The B2B sales universe is a pretty big place and if it’s just us it will definitely become an awful waste of space. Software companies are fighting each other in their crowded marketplace to play the right competitive selling game, that’s true. It is crucial to differentiate themselves to win the game and survive especially during the hyper-growth stage. We’re fighting against each other but at the same time expanding the market, changing the mindsets, forcing ourselves to do our best, and sailing to find our blue oceans.
Competition drives growth
We are evolving to differentiate from the players, both in the eyes of customers and (potential) investors.
First, let’s accept the solid truth that “there is always competition”!
There was and going to be…
While competition and challenger players make the ride more delightful, the joy of sitting on the winner podium with the first-place medal is always the ultimate goal for salespeople.
But, winning is the ultimate goal
Therefore, how should we prepare and position ourselves to win in a crowded marketplace?
Having a better product is very critical, but in addition to that, we should know the competition very well and train ourselves to become a “better team” in order to win against our competitors. Do not forget, “how you sell” has already overtaken the place of “what to sell” in today’s world.
Before starting with the DO’s of competitive strategy, let me highlight the DONT’s:
- Don’t solely rely on “Discounting” to punch!
If you stick to pricing instead of value, then be ready to lose that client for the same reason, to another competitor. Discounting aka “incentives” should be leveraged to speed up the process but not be the foundations.
- Don’t underestimate your own role in winning a deal.
At the end of the day, sales is both a science and “ART” and we are artists!
- What about misconceptions or false information planted by the competitor?
“We are doing exactly the same things as they do — with half price”
“They are not secure, trust able” etc…
- Listen to the customer
- Clarify the concern or objection.
- Highlights your strengths and why you’re the best fit for the customer.
- Never bad-mouth the competition or argue about their virtues or weaknesses, immediately return to your value proposition and strengths.
Let’s continue with the DO’s
Know the landscape
Let’s start with the competitor landscape and prove the importance of it.
Your product can be better (at least in one aspect) than your competitors. However, if you can’t master the “how to sell” part then you may feel the fear of “getting hit so hard” in the boxing ring.
If you train your team on “how to take a punch like a pro?” and know your competition fully, then the score of the game suddenly changes.
Get to know your competition fully!
But what I mean by “fully” is not just checking their website or your internal knowledge base. I mean knowing each and every small detail which will arm you to win the battle.
Do your homework before your meeting with your prospect who is already working with the competitors
- Do your research, know your competitors’ products, features, and services as you know the name of your mother. Act like you are their customer and about to make a purchasing decision with limited resources.
- Understand how they conduct these to the customer — how they approach their customers.
- Understand their marketing strategies, messaging and positioning
- Know their pricing policy.
- Learn their Customer Service Level, Support Structure, do they provide local account management. If not included, what is the cost of additional support?
- Know their brand and design values.
- What organizational structure do they have? The size of their development team, number of engineers or salespeople, department by department How many Customer Success Team members do they have in specific countries?
- Who owns the business, who are the co-founders, what are their dreams and why do they exist?
- Find out about their media activities — both traditional and digital media communication.
- What types of customers they’re targeting, what is their buyer personas?
- What about the financial resources they have?
- How innovative or disruptive they are, are we talking about costly and clunky competitors or agile and flexible players? Find out what new products they’re developing,
Create a list of things include the following:
1- What they’re doing better than you are
2 – What they’re doing worse than you are, so you can dig the right hole and craft the right competitive selling strategy, replace or coexist!
- Prepare your discovery questions and be ready for different scenarios
During the Meeting
- Position strengths to weaknesses
- Position yourself in the right way & offer real value.
- Understand the prospects’ needs,
- Understand where your competitor is “missing out”, or where are they being undervalued and ignored?
Examples of “Discovery Questions”:
- Ask the prospect if they are fully happy with the current solution. If the answer is yes then dig a bit more.
- Ask “if there would be one thing that you would improve from your current provider, what that would be?”.
The key is to find your competitor’s weakness in serving that client, if you hit the right pain-point, the prospect will let himself go and tell you more and more about how things could be different.
Do not only ask your prospect but also yourself. Can you fill that gap with your product or service? How can you build something that brings them value and opens up a niche for you?
Are you fighting against a better product, don’t give up!
Every competitor has weak points — places where your brand can outperform. And remember the real salespeople. A situation is where value has to be explained, organizations need to be navigated, politics sorted, and deals have to be won!