We offer our thoughts on the 6 reasons when Competitive Intelligence is essential.
Your industry rarely gets less competitive. As technology develops, it will get more and more complicated and faster and faster.
Unless you’re waiting for the return of gas streetlighting competitor and market insight will remain very important. For you to make better decisions. Decisions to make you more successful.
Competitive Intelligence is the collection, collation and analysis of information. To help you find out what’s happening. Explain why it’s happening. Outline how things could develop, and offer possible options available to make better decisions. Competitive Intelligence helps you avoid surprises. Think more moves ahead, minimise uncertainty, differentiate and stay ahead of the competition.
Competitive Intelligence is important when defending your space or attacking a new market. It helps you understand what’s working for your competition. What has failed for them? In which direction they are heading. And what opportunities for competitive advantage are there.
Competitive Intelligence should be an ongoing exercise. After all, if you look out the window and see if it’s raining or not. And three weeks later, you dress in a t-shirt, shorts and flip-flops based on your previous window data. You should not be surprised when its raining cats and dogs. And the “well it was dry the last time I analysed the weather 3 weeks ago”.
Here are six reasons when Competitive Intelligence should be top of your list once we have dried out:
1. A market with a few significant competitors
Competitive Intelligence isolates what products are on the market. It isolates features and benefits, their popularity, and it’s target market. And services to level up the field. This activity enables you to develop your plans and take some market share off them. Competitive Intelligence will result in understanding the products/services they are working on. Allowing the time to conduct and pincer movement and head them off at the pass. If you know when your competitors will launch a new service, you are in a strong position.
2. New competitor joining your market
A new competitor with a new product or service can damage your market share and profits. Use Competitive Intelligence to change your marketing tactics. And to adjust your marketing message to counter the possible new threat. And to look at your pricing strategy to confirm it is still valid.
3. Entering a new market
A fresh market with few competitors also needs the power of Competitive Intelligence. By looking for the strengths and weaknesses in similar markets and products/services. What do these markets do to challenge your thinking? What best practice do they offer? Is there anything you can learn from this market?
4. A very competitive and busy market
You are in a market where there are many competitors, products or services. Ensure you can differentiate to make yourself heard from the crowd. Competitive Intelligence will isolate your differentiator, your benefits to the customer. And also:
- The solution to your potential customer’s pain
- Your pricing strategy
- Find gaps in the market
- Understand how you can position yourself in the market
- How you can increase your market share
- Gain insight about competitors and trends
- Find challenges and opportunities
5. Budget time
It can be a challenge for small or emerging companies to know where to spend their budget. Uncovering how rivals set their budget. And in turn, where to invest in it yourselves can help your strategic plan. You may see that a competitor is budgeting for a high spend in a certain area. You have to ask why is this the case and must determine if you should match them to protect your position or counter attack. Is there a budget for five new sales people for a particular product? What does that tell you about the company and products next move?
6. Marketing message changes
They say talk is cheap. Well, not when your competitor is doing the talking and your customers are listening. It will become costly for you, especially if you are not looking or listening.
Your market is like a river. It is always moving and ebbing, and currents are taking you down to the depths and bringing you back up again. Your messaging needs to be fresh. Competitive Intelligence lets you know how you and your competitors messaging is performing. Insight to develop your own innovative and unique message. Not knowing your competitor’s sales message, then how can you prepare your sales teams? They will be fighting against a competitor they don’t know anything about.
6 reasons when Competitive Intelligence is essential
So as discussed, your industry rarely gets less competitive. As technology develops, it will get more and more complicated and faster and faster. We offered our thoughts on the 6 reasons when Competitive Intelligence is essential.