A failing economy certainly
presents challenges to any small business. It could also provide opportunity
when competitors are forced to shut down because of tough times, leaving in
their wake customers that your business can bring into the fold.
If a competitor closes its
doors, consider the following tips to bolster your customer base and your
business:
1. Honor gift cards and
coupons of competitors. When businesses fail, customers who have gift cards for
that business' merchandise often lose their money. If a competitor goes under,
make a point of letting its customers know that you'll honor any gift cards and
coupons. In the short run it will cost you, but you may be gaining a long-term
customer.
2. Buy competitors' customer
lists. When businesses file for bankruptcy, they liquidate their assets so they
can pay off as many debts as possible. A competitor's customer list can provide
you with a priceless marketing vehicle since you would have access to people
who have already proven to be interested in your products or services. Approach
competitors as soon as you know they're going out of business to see if you can
strike a deal.
3. Make a direct appeal. If
you can gain access to a closing business' customer base, talk to those
customers directly, telling them that your business is ready to serve them.
While a direct mailer could be an effective way to do this if you have actual
customer addresses, don't rule out the display of posters or fliers in the
general vicinity of where those specific customers are likely to see them.
4. Ask competitors to refer
you. If a competitor that's closing its doors isn’t planning to open another
similar business, your business is no longer a threat. Talk to the owner about
sending customers your way.
5. Consider offering new
services. Are there products and services that a competitor offered its
customers that may appeal to your client base? Consider offering such services,
giving a competitor’s customers more of a reason to check your business out.
6. Ramp up advertising.
Loyal customers of the failing business have a void to fill and your business
may be the beneficiary, but those customers have to know you exist. Use the
opportunity to launch a new marketing blitz, introducing those customers to
your products and services.
7. Consider hiring. Consider
recruiting staff from your failed competitor, as they will not only offer experience
to your business, but may bring with them loyal customers, as well.
- Source: Tire Review
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