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 SAVVY
SELLING - FEBRUARY
1, 2007
Four
Reasons to Thank the Competition
by Michelle Nichols
EXECUTIVE
OVERVIEW
It
can you help you better define
your product or service, improve
on it, energize you, and educate
potential customers
Have you thanked your competitors
lately? At first it might sound
counterintuitive (or just plain
nuts) but when you stop to think
about it, your competition can
actually help you sell more.
Hear me out. Without competitors,
you would miss out on the four
big benefits every salesperson
should take advantage of.
1. Competitors help
you define who you are to your
customers. Consider
this: Where would Pepsi be without
Coke? If Pepsi was the only
household name cola available,
it would have to tell its customers
it sold a sweet, brown, fizzy
beverage. Instead, it markets
its product as a cooler, hipper
alternative to Coke.
As a sales speaker, I've also
benefited from having one major
competitor. We share roughly
the same sales philosophy. The
big differences between us are
that he is better known, a lot
older, and uses coarser language.
So when potential clients ask
me for a point of reference
when considering me for a speaking
gig, I say "I'm the kinder,
gentler, female version of Mr.
X who doesn't curse." That
usually produces a smile of
understanding—and often,
a deal.
2. Rivalry can bring
out your best. For
example, when Japanese automakers
began to make serious inroads
into the American marketplace,
U.S. manufacturers responded
by improving the quality of
their cars—though, unfortunately
for them, they're still struggling
at it. Obviously, when your
competitors improve, you had
better improve too—or
risk getting fired by your customers.
Even though it's painful and
expensive, over time you can
provide better products and
services.
3. Competition adds
energy to your selling efforts.
A good example of this was the
battle between Nike and Reebok.
At one time, Nike's mission
statement was "crush Reebok."
Those were words the sales forces
of both shoe manufacturers could
rally around. (Never mind that
Nike won.) Your customers also
get to join in on the fun of
choosing sides and participating
in the duel with their dollars.
4. Competitors educate
your customers through their
advertising and marketing.
While their campaigns push customers
on their specific new products
and services, they're simultaneously
marketing potentials on new
features available industrywide.
This means your competitor is
doing some pre-selling for you,
legitimizing the latest widget.
Instead of glaring at your competitor's
large, glossy ads next time
you see them, understand that
they could be paving the way
to a sale for you.
My sales-speaking competitor
spends a lot of money selling
companies, groups, and individuals
on the importance of investing
in their sales knowledge, whether
it's through a book, CD, training
series, consulting agreement,
or speaking event. I like to
think of him as a big cruise
ship crossing the ocean. In
this scenario, I'm a smaller
boat that tucks in behind him,
not expending as much energy
as he does, but quickly moving
forward. I reap some of the
benefit of his efforts, as potential
customers become more knowledgeable
about the benefits of spending
money on becoming better at
selling.
However, before you order a
floral bouquet for your competitors,
make sure you're in your best
fighting form. Here are three
suggestions to strengthen your
competitive position.
1. Information is power.
Learn everything there is to
know about your primary competitors.
Make a scorecard of the key
points you want to evaluate,
and measure them on a regular
basis. If they have a store,
go there and shop, and pay attention
to everything from the cleanliness
of the parking lot to the type
of customers to the store’s
layout and signage.
Whether or not your competitors
operate out of physical stores,
learn what types of products
or services they're featuring
and which products they're clearing
out. Make a purchase, arrange
a layaway or financing, make
a return, an exchange, and a
complaint. Write for information,
study their financial filings,
their brochures, their ads,
and call them on the phone or
e-mail them.
2. Track their trends.
If you fill out a scorecard
on your major competitors on
a monthly basis, after only
a couple of months you will
begin to see trends. What are
they doing more of? Less of?
What is changing for them and
staying the same for you—or
vice versa?
3. Once you understand your
competitors, you can start
to see how they think and act.
Strategize how you
can excel where they're weak
and match them where they're
strong. Once you've done this
work, don't keep it a secret.
Let your customers and potential
buyers know how you outshine
your competitors.
Years ago, my boss taught me
not to call them "competitors"
but rather "valued associates."
Regardless of what you call
them, competitors can spur you
on to proclaim victory. Happy
selling!
Michelle Nichols is a
professional sales speaker and
consultant based in Reno, Nevada.
She is also the Savvy
Selling podcast host for
BusinessWeek. She welcomes your
questions and comments. You
can visit her web site at www.savvyselling.com
or contact her at michelle.nichols@savvyselling.com.
Her toll-free number is (877)
352-9684 and direct line is
(775) 303-8201.
Copyright 2007. All rights
reserved.
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