What To Do When A Competitor Goes Out Of Business

Competitors go out of business all the time for one reason or another.

But from the customer’s perspective, going out of business can mean anything that makes them cease being a viable option, including:

• A feature (or feature set) is no longer updated, supported, or is sunsetted entirely
• The company moves up-market and stops supporting smaller customers
• The company re-arranges pricing to a much more expensive option
• The company doesn’t or stops supporting a legacy technology that is still in widespread use

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If your competitor has left their customers stranded, they’ll be looking for a new provider in the same industry—your industry!

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The moment a business is about to close its doors, you’ll have two tasks at hand:

1. Acquiring new customers
2. Doing it before your current competition can!

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In this blog, we’ll provide you with a  strategy that’ll let you do both. But we’ll be doing it with our signature dramatic flair, i.e., for a fake pet entertainment company, Meowview, sunsetting and abdicating their cat bed for their competitor business, Petflix.

It’s time to let the cat outta the bag and:

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#1 Know how you stack up and who your solution is best for

Before welcoming Meowview's displaced cat lovers with open paws, Petflix needs to take a strategic step back for service comparison.

Understanding who these potential new customers are and why they chose Meowview in the first place is crucial for crafting a winning user acquisition strategy when you target competitors.

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This section dives into the world of Meowview's former subscribers to:

• Identify key features and content that resonated with Meowview users.
• Understand what aspects of the platform were most valued by cat owners.
• Gauge the overall sentiment surrounding Meowview's closure and potential concerns about switching platforms.

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1. Conduct Positioning Research

Here's how Petflix can uncover Meowview's customer motivations:

A. Social Listening & Public Forums

Engage with cat owners on social media platforms and online communities frequented by Meowview users. Look for conversations about Meowview's closure and what people miss most.

1. Research online communities frequented by cat owners, including Facebook groups, cat subs on Reddit, pet forums, and cat influencer comment sections.
2. Monitoring customers conversations related to Meowview's closure. Look for mentions of what users miss most, positive memories of the platform, and frustrations with the shutdown.
3. Participate in relevant discussions with empathy and helpfulness.

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<aside>💡 Ask open-ended questions like "What did you enjoy most about Meowview?" or "What are you looking for in a pet entertainment platform now?"</aside>

‍B. Targeted Surveys

Next up are surveys that target competitors users and cat owners in relevant demographics:

• Design a concise survey using tools like Google Forms or SurveyMonkey.
• Distribute it through social media ads, email campaigns, or partnerships with cat influencers.
• Compile and analyze survey responses to identify trends and common themes.

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<aside>💡 Focus on 5-10 open-ended questions about:Reasons for choosing MeowviewMost frequently used featuresValued aspects (content type, user interface, etc.)</aside>

C. 1-on-1 Interviews

For a more in-depth look, pick a smaller group of former Meowview subscribers and have open-ended discussions about their experience and their needs with your target competitor.

• Reach out through social media or email.
• Use a structured interview guide with open-ended questions.
• Conduct interviews based on participant preference, i.e., via phone, video call, or online chat platforms.
• Identify recurring themes and key takeaways from the interviews.

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<aside>💡 Offer incentives like a free Petflix trial for participation.</aside>

D. Sentiment Analysis

In addition to understanding motivations, it's valuable to gauge the overall mood surrounding Meowview's closure.

Petflix can use customer sentiment analysis tools, such as Brand24, Sprout Social, & Crimson Hexagon, to study social media posts and online discussions.

Knowing the emotional landscape will help them craft empathetic messaging that also addresses potential concerns about switching platforms.

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<aside>💡 When doing a competitor analysis, look for:Common themes and emotions, such as frustration, sadness, confusion, etc.Use relevant keywords, like Meowview closure, cat entertainment, and petflix</aside>

2. Be clear on who you are as a company

It’s one thing to position yourself against competitors as a part of your marketing strategy, it’s another to have that be your entire marketing strategy.

If you’re only positioned to target competitors, then you can’t stand alone, and that means your not clear on how you serve your customers.

But before you can serve them, you’ll need to know who your customers are! Petflix will leverage customer research to create a laser-focused ICP for themselves.

