Why Competitors Can Help You Build Business

What do you think of your competitors?  Do you view them as the bottom feeders who take clients and business away from you?  Are they worthy adversaries who bring value to the clients they serve?  In the professional services industry, the general picture of competitors looks like a battlefield with winners and losers.  We are either the victors or the defeated.  This picture is one reason business developers in professional services firms read The Art of War.

Therefore, why have I implied in the title that competitors can help us build business?   First, we have to step back from competitor as enemy attitude.  Any strategic sales process will include an analysis of competitors. The analysis usually tends to focus on positioning.  How are your competitors positioned with the client you are pursuing?  Do you know their strengths and weaknesses?  How do these compare with the strengths and weaknesses of your firm?  The analysis is one piece of the strategic sales process.  However, this is not the basis for how competitors can help you build business. It is more than positioning.

Since competitors offer similar services and seek the same clients, you can use them as a form of “inside the box” market research.  Smart business developers will use the homework done by their competitors to strengthen client relationships.  It is always harder to reinvent the wheel then it is to borrow the wheels from another car. Sometimes your competitors have pretty nice wheels.

If you are clear about your brand, your services and service delivery, you might want to consider competitors as partners in certain situations.  If you are already the biggest dog in the dog pound, you might not be worried about a larger entrant into your marketplace.  Size, strength and limited service offerings might be reasons to team with a competitor.  In addition, competitors might be different in specific markets and client groups.  When a project comes along which requires some services you don’t provide, but are provided by a competitor, it might be time to start a conversation.   Enjoying success in a new market where you have failed in the past is a good reason for talking with a competitor.  Of course, your firm must first get past the fear of helping a competitor gain ground with your existing clients or in established markets.  The partnership has to be a win-win for all parties, including your client.  After all, we have heard the story about the snake that asked the frog to help him cross the river.  Yes, some competitors will  bite you after you have helped them cross the river.  This part of the process is about being selective and having done your homework.

Vision is another reason for using competitors to strengthen client relationships and build business.  Are there any blind spots in your client strategy?  Everyone has blind spots.  However, your blind spots might not be the same as your competitors. Your competitors might have an understanding of your clients that you have not considered.  Maybe it has something to do with values or preferences that you have not considered.  Think of it as a zero-based review of their marketing and service offerings.  Careful research is required to know these things.  You can use your clients and your competitor’s clients to gather this information.  A client focus group administered by an independent marketing agency could also help.  Gather your top clients and prospects together to discuss their feelings, perceptions and experience using the professional services in your industry.  During the course of the discussions, specific competitors, their brands, services, marketing and delivery will be examined.   Finding out what your clients want in their professional service firm is priceless.  Bottom line: You need your competitors to expand your vision.

Finally, I am not suggesting you create a cozy relationship with your competitors.  What I am suggesting is that the more you know about your competitors, the better you will be able to serve your clients.  Sun Tsu knew this was the best strategy for winning a war.  Today, it is the best strategy for winning more business.