Soon after we start working with a Business Owner we will ask them what they know about their competitors. Many know who their main competitors are but very rarely know much more than that about them. We very often mystery shop our clients’ competitors and then our client themselves. It can be very revealing.
So why is it so important to know about your competitors?
Well, it can tell you what you do well in comparison and what differentiates you, which is very important in today’s highly competitive market. We mystery shopped a domiciliary care company who provide care for the elderly by phone. We enquired about care for an elderly gentleman who needed help at the beginning and end of the day. They listened to our needs for a few minutes but when we got to the end of our request we were advised that the person who dealt with enquiries wasn’t about at that moment. They asked us to call back later rather than taking the initiative to come back to us. Needless to say we didn’t call back as we saw their response as a reflection of the care they might or perhaps might not provide depending on who was available!
How else can knowing about your competitors help you?
It can tell you where you sit in the marketplace with price, service and quality. How do they deal with their customers? What’s their product range like? As a result of your findings you can work on your competitive compelling advantage to differentiate you from the rest.
So what are the six most important things you need to know about your competitors?
1. Who are your top five competitors?
2. Do you understand their offering? (Have you mystery shopped them and as importantly have you mystery shopped your own business and do you do it regularly – at least once a year and perhaps more often depending on your industry)? What do the online reviews say about them? What are they doing well and what could they do better?
3. Do you understand their financial performance?
4. How much do they charge? This is often a useful barometer as to whether your charging structure is right
5. Who is the most admired competitor? What can you learn from them?
6. What is your competition doing to grow?
Understanding your competitors will provide you with opportunities in the marketplace and give you an advantage as they may well not be doing the same.
As Walt Disney said, “I have been up against tough competition all my life. I wouldn’t know how to get along without it.”
Result driven and dynamic professional with extensive experience in business relationship management. Proven track record of success in customer satisfaction/retention, business development and…
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