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<aside>💡 What does customer research mean? It means customer interviews and reviews!</aside>

This is how Petflix will identify patterns and trends to refine their understanding of their ideal customer:

CategoryDetailsDescriptionWhoFree vs. Paid UsersFree Users: May be new to the platform or prefer a basic content library.Paid Users: Power users who leverage premium features and content.Demographics* Age: 25-54 (Millennials & Gen Z)

• Location: Urban & Suburban Areas
• Occupation: Likely tech-savvy professionals with disposable income | These users are more likely to adopt new pet care technologies. || Psychographics | * Values: Pet wellness, convenience, fostering human-cat connection
• Emotions: Seeks relaxation, joy, and peace of mind for themselves and their cat. | Petflix provides entertainment that enriches feline lives and strengthens the human-cat bond. || Behaviors | * Early Adopters: Embraces new pet care technology.
• Engaged Users: Spends significant time on the platform and interacts with features.
• Reviewers: Provides both positive and negative feedback to improve the platform. | These users actively participate in the Petflix community and appreciate its positive impact on their cats. || Use Cases | All Users | * "Catflix and Chill" channel for passive entertainment.
• Interactive toys for playtime stimulation.
• Educational content for responsible cat ownership. || Key Usage Metrics | Paid Users | * Time spent watching specific content categories (e.g., calming videos, educational shows).
• Frequency of using interactive features (e.g., laser pointers).
• Engagement with specific shows (e.g., number of times re-watched). |

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Petflix will repeat this process for any additional ICP segments they identify. With a clear understanding of their ideal customer profiles, they can develop targeted marketing content and campaigns that resonate with their specific needs and preferences.

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<aside>💡 P.S. Look out for future blog posts on crafting a winning positioning statement and developing a distinct brand personality to further enhance your marketing strategy.</aside>

By analyzing customer feedback, they can craft a compelling statement that captures Petflix's brand essence:

In the minds of our core customers, Petflix stands for providing a stress-free and enriching entertainment experience for cats because we excel at offering engaging content, interactive features, and calming options, ultimately making them feel happy and relaxed when we solve their (and their owners') need, i.e., quality cat entertainment.

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<aside>💡 In short, craft your ICP in a way that has you:Nailing your market positioning statementNailing your tone of voice to stand out amongst the competitors’ chatter</aside>

3. Analyze Competitor’s feature-benefit-use-case matrix

Understanding Meowview's strengths and weaknesses is crucial for Petflix to attract their displaced customer base and gain competitive advantage.

<aside>💡 P.S. Be picky - there are probably 10 areas where they’re better than the competition, but Petflix will stick to the top 3-5 .</aside>

Here's a competition comparison of one set of Meowview's features, benefits, use cases, and areas for improvement that Petflix can move in and purrfect:

FeatureBenefitUse CasePotential IssuesPetflix OpportunityCurated Cat Content LibraryDelivers engaging entertainment specifically designed for cats.Keeps cats entertained and mentally stimulated.*Limited content library*Repetitive programming*Lack of variety for cats with specific needs (e.g., anxious felines).Offer a more extensive and diverse content library with content specifically tailored to address various cat behaviors and needs (playful, anxious, etc.).

Once they nail this, Petflix can cater to a broader range of cat owner needs and establish itself as the go-to platform for keeping feline companions happy and entertained.

<aside>💡 P.S. A throughline that lets you stack up against all of them ties into your positioning you just nailed!</aside>

4. Be crystal clear on the features that make you most beloved - and ones that might dissuade some from switching to your product

It’s crucial to know the why behind cat parents’ non-stop purring about Petflix. So, they’ll pull from their customers’ favorite features, reviews, various use cases, and competitor insights, like this:

Use CaseBenefitsFavorite FeaturesCustomer QuoteCalming Anxious CatsReduces anxiety, promotes well-beingCalming nature shows, soothing music channels- Sarah P., calmer SiamesePlaytime for Energetic CatsBurns excess energy, strengthens bondInteractive laser pointers, virtual bug chases- David H., happier BengalMulti-Cat HouseholdsReduces boredom, caters to individual personalitiesDiverse content library- Emily K., happy multi-cat home

<aside>💡 Bonus points - you have a case study on this? Use it!!</aside>

That said, it will be important for Petflix to remember they can’t please everyone. Knowing which segments of their competitor audience to target is just as important as being able to compete at all.

Depending on how they look at it, it also makes theirs and the competitors’ company stronger - both have customers that are the best fit for their mission, vision, and feature sets!

#2 Creating the content to compete with

Now that they have a clear view of:

• Wow they’re positioning themselves against competitors
• What their core positioning is outside of competitors
• What their ICP is that overlaps with competitors’ so they know who to target
• What features and use cases make the most sense to highlight to win those ICP’s

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At this stage, Petflix is ready to get to marketing work to win those hearts and save them from the frustration abyss of no tool to solve their problem well!

This is how they’ll begin:

1. Create a List of Alternatives aka Meowview MIA? Purrfect Alternatives for Your Feline Friend

Petflix can fill up the paw-shaped void left behind by Meowview's closure with content such as this:

• Alternatives to Meowview Series: Comparing Petflix with other options to show why it's the purrfect successor.
• Cat Expert Roundups: Featuring veterinarians & influencers for valuable feline entertainment tips.

