Maximize your usage of third party sources when researching competitors. Many will speak with you directly although they may be limited by confidentiality agreements. They may only reveal parts of the picture, but it is your job to put the pieces together into an actionable whole anyway.
Many times I’ve amazed clients with information from secondary research. They could have found it themselves, but they did not have the time or methodology to sort and prioritize the vast quantity of data available. Make sure that your organization has a superb secondary research source. Hire or put on contract an expert who can quickly zoom in on important information and make you more efficient.
While the vast majority of CI primary research is completed successfully via phone in the US, at times, an in-person interview or a site visit is worth the extra time and money. During an assignment years ago, the in-person interviews with our client’s customers and with purchasers of a very aggressive competitor’s offerings revealed that our client’s buyers averaged about ten years older than the purchasers of the rival’s products. With this insight, our client altered its advertising and sales messages to appeal to younger purchasers.
Are your competitors forming alliances to address new markets or compensate for weaknesses? Partnerships are perceived to be a quick way to expand or address problems without the time and funds needed to build it internally. But most alliances quietly disappear as the issues involved in working together outweigh the benefits. Monitor competitive alliances carefully to ascertain their continued activities and real value to participants.
How does your organization evaluate the return on CI? Whether we are in a pause, or a recession, the economy has slowed and companies will begin to examine their costs more closely. Do you have enough information to calculate a financial return on CI? If not, do you have examples of CI successes, and/or support from CI consumers in your firm? This is a good time to remind your management of your value.
Does your company believe that a recession is likely (or already here)? Do your competitors? If so, what are their response plans for an economic downturn; cut costs through expense curtailment and layoffs? Spend more on sales and marketing to capture more business? Knowing which direction can help you respond to their actions.
What are your, your boss’s, your management’s CI priorities for 2008? Do you periodically assess the competitive landscape and review the priorities with your management? If you have not completed this process for 2008, do it now to ensure that your priorities are aligned with your management’s and reflect the most recent information about your marketplace.
Tis the season to be jolly! Enjoy the holiday parties, but watch your comments at events held in public places—you do not know who is sitting or standing right next to you! I personally have overheard several confidential conversations in restaurants or bars.
Is price really the issue in lost sales? Find out by calling organizations that choose rivals. When I have made these calls on behalf of clients, the sources often assumed that I’m from one of the competitors anyway and still provided valuable information. So they will probably speak with you if you call them yourself. You will gain valuable insight on how your company is perceived vs. your competitors.
At trade shows, check out your competitors’ booths. Are they renting more or less space? Sending more or fewer employees to staff their booths? What do their signs say? Are they emphasizing new products or new marketing messages? Is the booth crowded with visitors or not? None of these are major findings, but they can contribute to insight to your competitors.
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