For any salesperson aspiring to achieve success, mastering the art of selling despite competition is crucial. Those who excel in this area often discover that it is both lucrative and thrilling. Indeed, many inherently competitive sales professionals find that rivalries can motivate them more than incentive programs, commission paychecks, or the quotas established by their own employers.
Experienced salespeople, understanding that their rivals are other sales professionals, have created strategies focused on outshining that competition. Below are some of the effective strategies we’ve uncovered from analyzing countless successful sellers.
Strategy 1: Familiarize Yourself with Your Competition.
It’s quite unsettling to be midway through a presentation when a prospect unexpectedly mentions a product you’re unfamiliar with. Responding with, “I’ve never heard of them; they must be new,” can lead to several issues. It reflects poorly on you when a prospect appears to have more knowledge about your industry than you do, which undermines your sales abilities. A vigilant salesperson utilizes all five senses to detect any signs of competition. Here are some insights we’ve gained from industry experts.
Pay Attention to Your Customer.
At times, a customer may directly state, “I’m going to solicit bids on this.” More often, though, indications are subtler, such as, “I want your best price on this,” or, “I have to confer with a few others before reaching a decision.” Stay alert for any signs that a competitor could be involved.
Look for Signs Indicating a Competitor’s Presence.
Be observant for any clues that a competitor may be present, whether it’s a car parked outside, a business card left on the receptionist’s desk, or sales brochures visible on the prospect’s desk—anything hinting that a competitor has been there.
Inquire About Competitors.
This should be approached with caution. A receptionist might comment, “Mr. Jones has been inundated with salespeople today!” You can glean valuable insights by asking a discreet question like, “Were they newcomers or familiar faces?”
Identify Competitors in Disguise.
Research revealed that during economic downturns, General Motors found that their Cadillac wasn’t just competing with other vehicles, but also with luxury items like diamonds, yachts, and fur coats. Salespeople face challenges when one partner desires new furniture while the other prefers to invest money in a European trip. Be on the lookout for hidden competition!
Understand Competitors’ Offerings.
Make it a priority to learn about what each of your direct competitors provides: their features, prices, pros and cons, and quality standards across various price points.
Familiarize Yourself with Competitors’ Business Practices.
While most competitors conduct themselves honorably, some may not. Be vigilant against “underhanded” tactics and “unfair play.” Thankfully, unethical practices aren’t typically the main focus of professional salespeople. They are more concerned about terms, discounts, shipping methods, service policies, warranties, and other intangible factors that might persuade customers to choose their products.
Understand the Competitor’s Connection with Your Customer.
Sometimes you’ll find yourself competing, not against a rival product, but against a strong bond the competitor has formed with your customer. How you navigate this situation must be tailored to it, as passive observation isn’t a wise approach.
Strategy 2: Steer Clear of Direct Conflict with Competitors.
Engaging in open conflict typically lowers your reputation among competitors and, perhaps more importantly, can damage your standing with the customer you’re vying for. Below are some principles that can help you steer clear of disputes with competitors.
Avoid Criticizing a Competitor’s Product or Service.
Disparaging comments can diminish both your credibility and that of your offerings. Critiquing a competitor’s product when a customer has already decided to purchase it can lead to doubts about their judgment. If the customer perceives it this way, gaining the opportunity for future discussions may become challenging.
Concentrate on Products and Issues, Not Individuals.
If you suspect a competitor has misrepresented your product, refrain from calling them dishonest; instead, showcase the verifiable facts. Highlight the benefits of the superiority of your company, its offerings, and services to the customer.
If your product presents advantages over the opponent’s, acknowledge the customer’s evaluation, then inquire if they have thought about the benefits your product can provide. “Yes, the X-brand is a solid choice and offers decent service. But have you considered the savings in labor due to our machine’s enhanced efficiency over its operating life?”
Strategy 3: Investigate the Customer’s Expectations of the Competitor
By skillfully posing questions, you can uncover valuable information that makes it simpler to compete against the opposition. Understanding what the customer knows can significantly enhance your selling efforts against a competitor. Here are a few inquiries you might consider making to the customer.
- What knowledge does the customer have about the product or service that the competitor is selling? They may be unaware of certain downsides.
- What is the customer’s perception of the competitor and their products or services? If the customer refers to you as Mr. Brown while calling your competitor Charlie, it may reflect a different level of rapport. Critiquing a product the customer favors too vehemently could result in immediate dismissal.
- How close is the customer to finalizing their buying decision?
- Is it too late for them to reconsider their choice?
- What has delayed the customer from purchasing the competitor’s product or service?
- Is there a perceived drawback that you can leverage?
Strategy 4: Outperform the Competition.
Often, an underdog can prevail in a sale simply through exceptional sales techniques. Here are some strategies to help you outperform your competitors.
- Be the first to arrive and aim to secure the sale before a competitor can step in.
- Deliver a superior presentation. Hone your skills and provide your absolute best.
- Engage the customer. Involve them in the presentation process.
- Enhance perceived value. Don’t merely assert that your product is better; demonstrate it!
- Encourage prompt closure. Try to finalize the deal NOW; any postponement may open the door to competitors.
Strategy 5: Transform Price into a Competitive Advantage.
If your pricing is lower, emphasize the value and savings involved. Conversely, if your price is higher, highlight the enhanced benefits, reduced risks, and overlooked elements. Novices often feel disheartened upon discovering that a customer has received a lower price offer; however, seasoned salespeople find ways to leverage price to their advantage.
Strategy 6: Simplify and Enhance the Customer Experience with Your Company.
Ineffective attention to a customer’s needs can lead to the loss of as much as two-thirds of your repeat business, according to research. A genuine commitment to prioritize the customer’s best interests can help you attract business from those who currently choose competitors. Striving to be the most convenient, amiable, and accommodating salesperson in your territory can greatly contribute to your wealth.
Strategy 7: Capitalize on Sales Lost to Competitors.
Expert salespeople learn how to gracefully accept defeat. They consistently leave the door open for future opportunities. There’s no room in professional selling for the mindset of, “You’ll regret this!” or, “You’re making a grave mistake!” Cultivate a gracious attitude, regardless of your outcomes. Extract learning moments from each experience! Successful individuals draw lessons from their setbacks, whereas those who are not succeed merely wallow in negativity. Persist! Adopt a long-term perspective. Keep track of the results from the competitor’s products or services and remain prepared to act if the customer shows signs of discontent. If the customer presents substantial potential for future business, continue reaching out until you can close the sale.
