Gaining a competitive advantage means getting everyone on board to articulate and drive the company's vision, clearly and succinctly. How can you move your business up and to the right, separating your services or products from the rest? Don't just embrace the inevitable changes of your industry—create it.
What Does Competitive Advantage Mean for CMOs?
According to Investopedia, competitive advantage is simply "an advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition."
CMOs and marketers are not only responsible for staying afloat in a constantly evolving market; they must also generate greater value as a company. The more sustainable the competitive advantage--which gives organizations an edge over its rivals--the stronger the brand loyalty.
Fight the generic competitive strategies and consider how culture and customer experience can set your company apart.
Two Types of Competitive Advantages
Comparative advantage: The ability of a company to generate products or services at a lower opportunity cost than other companies, seizing the opportunity to sell at a lower price than competitors and thus realizing stronger sales margins.
Differential advantage: A perk or set of perks that customers value because they believe they cannot gain the benefit anywhere else. These unique offerings, making up a differential advantage, means customers are often willing to pay a premium and/or purchase more.
How to Gain a Competitive Advantage
1. Share your purpose. To achieve a competitive advantage and unlock your business's potential, you should consider turning your plan or strategy into a movement. Rallying behind a cause or mission your whole team--and customers--believe in will not only allow you to attract top tier talent, it will also attract potential customers to take ownership of your vision.
2. Adopt the agile advantage. Marketers have to innovate and respond to market disruptions right away in order to gain a competitive advantage. Agile for Marketing (A4M™) "drives long-term marketing strategies with short-term, customer-focused iterative projects that improve responsiveness and relevance. It allows for faster creative, more testing, smarter improvements and better results.”
3. Transform CX from within. Top-down approaches to customer experience are no longer effective. Customer marketing plans that realign company goals internally, through cross-functional groups and creative collaboration, are much more equipped to achieve a competitive edge.
At CMG, our pragmatic and creative marketing practitioners are ready to help you unleash your market potential and move your business up and to the right. Through our agile approach and methodologies, we partner with you and your team to reach data-driven, focused results. At CMG, we're the architects of your next big idea. Call us today to realize your potential.