How to Take Customers from your Competitor

There are two supermarkets that approximately the same distance from where I live, but I frequent one over the other significantly when I buy my groceries. My loyalty lies with Hannaford over Price Chopper for various reasons including the the level of cleanliness(at least for these 2 particular locations), familiarity with the store, and that I’m near Hannaford more often. I pretty much know Hannaford like the back of my hand, but the last two times I’ve been grocery shopping it’s been at Price Chopper, they’ve drawn me in and I will continue to for the time being.

How has Price Chopper lured me in to do shopping with them instead of my good old Hannaford? It’s simple, they are competitors that offer the same products and it would take just a little benefit on my behalf to make the switch. In such a competitive market an $8.00 coupon off a purchase over $50.00 was enough to get me shopping at Price Chopper. There were also additional coupons that I was able to use in conjunction with the $8 coupon that sweetened the offer. When the competitors are so closely matched and the opportunity cost going from one to another is very small, an $8.00 coupon was more than enough.

In my most recent grocery shopping trip I saved $13.00 on a $74 purchase for a final total of $61.00 with a savings of about 17%. That’s a good chunk of change to save when prices on products in a grocery store won’t differ too much.

Now that they got me doing my grocery shopping at Price Chopper, how do they get me as a regular returning customer? If it wasn’t a super amazing quality experience alone to persuade me to return, why not give me the same coupons I used in the purchase with the same great savings. That’s what they did, I got the same coupons I used that day back so more savings for me. Savings like that on groceries can’t be denied with the low opportunity cost from one supermarket to another. As long as I’m saving something over 15% it’s worth it. If I continue to receive these coupons it’s worth it and I’ll be going to Price Chopper. Unless there is there is a major change in cleanliness, new products that I must have that Hannaford doesn’t carry, and I’m around the Price Chopper area more I will probably be returning to Hannaford when there are no more coupons.

Ultimately they got me there shopping with the possibility of converting me to a regular customer which is the main objective, otherwise I probably wouldn’t have gone there for past two grocery shopping trips. Price Chopper has taken me as a customer away from Hannaford for at least two grocery shopping trips and giving me the same coupons that got me shopping there in the first place to use again I will probably be back at least one more time. Price Chopper was able to get me as a temporary grocery shopper, but I will probably be back to Hannaford when these coupons end because I personally like Hannaford more.

Similar to e-commerce you could do the same thing by offering a great deal that you can’t resist with the goal in mind to getting new customers by taking them away from your competitor. Get the customer shopping with you first, then if you give them a quality experience you may have hooked yourself a new customer. This is a competition and if you think you’re better than your competitor lure them in and convert them to be your customer and take market share. Price Chopper took me away from Hannaford but they weren’t able to convert me to a regular shopper because I think Hannaford is better.