Customer and Competition for Your Business/Product

Are you someone who is looking to build your own empire? Then this blog is for you!

Let’s say You have the best product in the market but how will you redefine it further and get the most value out of Your Product?

By Analyzing your Customer and Competition!

Let’s first start with the Customer. Because Customer is the King of the Business. You will grow if your Customer is happy using your Product! In this blog, I will help you understand your Customer and How and where you can make a difference.

PS: The details here written are after a detailed interview I did with some of the Business Owners and from the course(10K Women), I went through to understand customer behavior for Business!

Customer Value Proposition

“A customer value proposition is a business or marketing statement that describes why a customer should buy a product or use a service”

Before you begin analyzing your customers and competition, here is the key information that you must know:

1. Who are your customers?
2. What product or service do they want?
3. How much are they willing to pay? Here Product Pricing Plays a very important Role!
4. Who are your main competitors?
5. What are the differences between you and your competitors? (Your USP :D)

The long-term success of any business relies on its ability to understand and attract customers. And For this, you will have to have a very clear understanding of what your customer wants and how your Product is addressing their pain points.

As a business owner, you will already know a great deal about your customers ( if you don’t you need to). There are many ways to gather useful information about your customers. These include the following:

• Reviewing existing research reports about your sector. This includes industry-level information and may include information about customers.
• Collecting data aimed at finding out more about your customers through post-purchase surveys.
• Checking what your customers post about your products online, including on review websites and social media.
• Surveying your customers in more detail through a market research agency.
• Talking to your existing Customer and asking what value you can further add.

Business owners will often split their customers into three simple categories: current customers, potential customers, and unforeseen customers. You must brainstorm on how you can add value to all these three segments of customers! Now that depends on your business and Business strategy.

1. Current Customers

These are customers who have previously bought your product or service. You may already have some information about them, such as:

• the product or service they purchased from you in the past
• their reasons for making the purchase
• the purchase features they valued the most.

To ensure that you continue to meet your current customers’ needs, you need to further develop your understanding of them. If customers are unhappy with a product or service, it is easier than ever before for them to switch to a new provider, or try a different product. This can be a challenge for those trying to retain their current customers.

If your business is facing changes in the market or sector, you may need to consider how to best keep your existing customers by understanding their needs. Here you can retain your customer base by doing so.

2. Potential customers

Potential customers are interested in what you have to offer (or they could be interested if it is appropriately communicated) but have not yet made a purchase. You may have targeted them in the past, but as you expand or change your offering, the demographic of this group may also change.

If you understand the factors that these potential customers value most, it will help you adjust your offering (or the way that you communicate it) to successfully convert them into customers. Although current customers ensure the stability of your business, new customers are your engine for growth.

3. Unforeseen customers

Unforeseen customers are potential buyers who have not previously purchased your product or service but suddenly become customers. This may be because they have found an innovative use for your product or service that you did not anticipate. For example, you may be selling clothing that targets gym-going customers, but find that people who buy your products also use it as loungewear. This could open a whole new segment of customers for your business.

It may not always be easy to identify the potential of unexpected customers. Sometimes it might just be a one-off purchase by an individual customer, while at other times it might be indicative of a larger opportunity to attract a new group of buyers. As you grow, you should remain open to innovative uses of your product or service, and consider broad awareness among non-target groups, to encourage unexpected customers for your offering.

If you develop a deep understanding of your current and future customers, and the factors they value most, you will be able to ensure that the way you communicate your offering focuses on their needs. This will help you gain and retain customers, and ensure the success of your new growth opportunity.

Segmenting your customers and its Benefits

As a Business/Product owner it is vital to experiment with your Product on different customer groups and see how they respond to your product.

Here is How you can group your customers in different segments and perform Analysis and hack your Growth!

The Customer-Buying Process

You should consider each stage carefully in turn, to ensure that the process is as efficient as possible and provides the best experience for your target customers at every buying Process.

1. Pre-purchase

In this stage, the customer completes the following steps to identify the purchase they wish to make:

i. Identifies a need

The customer has to recognize a problem they need to solve, and desire for a product or service.

ii. Gathers information

The customer then gathers information about the options available to them. For example, they may search online or ask friends for recommendations. In business-to-business (B2B) markets, the customer may send out a request for proposals from potential providers.

iii. Evaluates the possibilities

The customer then evaluates the information according to their problem or need, and personal priorities.

The majority of marketing and sales activities are focused on the pre-purchase stage of the CBP. However, you should also pay close attention to the other stages to ensure the customer completes the purchase and is satisfied with your product or service.

2. Purchase

It is possible to lose customers at this stage if the purchase process is complicated or causes problems for the customer.

During the purchase phase, it is important to consider the following:

• How you could simplify the payment process for your customers.
• How technology could make it easier to purchase your product or service.
• The payment terms offered to customers, particularly for B2B offerings.
• User Experience if your Product is Tech-Based.

3. Delivery and use

This stage can look very different depending on your business’s particular offering. Consider the following:

• Is your delivery process simple and predictable?
• If you provide services related to delivery (such as installation), how efficient are your associated processes and documentation?
• How can you ensure a positive customer experience when the purchase and delivery phases are simultaneous (for example, in restaurants)?
• For service offerings with long contracts, the delivery and use stage may be long and involve multiple points of contact with the customer. How can you make the best use of these to ensure satisfaction and deliver value?

4. Post-purchase evaluation

The customer now has the opportunity to re-evaluate their choice if they are not satisfied with the product or service, or if they are unhappy with the customer experience they have received.

If the customer is happy with their decision, they can benefit your business by:

• becoming a repeat customer
• posting an online review
• referring other customers to your business.

However, unhappy customers could harm your success by:

• returning the product or canceling the service
• making no further purchases
• sharing poor experiences and discouraging others from purchasing the product or service.

You should engage with your customers following their purchase (for example, by sending follow-up surveys or emails) to ensure that their perceptions of your business remain positive.

Evaluate the experiences of your target customer segments in the CBP. You will then be able to identify stages that offer clear value to your customers, and stages that require further development as you grow.

Give your Customer Something Extra and Stand Apart from Competition and you need to Plan this!

How do you make a difference for your customers? Comment below!