him go freed me up to serve more of my better customers.
- Build a relationship with your customers. Don’t just tell them that they’re important to you (which is what most businesses do), show your customers that they’re important to you by taking an interest in their lives. For professionals like real estate agents and financial advisors (and some other similar professions), I always recommend that you truly get to know your customers. Send them birthday cards and call them. Send them flowers on their anniversary. If they play on a sports league, go to their games and cheer them on. Don’t be a stalker but be a friend. Check out these 61 questions to strengthen your client relationships and build loyalty.
- Remind your customers of the value you provide. This is a huge complaint I have with a lot of companies (although if I were honest with myself I’d have to admit that I’m probably just as guilty of this). Once your customers are sold on purchasing from you, most businesses stop selling. But you have to continually “resell” to your existing customers and remind them why they’re buying from you. Otherwise they make the mistake of assuming that your competitor is exactly like you… and as soon as your competitor offers something cheaper, then loyalty is at risk.
- Wow your customers. Truly wow them by shocking them with how unbelievable your service is. (Hint: This is rarely done).
- Be proactive. Don’t wait for your customers to come to you. Go to them and help them see that they need to buy more of whatever you’re selling.
- Constantly ask your customers how you can help. You may find more ways to extend your own products or services but you might not… helping your customers might mean simply understanding what challenges they have in life and making introductions to others who can help them.
The worrisome truth is: Competitors are stealing your customers because you aren’t demonstrating the most important thing: That you are indispensable. Demonstrate that you’re indispensable and prove it over and over again and your competition will eat your dust.