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By creating informative content that’s respectful of Meowview as a choice, Petflix can position itself as the natural choice for displaced Meowview users.

<aside>💡 Focusing on BOFU keywords is really important because these customers were already using a similar tool which means they know why it is important for them.</aside>

2. Make the product changes for the customers you’re pitching

Sure, Meowview's closure can be the right time for Petflix to make the switch purrfectly smooth for the displaced customers.

But Petflix will also need to show they’re willing to go the extra mile to actually welcome those customers to their new homes. For instance:

• Content Expansion: Coming Q4! More genres (educational cat shows, historical animal docs) & user-generated content for playtime ideas.
• Smarter Recommendations: Coming Q3! A new engine tailors content to your cat's age, breed & viewing history.

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Changes like these will show Meowview fans that Petflix is committed to exceeding expectations and continuous improvement.

3. Make customer migration easy

Making the switch to a new platform, Petflix, shouldn’t feel like chasing a runaway laser pointer.

Here's how their customer migration strategy can help their new customers get started:

• Seamless Setup: A purrfectly simple setup process. No complex configurations or data migrations required.

<aside>💡 Make it as simple as: Just sign up, customize your preferences, and let the feline fun begin!</aside>

• Priority Onboarding Support: New Petflix users transitioning from Meowview get priority access to the customer support team.

<aside>💡 How-to guides (for switching and getting started), video tutorials, and answering questions can go a long way.</aside>

• Beloved Content: Make up for not being able to directly import data from Meowview with a recommendation engine.

<aside>💡 Something along these lines: Tell us your cat's preferences for a curated viewing experience that will have them batting at the screen in no time.</aside>

#3 Show what you know! What you’re looking for? I’m over ‘ere!

Here's a roadmap to attract displaced cat owners to Petflix and get those feline entertainment needs met!

1. Leverage Content and SEO

Some tactics Petflix will be using:

• SEO tools and user research platforms like Ahrefs, Reddit, and Quora can help them identify keywords related to Meowview's closure and cat entertainment needs.

• A content mix, such as informative blog posts addressing "alternatives to Meowview" searches, and in-depth guides showcasing Petflix's features.

• Content repurposing for LinkedIn expands our reach to cat parent professionals.

2. Engage with the Community on their turf

When engaging the displaced Meowview users, stand out by:

• Joining online communities and offering helpful tips and support without being overly promotional.

• Showcasing how Petflix addresses Meowview's shortcomings, focusing on the benefits that matter most to cat owners.

3. Make the pricing a no-brainer for those switching

Be clear on any promos or discounts you have that would make switching easier and decrease friction.

4. More tactics

With these tactics, Petflix can win over even more of Meowview's former pawrents and reign supreme in the cat entertainment realm:

CategoryStrategyPR & Social MediaPress ReleasesTargeted Social Media AdsInfluencer PartnershipsAcquisition StrategiesAffiliate MarketingFree Trials with Exclusive ContentExit-Intent PopupsRetention StrategiesPersonalized Welcome CampaignsLoyalty Program

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So, to recap:

A competitor's closure presents an opportunity, but act with compassion and integrity. Here's how to ethically win over these displaced customers:

• Acknowledge their frustration and position yourself as a helping hand.
• Focus on how your product/service addresses the shortcomings exposed by the competitor's exit.
• Offer seamless data migration, special introductory discounts, and exceptional customer support.
• Develop a plan to welcome these potential customers before competitor closures happen.

Be warned, though: Businesses make decisions to prioritize different segments of their customer base and move upmarket or change feature-sets all the time. What can be good for their business long-term can hurt those now-irrelevant customers - and give you a chance to be the hero they need.

Want to chat about creating a marketing strategy to make you a no-brainer in the space?

Let’s talk!

FAQs

What should you do if your competitor has a big public blunder?

What you should do if your competitor has a big public blunder or slip up:

1. Maintain a respectful silence and focus on your own brand.
2. Reinforce your positive values to capitalize on strengths
3. Do a competitor audience analysis and offer valuable insights to build trust.

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What do you do when a competitor goes out of business?

When a competitor goes out of business, show empathy by reaching out to their employees. Assess the market impact and adjust strategy accordingly.

Why should you be careful about monitoring competitors?

Be careful when you track competitors since you want to have positioning and a marketing strategy that is not completely dependent on who they are, what they’re saying, and what their marketing strategy is. So, have a separate marketing strategy based on what your product kills at and the value you provide customers.

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