Today there are almost no industries with no competition. In the highly competitive environment companies have to consider many aspects of their business to survive.
Some companies focus on low price as their main competitive advantage. Now when consumers can easily browse internet for the cheapest offers, companies have to pay attention to their price policy more than ever. When you compete on price alone, you have to dramatically reduce costs. And at some points margins approach zero. E-commerce businesses also have to not only offer low prices but also offer free or low-cost shipping. This definitely does not help to develop your business.
When the price bottom is reached you realize that there should be something else to attract customers. And it is better to realize that before it is too late.
The second step is to offer better value for money. Better product quality may help you win more customers, but even if you sell the best product in the world, this does not guarantee you success.
53 percent of United Kingdom-based retailers surveyed for a recent Econsultancy report, said customer service and customer experience would be the primary way retail organizations will differentiate from competitors over the next five years. That means that price and product are not enough to win the competition race.
Customer experience is now one of the most important aspects of competition, and you need to clearly understand what customer service and customer experience mean.
According to Adam Richardson, a customer experience innovation strategist, “to be really successful on a long-term basis, customer experience needs to be seen as all these things, and more. It is the sum-totality of how customers engage with your company and brand, not just in a snapshot in time, but throughout the entire arc of being a customer.”
Focus on customer experience means that you care about every contact with your customers, no matter when, where and how they happen. Opposite to the price competition, customer service gives you endless opportunities to improve your competitive advantage.