Chapter 13: Can You Displace Your Competitor?

Yes is good, No is good, Maybe will kill you. We covered that in Chapter 11 and more in Chapter 12. There’s no doubt that Maybe is a dangerous word. Can you grab that marquis account from your toughest competitor?

Maybe.

If you are trying to break into an account that is currently using a competitor’s product or service, you will, sometimes despite solid assurances from your prospect to the contrary, have a very steep uphill battle before you.

But what if your product or service is clearly superior to the entrenched competitor’s product or service?  What if it is so obvious that even a casual observer to the process can see that your solution is a no-brainer?

It has always amazed me how over the years I have seen great effort expended in the pursuit of a new client, only to see it all fall apart at the end, leaving everyone scratching their heads wondering what happened. I remember one large company who was very frustrated with one of their technology suppliers. This wasn’t just a quiet grudge – high level executives flew in to justify why they should be kept on as a supplier. Promises were made, promises were broken, and the cycle repeated itself over and over.

When it was time for a major overhaul of the client’s system, many companies came knocking on the door, offering a better system at a better price. Thousands of man-hours were spent to land this Fortune 50 account, because everyone assumed (Chapter 8) that the customer had reached such a boiling point that they would finally throw out the competitor. But in the end, the client stayed with their existing supplier and system, even though they stated that they knew they would continue to have major problems.

Why would a buyer do this?  How could they justify their decision?

If you remember from our discussion of personality quadrants (Chapter 11), there are four basic personality traits, and an infinite combination of these four traits. Different people will make decisions for different reasons, but in the case of the example above, the client was a plodding administrator who chose to go with the safe decision. We have all heard the old phrase, “You can’t get fired by hiring IBM,” and even though this was a progressive global technology company, the decision to stay the course was made out of fear and uncertainty.

There's that elephant again...

There’s that elephant again…he’s not going anywhere until you address him!

Years later, after reconstructing this example, I realized that the fault was mine, not the client’s. In short, I had not qualified the prospect with a very simple question, which ultimately prevented me from setting the table properly for the sale to move forward. In this example, after building a high level of trust with my prospect, I needed to ask the most obvious question that nobody wanted to discuss:

“You have been doing business with ‘Company X’ for a while and have been happy enough to keep doing business with them. What do you need to see from me that would be so compelling that my company would have at least an even chance of winning your business?”

That wasn’t so hard, was it? And yet it took me years to learn this question, even though the answer to it would determine how (or if) I would proceed with my prospect. Let’s look at two types of answers you may receive:

“Your price needs to be lower.”

This is a Maybe. How much lower do you need to be? Why does it need to be lower? Can it be quantified, or is it just a gut feel by one person who only thinks about price instead of cost and value? If you can get this answer quantified, you will be able to move on if it is a Yes or form a strategy to deal with it if it is a No.

“You need to have a product that has been in use for five years.”

For you, this is either a Yes or No. Either is good, as it is definitive. If the answer is Yes, you can move on to other questions that will help you build your compelling case for change. If your answer is No, like the pricing example above, you can form a strategy to deal with this issue.

Often, the prospect’s scorecard is measuring irrelevant things that don’t really apply to achieving a successful solution. Asking up front what you need to do to be compelling to your prospect will help you not only form a strategy, it may help you complete your qualification process by deciding that pursuing this customer is not a good use of your time.

Walking away from a prospect is the ultimate No. But if you believe as I do, a No is good. The good news is that if you finally reach that ultimate No, you then become free to pursue a prospect that is a better fit for your product or service, instead of being stuck in the purgatory of Maybe.

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