Study the opposition

Very few companies have accurate knowledge about their competitors.  Very many companies think they know what their competitors are about.  It is an interesting contradiction - and one that leads to huge wastage for some, and great benefits for others.

A couple of year's ago the director of one of my competitors called me in a rage, complaining strongly about a marketing ploy we had recently introduced.  During the course of this conversation he told me a lot about how his firm saw my firm.  Basically he was saying, "you've got your part of the market and it is x, we have our part of the market, and it is y - let's both get on with our work, and stop hitting each other."

Which was very interesting given that his x and y were completely different from my vision of the two companies.

So following this conversation I arranged for Hamilton House to do what it regularly does  - we did a survey of our customers and their customers.  We looked at our marketing and their marketing.  We studied our web site and their web site.   Then we arranged some mystery shopping, in which people who we didn't know, bought products from my company and his company.   They recorded their experiences - helpfulness on the phone, ease of use of web site, ease of ordering, speed of delivery...   

Of course you don't have to go to enormous lengths - although we found that the further we dug, the more useful information we discovered - but it is vital that you have a clear idea of what the opposition is really doing, and how it is perceived.

Knowing what is going on, and using it.

For example, if you are determined to advertise your products as being able to deliver x y and z, it is fairly helpful to know that your rival is also advertising in the same way.   You may then say, "yes, but his don't do it, and ours do," in which case you need to find a clever way of saying that in your marketing without getting sued.

Or if you discover that your rival takes four times as long to deliver as you do, you might decide to advertise on the basis of "When speed of delivery really matters".   

In the end there is no point in advertising in the same way as your rival, using the same point as your rivals.  You have to differentiate yourself, and you can't do that unless you know what your rivals are doing.  If you really want to do this properly you can hire a competitive awareness company.  But if not, at the very least you should undertake your own analysis.

And yet herein lies a problem.  You might think you know your company - but you may not.  I often find myself asking clients why their customers use them, rather than a rival, and generally the answer comes back like this:

1.    We offer good quality at low prices
2.    We are easy to deal with
3.     We are friendly.

All of which might be fine, but everyone can't have the same distinguishing features - because they are no longer distinguishing.  The point is, I don't know a company that, when pushed, will not claim that a major reason for their customers using them is that they are friendly.  

In an ideal world you can list your major competitors, list their big advantages over you, and list the reasons why people might use them rather than you.

Then you draw up your marketing plan which draws people to you on the basis of what you are and what you can do, which your rivals cannot do.  You don't have to mention them in the adverts.  Just get them on the phone and then you can say, "well of course, if you want the cheapest you won't come to us - but on the other hand if you want chairs (or whatever) that last 10 years rather than two years, then you will consider us.  It depends if you want a short term or a long term solution."

Free analysis of your mailshot

This article is written by Tony Attwood, Chairman of Hamilton House Mailings Ltd.  If you would like to discuss the writing or design of your mailing campaign, or indeed a single mailshot, with Tony, without cost or obligation, just call 01536 399 000, or email Creative@hamilton-house.com   You can also send Tony a copy of your latest advert and he will call you back with his thoughts on how your response rate could be raised - again without cost or obligation.