4 Ways to Outflank, Outsell, And Demolish Your Retail Competitors By Frank Lucer At Isnare.com Ezine Articles

The economy continues to soften and credit markets remain tightly closed. For consumers, the specter of potential unemployment is pervasive. For independent retailers, the battle for consumers' spendable dollars has never been more fierce. The main challenge for small retailers is to attract the buying public and motivate them to purchase products. While lowering prices is tempting, doing so reduces perceived value. Plus, it can plunge a small merchant into a debilitating price war.

Fortunately, there are effective strategies that you can use to survive and thrive in the current tumultuous economic climate. I'll give you 4 ways to outflank, outsell, and demolish your competition.

#1 - Increase Your Advertise

A slowing economy causes consumers to tighten their purse strings. They're less likely to make impulse buying decisions regarding products that are considered luxuries. This is the time to increase your advertising efforts. While it may seem counterintuitive to allocate more money to advertising as people grow less likely to buy, there's a good reason for doing so.

Chances are, your competitors have cut back their advertising efforts in order to preserve their marketing budget. By increasing your own marketing efforts, you'll gain more exposure in their absence. Remember, there are people who are willing to buy your products. Many of them - including your best customers - need a simple reminder to do so. Advertise and pull them back into your store.

#2 - Target Your Best Customers

You've probably heard that it's far more expensive to cultivate a new customer than it is to sell to your existing customers. Ideally, you've taken the time to build a database that includes a record of each customer's past purchases. Identify the top 20% of your list based upon sales volume over the past 12 months. Then, send a promotional mailer offering them an exclusive "Top Tier Customer" discount. Not only will the mailer keep your name in front of them, but it will also motivate them to visit your store.

#3 - Perform Competitive Reconnaissance

Whether your main competitor is the local merchant down the street or the new big box retailer trying to encroach upon your territory, you need to know your enemy. Just as every military strategist understands the value of uncovering his enemies' strengths and weaknesses, you must identify them in your competition. Get on their mailing list. Study their catalogs and marketing collateral. Watch their commercials. That way, you'll be able to counter their selling points by exposing their limitations.

#4 - Create A Loyalty Program

Yogurt shops, restaurants, car detailers, and tanning salons have recognized one of the key elements in maintaining consistent sales: loyalty programs. By creating a platform on which your current customers enjoy a discount based upon their consistent buying activity, you can motivate them to buy more often. For example, a coffee shop owner threatened by a local Starbucks might give customers a "Buy 10, Get 1 Free" card. Combined with a personal relationship, this type of promotion can encourage customer loyalty and consistent sales.

Outmaneuvering Your Competition

Your goal is not merely to survive during the current economic downturn. The objective is to win an ever-increasing portion of your target market. That includes encouraging your existing customers to spend more money buying your products. It also includes attracting new customers away from your competitors. It's worth noting that there is plenty of discretionary income during an economic crisis. By advertising, marketing to your best customers, watching your competitors, and creating a loyalty program, you can attract a larger portion of that discretionary income. That's how you demolish your competition.

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