Defend against a new competitor

If a competitor with a similar product is trying to take your existing customers, you need to act decisively. Here are three key strategies to defend your customer base and strengthen your position.

1. Deepen Customer Loyalty with Exclusivity & Value-Added Services

Your competitor may have a similar product, but your relationship with your customers is your strongest defense. Strengthen that connection by offering unique benefits they can’t easily match.

Tactics:

• Exclusive Content & Tools: Offer premium insights, templates, or tools that only your customers can access.
• Loyalty Incentives: Provide early access to new features, discounts, or referral bonuses to keep them engaged.
• Personalised Support: Competitors may offer a similar product, but a high-touch, personal service can make your customers feel valued and less likely to switch.

Execution:
Immediately reach out to your top customers and strengthen relationships. Ask them what they wish they had, and build it into your offering.

2. Strengthen Switching Barriers

Make it harder and less appealing for your customers to move to your competitor by embedding your product deeper into their workflow.

Tactics:

• Integrations: Ensure your solution integrates with their existing tools, making switching painful.
• Contracts & Subscriptions: Offer longer-term deals or renewal incentives (e.g., "Sign up for 12 months, get two months free").
• Data & Customisation Lock-in: If your service allows for personalised settings, custom reports, or proprietary data storage, emphasise how moving would create a disruption for them.

Execution:
Immediately review existing contracts and identify renewal opportunities. Communicate how moving away would be a hassle.

3. Attack Where Your Competitor is Weak

Identify the gaps in your competitor’s offering and use them to differentiate yourself. No two businesses are identical, and you can always find angles they can’t match.

Tactics:

• Position Your Unique Strengths: Do they lack personalised service? Are they missing a key feature? Push your advantages hard.
• Customer Testimonials & Case Studies: Show how your product has already helped existing customers succeed.
• Preemptive Outreach: If you suspect they are targeting specific customers, proactively engage those customers first to reaffirm your value.

Execution:
Immediately analyse your competitor’s offering and refine your messaging. Craft a clear positioning statement on why you are the better choice.

Final Thought: Play Offense, Not Just Defense

Instead of only defending, counterattack by targeting their customers. If they are aggressively going after your base, consider running a special offer specifically for businesses using their product—turn the tables on them.

Which of these strategies do you feel is the most urgent to act on today?