How long has it been since you took time to evaluate the competition? If you have additional downtime during the pandemic, now might be the perfect time to take a close look at who the competition is and the solutions that they are offering.
Reviewing the competition will you valuable insights into your relative position in the marketplace. It is important to maintain a certain amount of objectivity during your review. We are all salespeople, and as a result we naturally press our advantages relative to the competition. It is in our DNA to think that we are the best. Forcing ourselves to look at the competition in a more positive light and giving full credit where credit is due is important in a competitive review. You might even discover some unanticipated opportunities in your review:
· Exploring new markets – The competition may be focusing on a prospective market that is a good fit for you, but which you might have ignored.
· Discovering Synergies – Some of your competitors may be potential allies. Recently, I consulted with a company that focused their marketing efforts on retail outlets. During the competitive review, we discussed a competitor down the street with a very similar product that focused on direct online sales. The company I was working with had no interest in working with direct outlets, and vice versa. We were able to establish a very friendly and mutually beneficial referral relationship between two competitors. In fact, they are now combining resources to pursue product developments that are meaningful to both of their client bases.
· Price review – It helps to know what other players in your market charge, even if your products and services vary. This will help provide a pricing benchmark as well as allow you to strengthen your value proposition.
Of course, there is always just the benefit of understanding your relative strength and market position. Updating your competitive review should be a regular, long-term endeavor. If you haven’t taken a careful look at the competition for a while, now is a good time to start.
CEO, My Value Advisor