When a National Competitor Comes Knocking:
How to Prepare For and Take Advantage of Competitor Buyouts
We’ve all seen it happen - a local competitor in your area is bought out by one of the national competitors, leaving your company as one of the last - or the last - locally-owned provider(s). The time right after a local competitor is bought out is often the best time to strike. Their customers are already faced with a change, and the difference in service and products will be more noticeable at this time. Additionally, most customers of local textile rental companies are local companies themselves, so they understand and appreciate what working with local businesses has to offer.
In the wake of an industry buyout, there are several things you can do to snag some new customers and come out on top.
Be Ready For Buyouts
Industry buyouts are inevitable and will continue to happen. The best thing you can do for your business is to be prepared and act fast. Before a buyout even occurs, you and your team should:
1. Clean Your Data
If you don’t regularly clean your data, (by data, we mean your CRM, or list of prospects), you could miss out on new opportunities. Properly managed data allows you to approach prospects whose supplier has been bought out by a national chain on a personal level, speak to the specific issues that affect them post-buyout, and show them that there is a better option. Some tips and best practices for organizing your prospect lists include:
- Resist the temptation to buy an email list as those can be a waste of money. It’ll take longer to cultivate and build your own list, but it’ll be much more relevant and therefore more effective.
- Establish a segmented database with detailed information about prospects. Include information like first and last names, company names, contract end dates, current provider, and their industry(s), so you are able to send them specific, relevant messages.
- You can go even further by segmenting by sales rep to send personalized emails or direct mail to prospects from that person.
If you get into the habit of regularly updating your customer and prospect database, you’ll thank yourself in the event of a local competitor buyout. You’ll have the relevant information to directly approach those specific
prospects and offer them exactly what they’re looking for.
2. Leverage Your Strengths
One thing that national competitors are consistent about is their inconsistency. Prospects facing a new supplier may not know the disadvantages of working with a national company, and may only take into account the cost differences. However, when it comes to uniforms, linens, and textiles, sacrificing quality for cost usually doesn’t end well. Show those prospects how much better and easier business can run by highlighting the biggest differences between a national chain vs a local provider, such as:
- No more late or incomplete deliveries
- Inventory management, so you’re never over or understocked
- Employee longevity, so customers are working with the same person
- Decision-makers are easy to contact, making solving issues
much faster - Transparency/flexibility in billing
- Quick response time with the ability to talk to a real person every time
- Your business and employees are a part of their community
3. Prove Your Business Can Walk the Walk
As members of the industry, we know the benefits of working with a local uniform or textile provider. By maintaining a consistent message throughout your brand that reinforces your company’s strengths over a national provider, it won’t take much for your sales team to convert those buyout leads into customers. Some good things to have on hand include:
- Print materials such as flyers, rack cards, or leave-behinds that talk about the biggest differences between a local and a national provider and address frequent questions and concerns.
- A “Local vs. National” page on your website that explains how your company provides solutions to the common issues that come with a national provider, statistics, etc.
- Blogs around the topic of industry buyouts, including statistics and success stories from within your own business. Case studies from customers who’ve switched from a national to your business are great to show tangible results.
There are more than a few ways for your business to onboard some new customers in the event of a local competitor buyout, but it is always preferable to be proactive rather than reactive.
When a Buyout Happens
When the moment comes and your local competitor gets bought out, it’s time to put your data and preparation into action. Here are the marketing strategies you can use to strike quickly and take advantage of the market:
- Targeted Email Campaigns: Email is one of the most cost-effective and best practices for lead nurturing, enabling you to develop a connection with your potential customers, bringing them through the buyer’s journey until they are ready to make a purchase. With clean data, you should be able to easily identify prospects being affected by a buyout, and provide meaningful content that helps them see they have options. Highlight key capabilities or solutions your equipment or services provided to people in the same industry.
- Local Digital Ads: After a buyout, there are several simple things you can do to target prospects who may be unhappy with the change. This includes creating Paid Search Ads, which will put your ads in front of a specific target audience that you can cultivate. Add the names of the former competitor and the national provider that bought them in your keywords, refer to common issues customers of national providers have in your ad text (late/incomplete deliveries, poor customer service, confusing billing), and target the areas and industries where the buyout prospects are located.
- Direct Mail Campaigns: Combine your clean prospect data and ready-to-go print materials by starting a direct mail campaign for the prospects being affected by the buyout. Let them know that they have better options than their new national provider, and direct them to your Local vs. National page and relevant blogs. To really set yourself apart, include samples of fabrics or products so they can literally see and feel the difference.
Bigger Isn’t Always Better
We don’t have to tell you that working with local, independent businesses is almost always better than working with a national chain. The quality of products, service, and dedication to a positive customer experience of a local company is unmatched. By staying true to your company’s strengths and running your business on the practices that make local businesses great, the big guys won’t stand a chance. Use your data and take that
time to nurture those relationships, and you’ll get clients for life.
ELIZABETH CARTER
Account Manager
Elizabeth is a Michigan State University (go Green!) graduate with a Bachelor’s Degree in Professional and Public Writing and has always thrived when working with words. Before joining the RED66 team, Elizabeth tried out several careers, first obtaining an Associate’s Degree and working as an American Sign
Language Interpreter, then a 5th and 6th-grade math teacher, and finally a freelance copywriter.
616-558-2049
red66marketing.com
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