by When it comes to businesses in the events and hospitality sectors there are various challenges posed, especially when you consider the effects of changing economies and culture. Consumers are going out less frequently and have access to less disposable income, so businesses need a competitive edge to stay on top.
There are multiple approaches you can take to give your business the competitive edge required to excel in the events and hospitality industries. In this article, we’re going to cover the top seven.
The Challenges
Before we uncover the top seven competitive advantages, it’s important to consider what the main challenges faced by events and hospitality businesses are, some of which being:
- Rising costs: Inflation, a cost of living crisis, and a stagnating economy, these factors have each influenced rising costs across all business expenses, causing increases to venue hire and rental, wage costs and cost of goods.
- Not getting enough customers: Expenses have gone up for businesses and consumers alike, leaving the average consumer with less disposable income to spend and higher costs when they choose to go out. This has the effect of meaning less customers footfall for businesses.
- A low customer lifetime value & loyalty: The amount of money a customer spends in your business during their lifetime is called customer lifetime value. The challenge is how to make a great customer experience so that become repeat customers.
- Staffing shortages & retention: High-quality and reliable staff members are hard to come by, and the best are in high-demand, so keeping your best staff members can be challenging.
Managing peak periods: During peak periods often influenced by seasonality and weather, businesses can find themselves understaffed or understocked to deal with the increase in customers.
Top Seven Competitive Advantages:
Having a competitive advantage is essential to stay ahead of your competition. Here’s our top seven.
1. Build a strong marketing strategy
A good marketing strategy can be an incredible competitive advantage for your business when done correctly. Raising awareness of your business helps with getting more customers into your venue or event.
It could be executing a content strategy for your website and social media pages or handing out promotional leaflets to people and businesses in your area. It doesn’t have to be complicated or expensive but having a strategy to generate awareness and interest in your business can set your business far apart from the competition.
2. Niche down
Niching down means serving less people by becoming more specific about who your business is for. It may seem counterintuitive, however, when you cater to everyone, you end up being adored by no one. It’s often much better to be specific about who your service is for and dedicate every decision in your business to cater to them. This can increase both the number of customers you have and the average customer lifetime value.
3. Offer a unique or superior experience
In the events and hospitality sectors, your product isn’t limited to the food & drink you’re providing, it covers the whole experience. A superior experience could be enabled by having exceptional music, service or guests. Offering a unique experience can give you the advantage in your industry.
4. Premium pricing
When considering pricing as a competitive advantage most people think of offering the cheapest prices to undercut competition. However, raising your prices can also be a competitive advantage. Many consumers are looking for an exclusive, luxury experience, which is reflected by premium prices. If you were to increase your prices you could deliver a premium experience, which would set you far apart from your competitors.
5. Build beneficial partnerships
Many businesses make the decision to partner with the cheapest partners available such low-quality suppliers and contractors, but this could be a costly mistake. When businesses use unreliable partners, they expose themselves to risks that could be expensive and damaging to their brand. For example, a delay in the delivery of equipment to set up stalls and stages at an event could cause a major disruption leading to the loss of revenue and reputation.
Fortunately, with some research it’s possible to find partners that are both reliable and cost-effective, like Speedy Freight a same day courier who have a 5.0 rating on
Trustpilot who are known for their speed and reliability. Partnering with the right partners across your business can enhance your service and give your business a competitive advantage.
6. Hiring great people
People are at the core of every business, especially in customer-facing industries, and how employees interact with customers matters. Having an exceptional manager could be the difference between getting mediocre results from staff and them reaching their full potential. A friendly and efficient waiter could be the difference between a satisfied customer and a loyal advocate that comes back regularly. Making great people and excellent customer service a priority in your business is one of the best ways to gain a competitive advantage.
7. Strategic networking
Strategically networking can enable you to establish connections that save you time, money, and resources. Spending the time to build relationships with other business owners and suppliers in your area can be greatly beneficial and lead to an increase in revenue. There’s also the potential to receive discounts and cost-savings through the strategic relationships you build through networking.
How Your Business Can Stay Competitive
Ultimately, staying competitive comes down to taking a different approach than your competitors. You don’t need to do all seven of the strategies mentioned but you can combine multiple strategies to give your business a greater competitive advantage. For example, you could choose to invest more time into marketing, networking, and hiring—all things that can be low-cost but can really set your business apart.
