← all ideas

Going After Competitors' Clients

The idea

The idea is to leverage the fact that competitors might be losing clients due to poor performance, and to aggressively target those clients for your own business. This can be seen in the example where the founder scraped listings from poorly performing vacation rental management companies and reached out to the property owners. The idea is to identify companies in your industry that are underperforming or facing financial difficulties, and then to capitalize on their situation by offering better services or incentives to their clients. This approach can be risky and potentially unethical, but it demonstrates how a business can strategically take advantage of a competitor's misfortune.

Why it works

• By leveraging publicly available information, you can identify clients who are underperforming or struggling. This strategy allows you to target companies that are likely to have a need for your services, as they are already aware of their shortcomings.

• The use of publicly available data, such as listing profiles from vacation rental management companies, can be seen as ethically acceptable. However, the effectiveness of this approach depends on the trust and legality of the data source. It's essential to ensure that the data used is not confidential or proprietary.

• Cold outreach can be a potent strategy, especially when combined with a strategic approach. The founders mention that their fractional outbound department was successful in identifying and contacting property owners of poorly performing vacation rental properties. This method leverages a network of contacts and outreach to potential clients, suggesting that reaching out directly can yield positive results.

• The founders' experience indicates that when you have a product or service that is genuinely beneficial, the market will eventually recognize and reward it. The current company doesn't need to do marketing or sales for now, as people are coming to them, which is a clear indication of how their product is valued by the market.

The playbook

1. Identify Competitors' Weaknesses: Just as the founder identified the poorly performing vacation rental management companies, you should research your competitors and pinpoint their areas of weakness. This could be through publicly available information, client reviews, or direct engagement with these companies.

1. Execute a Strategic Outreach: Based on the founder’s experience, leveraging well-known resources like well-performing vacation rental management companies can be a successful strategy. Identify and reach out to the owners of these properties directly, offering them your services. Ensure your outreach is professional and tailored to their specific needs.

1. Utilize Social Media for Lead Generation: The founder noted that their Instagram followers helped generate leads. Implement a similar strategy by building your social media presence. Engage with potential clients on platforms where they are active, providing value through content that addresses their pain points.

1. Offer Compelling Incentives: The founder’s experience with referral fees for channel partners was successful. Consider offering similar incentives to your potential clients, such as discounts or special packages that make your services more attractive. This can help overcome any hesitations they might have.

1. Leverage Free and Paid Marketing Channels: As the founder is already planning to invest in Google paid web search ads and basic SEO, continue to explore these avenues. Also, consider adding more free marketing channels like content marketing, guest blogging, and industry events to broaden your reach and build credibility.

Where people get it wrong

One common mistake is to try to directly go after a competitor’s clients if they're not doing a good job. The founder of the article warns against this approach, saying it did not work for them. Instead, they suggest finding alternative strategies such as identifying and reaching out to underperforming clients of a competitor. Another common mistake is to rely solely on paid ads for marketing and sales. The founder argues that while paid ads can be effective, they are not the only solution. They recommend diversifying marketing efforts by setting up partnerships with pricing software and running free software with Google paid web search ads and basic SEO. Lastly, another common mistake is to not diversify marketing channels. The founder suggests using multiple methods to attract clients, such as setting up partnerships, offering referral fees, and running paid web search ads. Instead of solely relying on one marketing strategy, they advise incorporating a range of tactics to increase visibility and attract potential clients.

Do this next

• Today, identify a vacation rental management company in your area that is struggling. Reach out to their owners and offer them a better management solution.

• Create a list of your top 10 local vacation rental owners and start reaching out to them personally. Personal connections can often lead to trust and a better chance of success.

• Develop a basic yet effective email template to send out to your target clients. This template should highlight your services and why they would benefit from working with you.

• Schedule regular follow-ups with your initial list. Building a relationship with your prospects is key, so send updates and any new information that could help them decide to work with you.