Step 1 – Determining the performance metrics in which you are going to use to measure your organization vs. the competition
Step 2- Compare those metrics against the average for your industry or peer group
Execute on those two steps and you will have defined the gap vs. your competition.
Now we can be a lot more tactical within the opportunities in the sales funnel. An area where you have a positive gap you should be leveraging and exploiting immediately in any opportunity where it makes sense. The areas where you find a deficiency gap you need to improve quickly and then train your organization to help close the gap.
One mistake sales professionals will often make is not losing quick enough, when you are unclear of why you are losing you could go through the Sales Process over and over again, only to have a fade at the end of the sales campaign which results in a ton of time wasted. Then the sales professional asks, why?
The answer, do competitive analysis, there are many ways, but understanding what you’re up against early on in the Sales Process can help you quickly determine where your time is best spent in improving your sales organization. So do the following:
1) How visible is your competition or how often are they competing for the same deals you are?
2) Know your win rate, how often do you win when you are against competitor A, B, C?
OK, so you know how often your competition is in a deal and you know your win rate vs. them, right? Maybe competitor C is the most difficult to beat in a competitive situation, but they aren’t in many deals, so we generally should lose quick when we “see” them in a deal. Competitor A is competing in a lot of deals we have in the funnel but we have a high win rate against them, not much time should be spent worrying about competitor A. Finally, competitor B, they are in a lot of deals and we win only 30% of the time against them. THAT IS WHERE WE WANT TO SPEND OUR TIME.
You’ve narrowed in on where you can get the most return in improvement vs. your competitors, in this case a highly active competitor where you lose more often than win. If you now execute on improvement the residual effects on your sales organization and company can be HUGE!