So I’ve always been asked by people whether or not they feel there is any value in comparing their business to anyone else’s.
Now my answer to this question is always a yes. So today I thought I’d take a few minutes to really explain why.
Comparing your business, especially to competitors, could offer really valuable insights. Firstly, it can help you identify your strengths and weaknesses. Secondly, it can provide you with inspiration and ideas Thirdly, it can help you understand what is happening in the marketplace because you’ll spot trends more rapidly and it will give you insights into how other businesses handle challenges. And fourthly, it will give you something to benchmark against.
Ultimately, all of this is going to help you make better business decisions, build a stronger brand and stay ahead of that competition.
Okay, so you’re sold on the idea of checking out your competitors. Well, at least I hope you are! So how do we go about doing this?
Now there are several ways and the more structured you are in your approach, the more likely you’ll be to make sure that you get the most from the experience.
So, I’ve got my five tips for getting the most out of the time that you spend checking out the competition.
Number one, become a customer.
Nothing tells you more about what your competitors are doing than to become one of their customers yourselves. If you run a restaurant, go and eat at your competitors. If you sell cars, go and have a test drive at a rival showroom. This sort of process is often referred to as mystery shopping and it can actually be really enlightening.
I’ve visited craft shops all over the world and I’ve ordered crafting materials from all sorts of online businesses. And I’ve been amazed at how differently I’ve been treated with everything from speed of delivery to the packaging, the store display, it can vary enormously. Sometimes it’s good, sometimes it’s bad, but it’s always valuable information to know.
Make an inquiry, see how they respond, ask for a quote, look at their price list, whatever you offer, find out how and what they handle in that area of the business. Never assume that they do what you offer or you do what they offer, okay?
Now number two, talk to your customers.
Ask them why they buy from you and who else they buy from. Very few customers just shop 100 % at one place but it’s good to know why they choose to buy from you or elsewhere. It might be price, convenience, opening hours, speed of delivery, the list is almost endless. It can also be something as simple as not knowing that you can provide the same goods or services.
I’ve got a friend who’d used a boat valetor of all things for almost 10 years before he discovered that the guy also did electrical repairs and engineering. So he’d been using three separate suppliers and he changed all that when he found out that one person could do everything.
Number three, I want you to read what people are saying about your competitors.
It’s really easy to get fixated on what customers are saying about your businesses and of course it’s important so don’t stop doing that but how much time do you spend looking at what your customers say about your competitors?
Now good or bad, it’s going to give you valuable insights. You’ll often see patterns emerging, stuff from the customers that they really like and things that might need to be improved. You’ll also get a sense of how other businesses respond to criticism and praise. Do they ignore it? Do they engage with it? Try to bury it? Put your customer head on and imagine how you would feel about the responses they provide.
Tip four, I want you to look beyond your own industry or sector because your direct competitors might be obvious, but if you really want to innovate, look outside for inspiration.
If you’re a hair salon, look at the best hotels to get ideas on how to meet and greet a customer. If you’re a driving school, look at how the best academic organisations supplement face-to-face learning with bite-size online learning.
Okay, so now that we’ve got some ideas on how we can check out our competitors, it’s time to think about what you’re going to do with that information.
Have a little bit of a think about what you now know and what we can do is, number one, promote your strengths. You’re now confident about where your competitive advantages lie, so I want you to make sure you communicate them clearly and consistently to your customers.
Secondly, work on your weaknesses, don’t ignore your flaws. Where you see your competitive weakness, you need to strengthen it so that it doesn’t become a performance limiter.
Thirdly, I want you to borrow from the best. Learn what works for these other businesses and then make it a part of your offering as well. And then fourthly, make a comparison a habit. So mystery shopping, reading reviews, talking to customers, can’t be a one-off. It needs to become second nature and it needs to be something that you never ever stop doing.
In summary, do not be one of those people who thinks that their business operates in a bubble. Checking out the competition will make sure that you stay ahead of the competition, not fall behind them.