Startups have to compete with other small businesses as well as established brands. And it’s harder to compete with large companies because they have more power and money to help them stay at the top. For instance, research shows that in 2017, large companies spent an average of $330 million on Research and Development, while small companies spent an average of $6 million. Competing with giant corporations with a bigger budget can be quite difficult for a startup; however, there are several methods you can use to outsmart them. Here are some of them.
- Develop a Solid Digital Presence
Digital marketing will help your small business become visible to consumers. Most large corporations can afford to pay for traditional advertising, which can be quite expensive. However, digital advertising is the better alternative due to changes in consumer trends. To keep up with these trends, marketers in the U.S. increased their digital marketing spend by 14.3% in 2021. So, take advantage of digital platforms and spend money on ads and social media to reach more consumers.
- Provide Excellent Customer Service
To compete against big brands, you need a stellar reputation. One of the ways to build your reputation is by providing excellent customer service. 70% of consumers say that they support businesses that deliver great customer service. Once you build a solid relationship with your customers, they’ll be more loyal to your startup and buy products from you even if they are more expensive.
- Test Out Marketing Trends
Although big brands have a bigger marketing budget, you can use the resources you have to your advantage. Test out new trends before other corporations start using them and win more customers. To execute your ideas, you can seek funding from investors, a bank, or online lenders.
If you have equity in your vehicle, you can use it as collateral and apply for a title loan. Do a quick search for “title loans Los Angeles” or “title loans near me”. A short-term loan provides a financial boost to your startup and allows you to market it more.
- Listen to Customer Feedback
If you are a new entrepreneur, your business reputation is quite important. To improve the customer experience, use constructive customer feedback to improve your business. You can even reach out to loyal customers and ask for feedback on how to make their experience much better. By doing this, they will feel more appreciated. This also sets you apart from the big brands.
- Create a Loyalty Program
75% of customers prefer dealing with companies that offer them rewards. You can create a loyalty program for your startup to motivate customers to come back and shop. For instance, you can discount some of the products you sell. This is a great strategy that will enable you to compete with big brands and increase your revenue.
Big brands can be hard to compete with because of their financial muscle. However, you can find ways to make your business stand out even if it is still small. These tips will guide you in building a startup that competes with the giants.