Strategies for Competitive Advantage in Small Business

Before competitive advantage strategies can be launched, you must consider the needs of your "buying customers" (i.e. Those who pay for your products and services) and your "supplying customers" (i.e. your employees). If you work to keep both of these groups happy (and do not sacrifice one over the other), you will set the stage for weathering the economic storm and outpace the competition. The reason is simple. When you treat your employees as though they were gold, you will ease the stress and worry that they feel during these economic times and they will perform better. They will be better able (and more willing) to implement "above and beyond" strategies for retaining your buying customers.

Here are some strategies that small businesses should implement by enlisting the help of their employees:

Start by developing customer loyalty campaigns. This is easy to do if you have an email list. You can create downloadable coupons, preferred customer sales and special events. Anything that you do that shows appreciation, even if it is low cost, will be seen as doing more than expected. Employees need to extend this appreciation to their regular interactions with customers. This will be more natural when genuine good will exists within your business.

Educate your customers by giving them product reviews (and maybe even a fair assessment of your competitors...as long as your strengths remain obvious). Be candid and transparent about your own products and services. Your honesty will be appreciated and this will increase customer loyalty.

Being willing and able to admit mistakes are a natural offshoot of always being honest with customers. Let's face it... mistakes happen. It's just one of those inevitable things that must be dealt with...and being open about it is a sure way to mitigate the pain for your customers and business alike.

Be sure to reassure your first time buyers with introductory prices and unconditional money back guarantees whenever possible. Even if you are barely making a profit, this first time around, it is worth having the opportunity to acquaint new customers with your business. The first experience they have with your business is critical. Introductory offers are a better way to attract customers than permanent price reductions. By letting your customers know that the price they are getting is introductory, you will not have to defend raising your prices later on.

Find reasons to update your customers. If you keep your updates informal, your customers will feel as though they are special and a part of your "family". Your business' website should be regularly updated with compelling content that will inspire your customers to always check back for the "latest". You can achieve this by creating opportunities for you customers or clients to give their opinions and ask questions. Website should provide easy and obvious ways to contact your business.

Let your customers know that you are an important part of their community as well. Your website and social media presences should be informing customers about the ways you are involved, the charities you support and any other community efforts you help. Your business can tell the world a lot about itself by the good deeds it does. And talking about these activities through social networks is not obnoxious (unless you are a braggart) in the way that overtly promoting your business' products and services is.

And of course, you will go a long way with your customers by responding quickly, efficiently and competently to their needs (and doing it in a respectful manner).

When your business adopts the attitude of treating your employees just as importantly as your patrons, there will be greater team work and a more efficient implementation of these and other strategies for competitive advantage.