Keeping Your Competitors in Check
Everyone has competitors, and most companies think they have a good feeling for where they stack up via tracking sales and viewing data and other metrics. However, if your company is winning your marketplace, do you know why, and, more importantly, do you know if your competitive advantage is sustainable in the long term?
It seems that either companies are so obsessed with their competition that they become paralyzed by following their every move, or they don’t really know who their competition is and then get blindsided when the competition comes in and disrupts their marketplace.
In today’s fierce competitive environment, a company must perform the delicate balance of deeply knowing its true brand essence while also having an acute awareness of its competitors. And while the focus on consumers and having self-awareness of your own company is most important, tipping the scale too far in one direction or the other will have negative consequences. You should know who your competition is, but you cannot become too myopic in your focus on them.
Use Data Wisely
The prevalence of data today across all areas today can both help and hurt you, depending on how it’s used. Like fire, it can help cook your food, but it can also set fire to your home. So, while data can help you make strategic business decisions, it can also overwhelm you to the point of analysis paralysis or make you so focused that you’re missing other important elements.
Companies are often guilty of looking at data for a specific purpose, but not looking at it holistically and seeing the other points that are interwoven with the data. It can also create fire drills. Many a marketer has heard the call for, “Why are sales down here? Figure out why!” and off they run to focus on something else. Data is important to know what’s occurring, but you can easily overdo it. There is a delicate balance. It is important to not only sit back in an office and analyze data, but you also need to leave the office and get out and talk with your customers.
The 3 Steps to Gaining and Sustaining a Competitive Edge
To truly understand where you stack up versus competition, and most importantly, how you can maintain a sustainable competitive advantage, there are three key things to keep in mind:
1.) Focus on the consumer wants and needs. How can we deeply connect with and understand them?
2.) Determine where you can bring unique value. How can you be more relevant to the end user than anyone else?
3.) Zero in on the competition. Where are they playing in your market? Where are you vulnerable to them?
1.) Consumer Closeness
To truly understand your customers / consumers and gain deep insights about them, you need to spend time with them. This means getting out of the office and observing them, talking with them, and asking about how they feel about your company / brand as well as the competition. Qualitative information gained from conversations with consumers and empathizing with them is as important as tracking quantitative measures.
2.) Unique Point of Difference vs. the Competition
Once you truly understand your consumer and gain deep insights about their true needs, you can use that information to help you to strengthen your positioning. Ask yourself, ‘How can we uniquely provide value to the consumer better than anyone else?’ This takes time and is not an easily understood. It is also important to not try and do this alone. A team of diverse thinkers sharing and synthesizing information from various sources, including their own personal observation with the end user, is critical to really honing in on your point of difference. One sure test is replacing your name with a competitor’s name with your brand positioning to see if it still is applicable. If it still works with the competitor, it is not an ownable point of difference and may need some more work.
3.) Zeroing in on the Competition
If your company has been strictly internally focused and forgotten about the competition, one way to mitigate this process is through Competitive Scenario Planning. Through this intensive process, you’ll get your employees together and ‘become’ the competitor. Who are they? What’s driving their strategy? Advertising? Sales materials? Digital? How are they presenting themselves?
To do this requires a lot of preparation work and getting the right people involved. You want to examine any sales and share data as well as consumer preference and satisfaction you can get your hands on. And it’s great to have the formal market research data, but if you don’t, not to worry, as there’s a lot on social media, ratings, and reviews you can find. Examine the competitive marketing materials and how they position themselves.
It is good to gather this information for all your major competitors and then put it all up in a room and share it with your team. Make sure to get different perspectives in the analysis, and completing a SWOT analysis and / or PESTLE analysis is always good. This helps gain not only a good view of what you think are the competitors’ advantages and disadvantages but also what other external factors may influence or impact you and your competitors.
So, in conclusion, you must make sure to balance your internal focus and understanding mixed with that of your competition, while also truly understanding your customers’ needs and how you can best fulfill them in a different and ownable way versus your competition.
Interested in understanding and enhancing your company’s competitive edge? To find out the health of your company’s edge, take our CompetivEDGE assessment at no cost, or directly contact Senior Consultant David Matthew at email@example.com or 571.295.9078 to talk more. In the meantime, you can also download our CompetitivEdge flyer for more information.