As the old saying goes – “you have to keep your eye on the ball,” and the ball is the customer when it comes to executing an effective strategy for winning against the competition. It is easy to take your eye off the ball and fall prey to the trap of getting in a defensive mode by reacting to the competition. But it is critical to stay focused on the customer’s needs, challenges, and concerns. Top sales performers focus on the customer and manage the competition.
Let’s take a look at some ideas for executing that principle in the heat of battle. The first step is all about getting on the other side of the table. It isn’t easy to sell, particularly against a worthy competitor, if you don’t know how people buy.
Understanding the Buying Process. To develop an effective competitive strategy, you have to know who the players are in the decision process, the roles they will assume, and their opinion of you and the competitor.
You also need to know what the buying process looks like – what are the steps? A major mistake is assuming that it mirrors your selling process.
Although somewhat notional, approximately 75% of the time, customers make their final decision halfway through the buying process. So many salespeople may be doing the right thing but doing it too late. It is why getting a general picture of the buying process early on is a good idea.
Knowing the Competitor Profile. If you focus on the customer and can answer these four questions about the competitor, you can probably execute a strategy where you win, and they come in second.
Capacity – What are your competitor’s significant capabilities and limitations?
Assessment – What does the customer think about the competitor regarding the present opportunity?
Performance – What is the competition presently doing exceptionally well and poorly, and why?
Strategy – What is the competition’s strategy for the account?
Implementing Best Practices. Three more best practices that can be helpful executing a more effective strategy are:
Dealing with Passive Competition. Sometimes the most challenging competition is the customer “doing nothing.” In those situations, one needs a strategy for overcoming the no-decision momentum.
Broadening the Definition of Competition. Often the competition is not for a similar product but a “competition for dollars.” The competitor is selling an entirely different product, but you are competing for the same budget dollars.
Differentiating on Added Value. Your core product and the competitor’s product may not be significantly different. It’s then critical to differentiate yourself by profiling the value of all the other services and assistance you extend the customer.
Today we are living and selling in a time of “compressed history.” Changes driven by the global market and advances in manufacturing technologies make the past a lousy predictor of the future. As a result, competitive advantages that once lasted a long time now disappear quickly. If you want to continue to win against the competition, assuming what worked in the past will work in the present is a risky strategy.