Selling into a company already captured by
your competitor is a lot like that. Believe it or
not, a company that's buying from your
competition can be an easier sell than selling
to an organization that doesn't have a current
solution. Because your prospect already
recognizes the value of your product and has a budget for it, there's one less hurdle between you and the sale.
Contrast this scenario with the education and effort involved in pursuing a relationship with a prospect who's convinced they're doing just fine on their own, and it's clear: Prospecting in a company "owned" by your competition is to your advantage.
But selling successfully in a competitive situation requires homework. The way to steal your prospect's heart is to know as much about the company as they do, if not more, says Chris Wellington, account executive for Network Appliance in California. "Ultimately, it's just being really prepared," he says. "Before making a sales call, always do your research," agrees Greg Arnold, senior vice president and director of global services for ProLogis, a provider of distribution facilities and services. "There is so much information out there that's easily available to the general public. You should find it, read it, and know it." Here's your assignment list:
Who's the competition?
Sometimes it's obvious if your prospect is using a competitor. "In our business, it's easy to know when a prospect is using a competitor because the prospect is occupying space at a competitor's site," says Arnold. Other times, though, you may need to do some research. If your product is part of a system or is being sold to an OEM, you might be able to get a brochure or other marketing material that lists the current suppliers. This information may also be available on the company's Website. Or you can take the direct route and ask the prospect.
What do they eat for breakfast?
Before you can compete, you need to figure out your game plan - and your plan will depend at least in part on what your competition is doing. You'll want to know everything you can about their offerings, their salespeople and their pricing, so you can position yourself to your best advantage. Share competitive information with other salespeople on your team, particularly those who may have come from another company. Leverage your relationship with current customers to find out what you can about the salespeople who call on them, and file this information away.
Who's the customer?
Just as you want to know everything you can about your competition, the more data you can amass about your prospect, the better. Wellington recommends doing research on the company's financials - are they making money or losing money? - as well as on the organization's background. Knowing whether you're dealing with a well-funded start-up, for example, or a spin-off of a larger company with one foot in the grave gives you some idea of the structure of the company as well as the role of the person you're calling on, Wellington explains.
What are your competitive advantages?
If you're lucky, your sales team will have an existing body of competitive knowledge that you can draw upon when positioning yourself. If no such database exists, now's the time to create it. Talk with your manager, your fellow reps and the folks in your marketing department. Find out where your strengths and weaknesses lie, and create positioning statements for your market segments vis-à-vis your various competitors.
Who are your references?
The more proof of your capabilities you can provide to your prospects, the better. One of the strongest pieces of evidence you can offer up is references from existing customers. "If you're going to walk into a competitive situation, have your products been sold into a like company?" asks Wellington. If so, case studies or success stories can bolster your claims of how your solution will work for a particular industry. If no such documents exist, just being able to name-drop current customers will help your cause.
What's your approach?
When you know your solution is clearly superior to the one the prospect's currently buying, there's a strong temptation to cut down the competition - but you do so at your own peril, say the pros. While you want to leverage your competitor's weaknesses, do so without throwing stones. "Talk about the value that your company or your product would provide, but don't negative sell against the competition or what the company is currently using," advises Arnold. Remember: If you tell your prospect why their current solution is the pits, you're in essence telling them they made a big mistake and have lousy judgment. You're better off showing why your solution can offer greater business value.
Even when you've done your homework, you won't always convince your prospect that you've got a better offer. If they're not willing to switch, make it your business to know why. "Don't be afraid to ask for feedback about your sale or about the product you're offering," says Arnold. Then take that feedback and use it to make your next sale that much stronger.