The competitive situations that people are facing today are much more intense and complex than they've ever been before. Most often we typically focus on other companies trying to win the same business we're pursuing, and we label these the "competition". We identify positioning and relationship-building strategies as important when competing against another company, but there are other serious issues hidden within the client's own organization that are equally important, and that are frequently overlooked in our strategy. Competition is defined as any alternative solution.
Customer decides not to do anything. This is the greatest overlooked type of competition. Change is hard. The customer is doing nothing, because it's easier than spending resources and energy to do something new. There must be a high degree of urgency to convince someone to buy something. In this scenario salespeople need to be concerned with the issues that might cause a potential customer not to take any action.
Ask yourself: What are the costs or consequences to the client for doing nothing and how can I make the client aware of these$%: If the customer decides to do nothing, what do we need to do to maintain our presence there until they have a more immediate need for our help$%:
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Customer provides internally. Most companies have resources to undertake many things themselves. Although an outside supplier might provide special equipment or talent, you may be faced with an "I can do it myself for less" attitude.
Ask yourself: If the customer decides to fix or improve the situation internally, will that really be a more cost-effective or trouble-free solution$%: If so, can we become involved in this internal solution$%:
Customer uses budget for something else. The perceived need is not strong enough to keep the customer from diverting funds to another area.
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Ask yourself: If the customer decides to divert funds to another project, are there sales opportunities for us in that project$%:
In each of these scenarios, salespeople can improve their chances of winning the sale, if they identify hidden competition (the client's alternative solution), and prepare a strong definition of how their product or service is better able to achieve the client's goals. It is not enough to rely on a relationship with one buying influence or on past experiences; the more involved you are with the customer's business issues, the better.
Be aware of internal competition, but keep the spotlight on your strengths. Keep the focus on the customer, and your solutions to what he is trying to fix, accomplish or avoid. Clearly delineate your contribution to their business, looking not just at your product or service strengths, but also at the entire context of your relationship with this customer.
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