In today’s business world, acquiring customers from competitors to expand sales poses significant challenges and requires careful consideration. Some of the top companies in the Fortune 500 list have faced these challenges and applied unique strategies to overcome them.
One of the critical challenges is entering into a competitive battle to capture customers from rivals. Carelessness in this competition can lead to powerful counterattacks from competitors, causing substantial losses for both parties. A real-life example is the battery market, where Duracell and Energizer engaged in fierce battles, causing customers to perceive the brands as interchangeable and negatively impacting the industry’s profitability.
Understanding the level of consumer loyalty is a key factor in the process of winning over customers from competitors. There are three types of loyalty: heart loyalty, head loyalty, and habit loyalty. Heart loyalty connects with the brand through emotions, becoming part of their identity, and converting customers at this level is a challenge. In contrast, head loyalty requires decisions based on logic, data comparison, and a competitive advantage. Finally, habit loyalty involves habitual shoppers who make purchases without much thought. Changing this habit requires creating a breakthrough.
Leading companies such as Apple and Starbucks have successfully applied these strategies. Identifying not only the customers of competitors but also understanding their loyalty levels helps create targeted and effective conversion strategies. However, it’s essential to note that winning over a competitor’s customers is not always a straightforward decision; it demands careful consideration and in-depth knowledge of the competitor and the market.
In conclusion, the strategy of acquiring customers from competitors requires intelligence and flexibility. Applying lessons from top companies is the key to overcoming these challenges and opening up new opportunities in an increasingly competitive market.
Author Ho Duc Duy © All rights reserved.
