Just about every business promises great customer service, good pricing, quality products, and other generalizations that may not translate into important ways to grow your business. Becoming the company that customers turn to as the most knowledgeable and reliable can create a competitive advantage for achieving your goals because it distinguishes you from the rest of your competitors. Even though you are a small business, you may be the “go-to” company in your community or online, or both. Here’s why working toward this status of the “go-to” company is important as a way to grow your business.
Overview
Many of the big corporations we know are the standouts in their industry. For example, Apple commands unmatched brand devotion because it offers premium design. Proctor & Gamble (P&G) is the top ranked company of consumer goods because its everyday products, including Tide, Crest, Pampers, Charmin, Gillette, and Pepto-Bismol, are trusted. You may not have a produce or service that commands nationwide trust, but you can become the first choice in your location. Here’s why it’s important to do so:
Trust
Becoming the “go-to” company means you become the first choice among customers for the products or services you sell. It demonstrates that you have been credible, reliable, and knowledgeable.
Having trust shortens the sales cycle; you don’t have to convince customers of your brand.
Customer loyalty
Customers who view you as the go-to company may automatically turn to you for the goods or services you offer and refrain from shopping around. They become repeat customers, which is less costly than finding new ones. And they also become your company ambassadors, telling others about you (free marketing).
Pricing power
“Go-to” companies can charge premium prices because they aren’t competing on cost alone. These companies don’t have to offer deep discounts and can raise prices when necessary without fear of losing customers (or at least not too many of them).
Reduced marketing costs
Reputation has a way of selling a company. Getting one as the “go-to” company means less money has to be spent in marketing because customers know the brand. You don’t have to convince them to buy.
Expansion possibilities
Once you’ve established yourself as the “go-to” company, it’s easier to introduce new products or services. Customers are more willing to try your new offerings. They may not all succeed, but you’re less likely to turn off customers for the new things as long as they stay satisfied with your core business.
It may also be possible to enter new markets or open new locations. The brand is there, and customers may very well trust these new endeavors.
Final thought
Why become a “go-to” company is clear. How to do it is quite another thing. You need to define your niche—your unique value—and position yourself to deliver the right message to establish yourself as a go-to company. This can be done by gaining recognition through blog posts and social media. Then, of course, you have to follow through by creating memorable customer experiences and managing communication. Trust + Visibility + Consistency = Go-To Status.
Read more about important marketing strategies in this list of blogs here.
