I have one particular client who doesn’t concern themselves with the competition. However, I contend that it is worth understanding who is at the other end of the rope. Not so much because you want to drag them over the line but you need to know where their strengths lie and how your business compares.
The thing is that your competitor may be testing their current market pricing and services as part of a penetration pricing strategy. Your current client may be checking the market to ensure they have the best return on investment. Your potential client may be comparing your features and benefits with your competitor to see who gives the best value.
Therefore, it is worth understanding how urgently your client needs what you can deliver and more importantly whether you can deliver in their timescale and within their budget. Moreover if you decide to undercut your competitors and take on a client who won’t make you any money in the short term you need to know how you do will make money from them in the longer term.
So may sure to take a look these top ten competitor aspects:
- the products or services they provide and how they market them to potential customers
- the prices they charge
- how they distribute and deliver
- the devices they employ to enhance customer loyalty and what back-up service they offer
- their business brand and design values
- whether they innovate – business methods as well as products
- their staff numbers and the calibre of staff that they attract
- how they use IT now and their future plans
- who owns the business and their ethos
- their annual report
And … Of course, you do need to consider that, if you do win the tug of war – will you remain standing?