Competitive Analysis For Sales Professionals - Beyond The Basics
Clients usually know the differences between their vendors. They know that company A is cheaper than company B and that company C has a better customer service. If sales professionals wish to truly meet the needs of their clients, they should not only know what their clients know about their competitors, but more…
The Competitive Analysis
The purpose of a competitive analysis is to determine the strengths and weaknesses of your competitors, establish strategies that will provide you with a distinct advantage, and discover any of their weaknesses that you can use to leverage during the sales cycle.
Your primary goal when performing a competitive analysis is to identify the key differences between you and your competitors so you can take advantage of those differences when selling your products or services.
How do I Gather Information about My Competitors?
There are several different ways we at PositiveResults go about gathering information about our competitors. The following four tips will help you find the right information without a lot of extensive work:
1. The Internet
Research their website
The information published on their site is likely to include most of the general information you are looking to gather
Perform a general Internet search
Use a search engine to turn up product reviews, purchasing information, and other details not readily available on the company website
Use a market intelligence database
A market intelligent database such as Hoovers or D&B will allow you to gain additional information about your competitors if they have a profile listed
2. Shop Them
You can unlock customer service, maintenance, or customer experience information through your interactions with the competitor as a customer or an interested suspect. Depending on your situation, you may even be able to visit their headquarters, store, or service center to gather additional information.
3. Communicate with their Customers
Try to gather feedback from your competitors’ customers. The information these contacts can provide may be very helpful in comparing your customer service and quality of business. Find out why they use your competition and apply that knowledge to your sales process.
4. Use Trade Shows
Trade shows can provide valuable information on the culture of the company and how they interact with suspects, prospects, and customers. Examine their booth, and take notes on how it is arranged, the materials they have available, and how they interact with attendees.
What Information do I Gather?
The Basics
As sales professionals, many of us were taught early in our careers to gather and understand the basic information about our competitors. This typically includes following information:
Who are my competitors?
What do they do?
Where are they located?
When did they join the market?
Why are they competitors?
How do they compete?
Advanced Information
To sufficiently understand the level at which your competitors compete, you should strive for a more in-depth look at your competition so you may accurately describe the similarities and differences between you and your competition. The following information should be gathered as you research your competitors:
Economic
Sales by Market/Brand/Product, Profits by Market, Brand/Product, Growth, Viability Annual Sales by Product, Annual Profit by Product, Changes in Market Share, Relative Costs to Produce, Distribution Costs
What do I do with the Information Once I have it?
Once you have gathered sufficient information about your competitors, your next steps are to:
1. Compile your Data into one Common Location
The first step in analyzing the data you have gathered on your competition is to compile it for comparison.
2. Compare the Data and Identify Points of Differentiation
The most important parts of your competitive analysis are the points at which your data is different from that of your competitors. These points of differentiation will lead you to developing your competitive advantages and disadvantages to be used in various ways in the sales process.
3. Uncover the Impact
The final step in this process is to determine the significance of the points of differentiation; these points of differentiation should consist of the things your organization does significantly better than your competition. Even small differences can impact your ability to overcome the competition.
Your Competitive Analysis
Once completed, your Competitive Analysis will serve as a valuable tool throughout your sales process as you contact leads for qualification, interact with prospects, and discuss your offerings with customers.
Since 1984 Positive Results www.PositiveResults.com excels at teaching sales teams how to create an in-depth Competitive Analysis. Our Intellectual Sales Process seminar helps you leverage the strengths and weaknesses of your competitors to differentiate your products and services and create a true competitive advantage. To learn more about iSales Seminar www.PositiveResults.com/nbd contact us 800-926-5953.
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