Two things businesses need to pay attention to in their industries are what their competition is doing and the customers. You may not always agree with your competitors but it is important to be aware of what changes they are making.
Every business runs into problems, some of the time more than we would like. It is important to figure out the root cause of the problem, not just the overhead view. It takes digging and thinking to get to the real problem. In many cases the root problem may not be the problem you thought you had.
Apply this same approach to competitor analysis, the action implemented by your counterparts may not make sense to you but the underlying strategy may end up helping you. We all want to get from point A to point B but we all have different approaches. Try to narrow down the exact action that your competitor is taking in order to generate interest.
On the other side of the spectrum analyze your customer base and observe their habits and tendencies. What words or images attract them? Are they more inclined to buy during promotional campaigns?
Knowing these things can really impact your sales figures. You want to get inside the head of your customer and your competition. You want to develop a strategy that address both and leaves you with more money in your bank account.
You don’t have to necessarily come up with a ground breaking new phenomenon to stand out in the industry. There are plenty of poorly executed ideas out there, just take them and make them better. On the other hand if you choose to create something new, feel free, innovation is always a good thing.
When taking the innovative approach remember testing is crucial to its success. You may have some failures and speed bumps along the way but as long as you address them and take something out of every situation, you really can’t lose.
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