In Tenet 8 – Create Value, there was an internal focus: Company history, strategies, and goals. Now, let’s look at external considerations: our competition. Our competition is why we must do more for our customers by being more, better, faster, and different. Competition can come from many different places. Let’s discuss three types of competitors.
1. Direct Competitors:
- Are in the same industry
- Offer the same goods or services
- Touch or sell to the same customer base
Who are your direct competitors? What companies are pursuing your customers? How are they doing it?
It is important to that everyone understands your Company’s direct competitors. It is possible that you and your coworkers will not be able to name all of your competitors so include your manager and Company leaders in the discussion. Keep a list of these competitors and share it with others. Revisit the list often to keep it up-to-date since new direct competitors could emerge.
The next step is to consider what each of your Company’s direct competitors have in common with your Company and in what ways they are different. Viewing each competitor’s website is one way in which you can determine similarities and differences. Again, you may need to consult your manager or Company leaders in the discussion. The more detailed the comparisons, the better able you’ll be to identify your Company’s point(s) of differentiation, i.e., what you do more, better, faster, and/or different.
In addition to direct competitors, there are potentially many other companies that shape our customers’ expectations. There are two other types of competitors that must be considered: indirect and “influence.” As you identify companies in these categories, add them to your list.
2. Indirect Competitors:
- May or may not be in the same industry
- Offer alternative goods or services
- Touch or sell to the same customer base
Example: If direct competitors are television stations, your indirect competitors might be radio stations and newspapers.
3. “Influence” competitors are companies known for a specific focus or process that changes customer expectations or behaviors.
Apple is an example of an “influence” competitor because of its focus on design. Customer expectations of product design have changed as a result of their products. Another example might be Zappos. Zappos is known for its over-the-top customer service. They have raised the bar for all other internet and brick-and-mortar retailers.
Summary
Basically, all companies have the potential to affect your customer’s expectations. As customer expectations evolve over time, your Company must take a focused and active approach to meet and exceed the needs of its customers. For your customers, you must work to be more, better, faster, and different from your competition.
Understanding the current competitive landscape allows you the opportunity to differentiate your Company through your focus on the customer and the quality of the customer service provided.
Over the next week, become familiar with what your competitors offer and identity some ways to differentiate the Company through the actions you take and the service you provide to your customers.
Let’s Engage!
I’m Agent in Engagement Simpson…Gregory F Simpson.
I’m excited about this opportunity to connect with fellow “Agents.” Subscribe to the RSS Feed to receive the latest updates and/or register to comment on posts.
You can follow me @agtinengagement.
Email me at g…@a…t.com.
Learn more about me at www.gregoryfsimpson.com.
P.S. First time here? Welcome to the Agent In Engagement site. Thanks for taking the time to stop by! I hope you’ll explore the rest of the site. Let me know what employee engagement topics interest you.
Other recent Agent in Engagement articles by Gregory F Simpson:
- Employee Engagement Briefing for Week of December 8 – 12, 2014
- The 8th Tenet of Better Engaged Employees – Create Value
- The 7th Tenet of Better Engaged Employees – Skip Satisfaction, Exceed Expectations
- The 6th Tenet of Better Engaged Employees – Know Your Customer and You’ll Be Rewarded
- The 5th Tenet of Better Engaged Employees – Feedback from Customers is a Gift
