Competitive sales are sales techniques designed to help a company gain an advantage over it’s primary market competitors. Using a number of sales strategies, businesses carefully assess and respond to the activities of other companies in the same market, to find ways of “out-selling” other brands. “Competition sales” play an important role in supporting your company’s efforts to direct consumer choices and drive profits.
What are Competitive Sales?
Competitive sales, or competitive selling, is a strategy companies use to outshine the competition in their chosen market. The process involves understanding your position in a current industry, and how it relates to the position of your competition, so you can increase your current standing.
Using various sales strategies, often centred around the process of highlighting unique value propositions, companies can gain the business of customers in the same niche as their competitors. The right sales strategies will actively convince your consumers that your company has a better service or product to offer than an alternative company. In many cases, your sales campaigns may involve actively comparing your solutions to those offered by your competitors, so you can highlight what makes your offering better.
For instance, imagine two companies were attempting to gain the same share of customers in a niche market, like the sale of ceramic thimbles. One business may attempt to outshine the other with comparison videos, testimonials from previous customers, and industry accolades.
What are the Benefits of Competitive selling?
A competitive sales strategy can significantly increase profits and drive companies to produce higher-quality items. When you’re comparing your offering to that of other brands, you’re more likely to conduct regular SWOT analyses of your portfolio, to ensure you have something unique to offer.
Evaluating your competitors and learning which of their features drive the most sales will also give you a better understanding of your audience. Business leaders can use this competitive knowledge to plan future product developments and upgrades. Competitive selling:
Improves brand perception: Using competitive selling techniques like comparisons and reviews can help your business to come across as more authentic and trustworthy. This can enhance the overall positive perception towards your brand.
Enhances product development: Regularly assessing your target audience and competition pushes business leaders to make positive changes to their product development. To appeal to your customer’s “quality standard”, you may choose to increase the quality of your goods or update your service with additional offerings.
Increases profits: Competitive selling, like many sales techniques, can help companies to increase revenue output. Competitive sales can increase your flow of customers, but it also gives you an opportunity to build loyalty among your customers.
Tips for a Competitive Sales Strategy
To successfully engage in competitive sales, companies need a fundamental strategy. It’s important to prepare extensively, by collecting as much information as you can about your target audience, your competitors, and the overall market for your product or service. Tips for success include:
Research thoroughly: Collect as much information as you can from market research, reports published by your competition, and conversations with customers. You can also use competitor analysis tools to find out which of your competitor’s products are currently gaining the most attention, and what customers say about them.
Conduct market landscape analyses: Conduct a complete analysis of the market landscape for your industry, where you identify and research the key players in your specific sector or niche. This will give you a firmer understanding of who your competitors are.
Use your history to guide you: Use your past successes in your industry to influence how you compete going forward. Consider which aspects of your business are most successful and double down on these. You can use win/loss analysis to determine what works for your customers and what might be driving clients to your competition.
Remember, having the right team of competitive sellers will make a huge difference to your chances of success. Competitive sales professionals need to be excellent at positioning the company correctly in the eyes of customers, selling unique ideas, and convincing leads of the value that a business has to offer. Competitive sellers can also effectively research the market and adapt to changes in it.
Can You Use Competitive Sales?
If you know how to effectively gather and analyze information about a specific market, than anyone can leverage the benefits of competitive selling. The strategy is particularly valuable among large corporations who want to maintain their public image and separate themselves from upcoming competitors. Competitive selling can help larger companies to continue growing and developing new products for their target audience.
Start-ups and small businesses also benefit extensively from competitive selling. Start-ups can use competitive selling tactics to determine the best way of building their customer base and increasing customer engagement. Smaller businesses can use these tactics to improve upward mobility and increase their chances of competing with larger brands.