By Jason Carter

    Today, more and more companies rely on the practice of Competitive Intelligence (CI). But just what is CI?
    The definition varies greatly from one company to the next. In large corporate settings, CI professionals are charged with legally and ethically collecting, analyzing, and applying information about the capabilities, vulnerabilities, and intentions of their competitors, and monitoring developments within the overall market environment. Good CI leads to actionable intelligence that drives strategy and helps a company gain a competitive edge.
    While it sounds like quite the operation, it doesn’t have to be. Partners can implement a few steps that – with a small time and financial investment – will help them become more effective in competitive sales situations.

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Study the Usual Suspects
    Competitors you frequently run into will know about you and probably have some perspective on how you are going to approach a sale. Are you accounting for that? (Pun intended!)
    Consider the example of a competitor that often accuses Microsoft® and Microsoft Dynamics Partners of selling technology for technology’s sake. When that competitor has the opportunity to talk to the prospect before you do, they downplay the importance of the latest technology and emphasize that they are more focused on solving real business issues, regardless of the technology that may be required to do so. If you come in after them and your first message is about the Microsoft technology stack (a truly compelling advantage for Microsoft Dynamics), you may be stepping into a trap. You should absolutely tell that story, but tell it in terms of the real business benefits it provides, and consider how to tailor that message to a nontechnical buyer.
    This is, of course, but one example of the tactics you’ll run into. Your organization can build knowledge of the primary tactics used by frequent competitors by implementing a system for analyzing wins and losses. At the very least this means having your sales team record their perspective on why they win and lose each sale, and any competitor messaging of which they were aware. Have them consider whether certain issues, questions, or sales objections come up more frequently or at different times in the sales cycle when a particular competitor is involved. If so, it may be an indicator of how that competitor is influencing the sales process to their advantage.
    If possible, get the customer’s perspective directly. What issues compelled them to make the choice they did? This information can sometimes be difficult to get from a deal you lost. Consider having prospective customers – ones that you won and lost – interviewed by a third party, either through the Microsoft Dynamics win/loss process or through your own vendor. Talking to a third party may make it easier for the prospective customer to open up and share the reasons why they did or did not choose the Microsoft Dynamics product and your organization as its provider.

Go Back to That Lost Customer
    You work hard to win business. Part of that work is establishing relationships with individuals within your prospective customer’s organization. The more you know them, the better you understand the issues they are trying to overcome, which in turn is reflected in your value proposition. Some of these contacts become internal coaches for you and your product, and are instrumental in securing a win. And should you not win the deal, keep in mind that these contacts could be quite valuable to you in the future.
    Does this situation sound familiar to you? You are on the short list in a highly competitive sales opportunity and the competitor has not only discounted the product but also seems to be coming in impossibly low on the services side. You know the implementation, customization, integration, and training needed to get the customer off on the right track and ensure a positive ROI cannot be achieved at that cost.
    Despite your best efforts, you do not win this deal. After the selection is made, talk to your internal coaches about the reasons you were not selected, and inform them you will be in touch again in the near future. A few months down the road, that customer may be feeling the effects of having only part of their data migrated, going over budget on integration work, or not having enough training to help their people effectively use the new system.
    Granted, things may be going fine (in which case you’ve got some thinking to do in terms of how you approach your services), but if the competitor cut corners on the implementation, things are likely not fine in the customer’s eyes. In that lost customer you may have just found a great reference. The next time your competitor uses the same tactic, your prospect will have someone to call who can share their experience with an implementation plan focused more on price than on success, and why they would not make the same choice again. Good for you, bad for them.

Research the Unknown Competitors
    Analysts have estimated that as many as 10,000 software companies globally offer products in the same category as Microsoft Dynamics. In a market that fragmented, you are sure to compete against companies of which you had never heard of prior to that sale. While you are unlikely to ever know one of those competitors as well as you know the usual suspects, knowing at least a couple of facts about them increases your chance for a win.
    There is no shortage of information and no valid excuse for flying blind into an opportunity. The problem lies in finding the information, and in allocating time to analyze it. In both cases you have to consider the opportunity cost. Is your time best spent digging up information on a competitor you may not see again, or in continuing your discovery process with the prospect?
    The easiest solution to this problem is to hire an expert. Let’s say that expert is me. In over seven years in a Market/Competitive Intelligence role at Great Plains and Microsoft, I received thousands of questions on over 500 different competitors, allowing me to establish best practices for finding and analyzing information on all of those “other” competitors that may cross your path. Be it once or a dozen times, knowledge is power in all situations.

Moving Forward with your CI Program
    You now have the steps necessary to start creating a CI program for your organization. Tailor these steps to work for you and your team and you will see results. Remember, the only companies that don’t need competitive intelligence are those with no competition.