Question

Topic: Strategy

Unseat My Non-competitor For Mindshare W/ Audience

Posted by Anonymous on 125 Points
My company just released a financial software application to an audience who is familiar, and at times, loyal to another software brand who has been selling to them for 13 years. The other brand provides client management, inventory control, and expense reporting features.

What it does not provide is the down-to-earth financial information the small business owner depends on. (operating budget balances, account allocation schedules, deduction summary, and most of all actual profit and loss.) Despite our efforts to communicate that we are not competing with the other brand our sales people are often dismissed and told, “We already have ‘the other brand’.” My sales team is preparing for a large convention where 65,000 members of our target audience will be. Any suggestions on how to say, “We’re not them, we’re not competing with them. We’re offering you the piece of the puzzle that you’re missing”?

Thank you!
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RESPONSES

  • Posted by Blaine Wilkerson on Member
    Often times these situations appear much more difficult than they have to be. Much of you description contains the answers you seek.

    First of all, if your software provides the SAME functions as the other WITH the additional features, you have a hard sell.

    Why? You have to consider the monetary and training investment involved with the use of the current software. For example, I use Dreamweaver MX to format the websites I design. Every 6 months to a year, Macromedia or someone else comes out with a similar program with more bells and whistles. Do I run out and buy it? No. Why? Because the new features do not justify the cost and my time.

    In your case, your features would appear to be worth the time to learn and implement. However, if your program contains the same features as the other as well...again, it is difficult to convince someone to purchase.

    An important and obvious strategy for the sales team is to emphasize on the new features ONLY!! Maybe mention it can do everything the other can in a brief quote, but sway away from it. Concentrate, focus and CONTROL the converstion toward the new features and the benefits.

    Unfortunately, again assuming your software has the same function as the other, even if you have unique features, you are indeed competing. There is no way around it.

    The ONLY way I can see (with limited info) is if you offer the unique features ONLY, and make it so it can integrate with the current software. This, of course would take everything back to the drawing board and require licensing negotiations with the current provider, who would likely implement their own similar functions rather than co-brand with you.

    One method you can try is:

    1. Admit to yourselves you are competing.

    2. Follow in the footsteps of the DISH Satellite strategy: Offer a discount to "trade-in" the old software for "better" stuff.

    3. Include free and/or discounted training and installation with your product.

    #1 will help you get the "non-compete" monkey off your back, #'s 2&3 will give an incentive for the customers to not only listen to you, but give you a shot. Theses techniques can be elaborated and morphed of course, in order to fit your company's profile and abilities.

    In summary, I would not focus on trying to convince everyone you are not competing, rather focus on what you are offering, why it is essential, and what kind of promotion/incentive (i.e. free training, etc) are you willing to provide.

    Feel free to send me an email if you require more formal, detailed assistance.

    Good Luck!

    -- Jett Enterprises
  • Posted by jcmedinave on Member
    Hello,

    Don't try to fight with the inevitable. If the people make relation between both software, !pay attention! And be prepare to compete. The more you will deny, the more you will approach. The best way to win the enemy is to face him and use your strengths. ¿Are you really different? Yes, then advertise (search for new sailing ways: customer recommendations, theatre presentations, fashion events, applications shows,..) . No, then develop it (prize, service, value, guarantee, applications, feasibility, saving time, easy to manage, support,...).

    Bye,

    Juan Carlos
  • Posted by telemoxie on Accepted
    You have described your software as "a financial software application" and so everyone will reply, "We already have one" (and very few will want to change it). But your software may be something different, an "operating budget balance reporter" or a "profit and loss dashboard" which bolts on to their current financial software. Now, that doesn't sound too exciting to me, but I'm not a financial guy. If you can identify a few exciting features your prospects really want, keep hammering on those. If you can identify specific market segments who can really benefit from those features - even better.


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