Question

Topic: Strategy

Converting Competitors Customers

Posted by Anonymous on 7/16/2007 at 2:03 AM ET 250 Points
Hi,

My company has a service (online knowledgebase) which we have been providing in a B2B market for the past 5 years. Our biggest competitor has about 80% of the market share (being that they have been in the industry for over 35 years). I have full confidence in the service and also know its potential. When we approach customers with our service which is just as good, the reponse we get from companies is "we are happy and accustomed to using their service". We have looked at price point reduction (though we were not in sole favour of it, based on the fact that it might reduce credibililty of the service) and have also come out with a few offers. How could we look at converting our competitors customers?

--Rohn
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RESPONSES

  • Posted on 7/16/2007 at 3:17 AM Member
    How about offering a free trial to a select number of companies who are currently with the competitor? You could use the approach that you are absolutely confident of your product and service and to demonstrate this, you'd like to extend a free trial, in an effort to harness feedback from eminent clients.

    If you can convert at least one of these clients, get some testimonials and use this when approaching new business.
  • Posted by CarolBlaha on 7/16/2007 at 3:42 AM Member
    Customers/prospects will always say "I'm happy with my present supplier"-- its a standard stall and not unique to your situation.

    You should read a bit on sales, there are many ways to counter this objection. First and foremost- -know in your mind why a customer should do business with you vs the competitor. "Just as good" isn't a differentiator. Low price is a loser game.

    Before starting into your pitch, ask more questions up front Find out what they like and dislike about their competitor. A standard swing comment like "a lot of people say that at first, but once they get to know how we differentiate, they see how we can compliment the program you have in place", or "the value we add", or??

    Since you are in business for 5 years and have some clients, build some case studies. Interview your clients to find why they chose you.

    There is plenty of business for two companies. And many stories of small companies overtaking large, lethargic corps. No matter if you are a commodity product, you can differentiate.

    Sell Well and Oftentm
    Carol
  • Posted on 7/16/2007 at 4:27 AM Author
    Dear Erik/Carol,

    Thank you for your answers. First to Erik. We have talked about offering a free trial, infact we offer free trials to all companies before they take the service, but with competitors companies we prolong the duration of this trial.

    We also have customer feedback and testimonials from companies. But i like your thought on getting a customer who used the old service and ranked ours better than theirs. We have a quote on the same lines to the effect that one of our customers was able to find information only in our database and in none others. We could work on that aspect none the less.

    Now to Carol. Indeed its a standard response a customer would give to get rid of a sales person, but our targets are very focussed. We also provide a comparison to those customers who happen to be using a competitors service of how our service is better (without lying). More over, we offer value adding after sales service which none of the other companies provide. We do have case studies and have taken our own customer testimonials as well.

    What I would be more interested in knowing is that, given that all our sales material is in order, what more could we do to capture our competitors customers?
  • Posted by CarolBlaha on 7/16/2007 at 10:36 AM Member
    I wasn't talking sales literature. Literature is a tool but it doesn't sell -- it won't get the word out. Salespeople sell. People buy from people. You have to get out there face to face, find the pain, and provide the solution.

    Carol
    Sell Well and Prosper tm
  • Posted by steveg on 7/17/2007 at 4:47 AM Accepted
    Ok... I'm a creative, so bare with me Carol.

    Rohan,
    I'm going on a visual here.
    You need to go to the fourth floor of this office building to talk with a consultant who has the tools to help your business goals. Giddy with excitement, you walk accross the polished marble floor to the elevator bay and push the 'up' button. The familiar ding is heard and the doors of booth elevators open simultaniously. You could choose either, they both perform the same job and each will take you were you need to go. You look closely at both elevators. The one on the left is filled with old tired suits, bitter faces and overweight thinking. The elevator on the right has but two young executives, clean and upright. The choice is clear.

    This is your differentiation. You are fresh, clean, new and forward thinking. Your sales people, collateral, and product should reflect that. Grow your business with new prospects and mavens. Let them be your mercenaries to get your competitors customers. Be transparent...create viral campaigns...find a way to make the percieved value of your service higher than your competitor.

    Think back to when Washington Mutual was winning over their customers, free checking wasn't a new concept, but it was pressed it into our minds just like Chrysler's cupholders in minivans. No cost to them, but new and clean and easier with percieved value.

    Steveg
  • Posted by steveg on 7/17/2007 at 4:48 AM Member
    Ok... I'm a creative, so bare with me Carol.

    Rohan,
    I'm going on a visual here.
    You need to go to the fourth floor of this office building to talk with a consultant who has the tools to help your business goals. Giddy with excitement, you walk across the polished marble floor to the elevator bay and push the 'up' button. The familiar ding is heard and the doors of booth elevators open simultaneously. You could choose either, they both perform the same job and each will take you were you need to go. You look closely at both elevators. The one on the left is filled with old tired suits, bitter faces and overweight thinking. The elevator on the right has but two young executives, clean and upright. The choice is clear.

    This is your differentiation. You are fresh, clean, new and forward thinking. Your sales people, collateral, and product should reflect that. Grow your business with new prospects and mavens. Let them be your mercenaries to get your competitors customers. Be transparent...create viral campaigns...find a way to make the perceived value of your service higher than your competitor.

    Think back to when Washington Mutual was winning over their customers, free checking wasn't a new concept, but it was pressed it into our minds just like Chrysler's cup holders in minivans. No cost to them, but new and clean and easier with perceived value.

    Steveg
  • Posted on 7/24/2007 at 1:16 AM Member
    Hi!

    I think most of the Answers here would help u frame a approach which would eventually be fruitful.. however i just want to add one more aspect to it.

    While giving a extended free trial you can pitch in a Discount to Users with the Competition, or even offer a small trail instead of the "Extended Trial" and offer a more lucrative discount .

    Moreover if this starts taking off (and assuming yours is a renewal - subscription model) your can offer discounts only on extended subscriptions, even a "Discounted Money back is a good idea ( You only charge for the period used + a small fee etc etc. and refund the rest... but only keep this for Conversions and not NON - USERS.

    Sekhon
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