CSO Insights Blog Posts

Should You Talk About Your Competition?

Many of you are already familiar with the CSO Forum (see navigation link just to the right of BLOG at the top of the page); it is a resource center and forum for members of our on-line community. This week's blog is a quick peek at a question that came in and one answer (mine) among several that were provided:

Question: What are some thoughts about targeting a competitor by name in your sales strategies?

Answer: Name Competitors? Everyone knows you don't ever want to bad mouth, speak negatively or otherwise disparage your competition. You only lower the perception customers and prospects have of you when/if you do so. However, there is an interesting corollary to this.

The number one complaint of buyers is the person selling to them not understanding their (the buyer's business). Based on anecdotal evidence (i.e., not a question we ask in our annual survey), the number two complaint of buyers is the person selling to them not being conversant about their (the seller's) competitors! Unfortunately, this is also the #1 Sales Knowledge Management challenge (see chart).

Data from CSO Insights 2009 Sales Performance Optimization Survey and Results
©CSO Insights 2009

A couple examples may serve to help make this point.

You've been calling on a prospect and believe that you've been making good progress. On your third sales call, the buyer says, "I believe you have a good understanding of our business and the current challenge we are facing. I also think that the approach you've suggested and we've discussed makes sense. But let me ask you, what's the difference between your approach and (fill in the name of your primary competitor)'s solution to our problem?"

If your answer sounds anything like we're faster, cheaper, better, whatever, go to the back of the line. This buyer is asking you to assist in his/her buying process and casting you at least at the level of consultant (see Levels of Relationship matrix).

A much more helpful answer is, "Our firm's philosophy is such and such, which in this case means we're proposing to do X, Y and Z. The firm you're asking about has a philosophy of such and such, and my best guess is that in this case they would recommend A and B. You really would need to confirm this with them but here's how I would differentiate the two approaches."

Another example of this same question can come up particularly after a successful initial call. Buyer: "This has been really useful time for me and we've covered a lot of ground. But let me ask you, who are your two best/toughest competitors that maybe I should talk to?"

Again, if your answer sounds like, "We don't have any real competition when it comes to solving the problem you're addressing," or "Why do you want to know our competitors? Haven't I answered all your questions?" you can take two steps back. They likely already have done an Internet search on several terms to find out who you compete with; they're really testing to see if you're an honest broker and a reliable resource. You may even want to tell them, I can give you the name of their local rep (though some think this is going too far).

Regardless, you elevate yourself by knowing MORE about your competitors than the buyer and you lower yourself if you share any negatives about your competitors. Stick with Enzo Ferrari's business philosophy: Racing (i.e., competition) improves the breed.

Sell Well,

Barry Trailer

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