1. People know your name but never address you by it first.
You have a memory problem if, when you show a prospect your logo they say “Oh yeah, I’ve heard of you”, but wouldn’t include your company if you asked them to name the top firms in your industry.
- A warning sign is that while people access your website through advertisements, very few enter your company name directly into Google or arrive via word-of-mouth.
- The business impact is that you have to keep paying for ad clicks since your brand doesn’t make a lasting impression.
2. The cost of acquiring new customers increases each quarter.
Paid ads are useful for generating a quick supply of leads, but it is risky to base your entire strategy on them. If your cost of acquiring a customer is increasing at the same time as your profit margins are narrowing, then customers will not be coming to you voluntarily.
- The warning sign is that although your advertising costs rise month by month, the number of direct inquiries and customer referrals remains the same.
- The business impact is that rather than develop a reputation to draw in free, organic leads, you are charging high prices for customers’ attention.
3. Opposition to price cuts
If potential customers immediately compare your business with that of your competitors on the basis of price alone, then they see your company as a commodity; it is companies that leave no lasting impression that compete by offering discounts, while those that are memorable ask for premium prices.
- There’s a warning sign in the form of deals that take months to close, prospects who continually request discounts, and bids being lost to cheaper alternatives.
- The effect on the business is that as profit margins decrease, so does the money available for reinvestment in the growth of the business.
4. Buyers will not link you with particular problems.
People do not look for “innovative solutions”. Instead, they look for answers to their current problems. For instance, they might type in “I need an accountant who understands construction” or “Our network has crashed, and we need assistance today.” If your message doesn’t directly address an immediate need, then buyers will ignore you.
- A warning sign is that your marketing makes use of generic buzzwords such as “industry-leading service” or “quality results,” buzzwords which your competitors also employ.
- The effect on business is that those competitors who address specific problems directly win over the client before you get the opportunity to make your pitch.
5. You are just as alike in appearance and voice as your competitors.
If you removed your logo and company name from your website and brochures, could customers tell it was your business? If your materials are exactly the same as those of three other companies in the city, your business will be invisible.
- A warning sign is when your materials use the same industry buzzwords and stock photos as everyone else in your field.
- The business impact is that you end up spending money on interest, which ultimately benefits your competitors because customers can’t tell the difference.
The Fix: How to Become the First Choice
If you want to stop losing market share, then you have to ensure that your company is the one that people choose by default when they have a problem. Here’s how you can correct the situation:
- Look at the specific triggers: instead of talking in general terms, state precisely the problem that you solve, so that whenever a customer has that headache, your business immediately occurs to them.
- Ensure visual and verbal consistency: choose a clear style, a definite message, and a consistent appearance. Carry this approach through all interactions so that potential buyers can recognize your brand at once.
- Turn Recognition into Revenue: Don’t split “brand awareness” and “sales” into separate buckets. Every piece of marketing should make your business instantly recognizable and make it easy for buyers to take the next step. A quick check: Is your business designed with scalability in mind?ale?
Ask your executive team these three straightforward questions: Is our company the first name a customer thinks of when they are going through a crisis today? of?
- What is the one thing that we provide which no competitor in our market can say that they offer?
- Are customer referrals increasing on their own, or are we relying entirely on advertising spend?
If answering these questions uncovers gaps in your pipeline, it is time to adjust your strategy.
Partner with SHELTEN LLC
At SHELTEN LLC, we help growth-minded business leaders turn market confusion into steady revenue growth. Based in the United States, we help businesses build lasting market position so sales come easier and acquisition costs stay down.
Ready to evaluate your market position? Contact SHELTEN LLC today to schedule a Strategy Session.
