How about The Behavioural Competitive Intelligence Model
How about a competitive intelligence model that integrates behavioural thinking with traditional competitive analysis, focusing on perception, psychology, and positioning rather than just features and data? How about this for a behavioural competitive intelligence model:
1. Challenge Assumptions: What industry beliefs are taken for granted? Identify non-obvious competition & reframe the problem.
2. Observe the Human Experience: How do customers actually make decisions? Uncover real pain points, not just competitive comparisons.
3. Identify Psychological Drivers: What biases shape customer choices? Find unseen advantages in framing, scarcity, and social proof.
4. Find the Smallest Competitive Edge: Can we change perception instead of features? Win deals without a massive tech or price advantage.
5. Flip the Competitive Lens: Who are the non-obvious threats? Identify future disruptors and reposition accordingly.
6. Test Small & Learn Fast: What can we test before scaling? Use behavioural data to refine competitive positioning.
7. Create a Competitive Narrative: How do we tell a better story? Build a brand that customers remember and advocate for.
Let me dig a little deeper:
Step 1: Challenge Assumptions (Reframe the Competitive Landscape)
- What are the default industry assumptions about competition?
- Are we defining the competitive set too narrowly?
- How do customers actually choose between competitors?
- What if the real competition isn’t another company but inaction or habit?
Example:
A SaaS AR automation company competes with Billtrust, Esker, and Quadient, but the real competitors might be spreadsheets and manual processes, which many businesses are reluctant to abandon.
So, your biggest competitor may not be another company—it may be inertia, scepticism, or decision fatigue.
Step 2: Observe the Market as a Customer Would
- How do customers experience this category?
- What emotions drive their choices? (Trust, fear, status, ease of use?)
- What are the biggest pain points in switching providers?
- What do customers actually value vs. what they say they value?
Example:
A competitor may claim their software is “easy to use,” but if customers frequently call support, ease of use may be a weakness rather than a strength.
So don’t just compare feature lists—map out the customer’s journey and pain points.
Step 3: Identify Psychological & Behavioural Drivers
- What behavioural biases are shaping customer choices?
- How does framing influence the perception of competitors?
- What role does signalling play in decision-making?
- Are competitors using scarcity, exclusivity, or authority cues to win deals?
Example:
- A competitor might position itself as “premium” not because it has better tech but because it charges higher prices and uses scarcity messaging (“limited onboarding slots”).
- Another competitor may offer “lifetime pricing guarantees” to remove loss aversion as a sales objection.
Competitive intelligence isn’t just about features but psychological positioning.
Step 4: Find the Smallest Competitive Edge (Rather Than Out-Competing on Features)
- Can we change customer perception rather than out-engineering the competition?
- What are small but high-impact differentiators that change how we are viewed?
- Can we reframe an industry weakness into our strength?
- How do we use behavioural nudges to make our offering feel more attractive?
Example:
- If competitors highlight “AI-powered automation,” but prospects are sceptical of AI, positioning as “human-first automation” may resonate more.
- If a competitor has a long onboarding process, reframing your solution as “plug-and-play” could be a game-changer—even if both require similar effort.
Customers don’t buy the “best” product—they buy the easiest, safest, or most aligned with their values.
Step 5: Flip the Competitive Lens (Find the Non-Obvious Threats)
- Who else indirectly competes for the same budget or attention?
- Could a low-status competitor reposition itself and become a real threat?
- What non-traditional factors (e.g., brand perception, customer service, community) matter more than technical specs?
- If an industry outsider entered the market (e.g., Amazon, Google), how would they redefine success?
Example:
- Slack vs. Email → Slack’s biggest competitor wasn’t another chat tool—it was email culture and resistance to change.
- Tesla vs. BMW → Tesla wasn’t just selling electric cars—it was selling status, identity, and a tech-forward brand experience.
Your most dangerous competitor might be outside your industry—or an underdog that redefines the category.
Step 6: Test Small & Learn Fast
- What low-risk experiments can test our competitive position?
- Can we A/B test different messaging to see what resonates more?
- Are there non-traditional ways to collect intelligence (e.g., secret shopping, online communities, customer support reviews)?
- Can we use behavioural analytics (session recordings, customer interviews) to understand why we win or lose deals?
Example:
- Instead of assuming price is the main barrier, test premium vs. discount positioning and track conversion rates.
- If competitors offer “free trials”, test offering “risk-free trials with implementation assistance” to remove activation barriers.
Don’t guess what works—test it in the market.
Step 7: Create a Competitive Narrative (Not Just a Battle Card)
- How do we make our differentiation emotionally compelling?
- Can we tell a more memorable story than our competitors?
- What is our “hero vs. villain” narrative that makes customers root for us?
- What can we own in the customer’s mind that no competitor can claim?
Example:
Instead of saying, “We have better customer support”, say:
“Competitor X gives you a chatbot. We give you a real expert on your first call—because your business is too important for automated support.”
Customers remember stories, not feature lists.
How to Use This Model
Sales teams could use this approach to create battle cards focusing on emotional and psychological advantages, not just features.
Marketing teams could develop campaigns highlighting status, ease, and psychological framing over tech specs.
Competitive intelligence teams could look beyond direct competitors. They could focus on decision barriers, behaviour, and industry reframing.
Product Teams can consider how customers perceive value rather than just adding features.
Final Takeaways
Using behavioural intelligence over raw data gives you a competitive advantage where others aren’t looking.
Competitive intelligence is not just about tracking competitors—it’s about understanding human psychology.
Customers don’t buy products based on specs but based on perception, trust, and ease of adoption. Reframing the problem can be more powerful than out-engineering the competition. Test behavioural nudges before assuming a feature or price change is needed. The best competitive strategy is to tell a better, more emotionally compelling story.
We are Octopus. The Global People-Powered Competitive Intelligence Agency.
Outsmart your competition. Make the unknown known. Octopus helps you gain clarity in complex markets. With clients and tentacles around the world, we deliver sharp, actionable competitive intelligence through a blend of deep primary (HUMINT) and secondary research. If you’re looking to make smarter decisions, beat the competition, and reduce uncertainty, we’re the partner you want on your side.
