KEY POINTS:
Understanding how your competitors' work gives you an edge and the ability to differentiate your business. In an increasingly tight market, solely following what others do, and having a 'me too' attitude will mean you are left behind.
"Competitive intelligence helps you work smarter in a market where
every single penny counts. It could be the edge that you need to stay in the game," says Pat Pilcher, Senior Competitive Intelligence Analyst at Telecom.
Five simple, cost effective ways to gather information on your competitors are:
Talk to your customers. Ask them about your competitors, and how they perceive them. The coalface is where you will get some of your most valuable information.
Go online. Do a google search on your competitors, or market. The web holds a lot of information that is easily accessible, and doesn't cost a thing.
Visit their website, or outlets. Find out how they are marketing themselves, and what product offerings or services they have.
Get on their mailing lists. If they have a newsletter, sign yourself, or a friend or relative up, and find out how they are communicating with their customers.
Build networks in your industry. Talk to suppliers, analysts and industry associations to develop an understanding of what is going on in your marketplace. Strong networks can often alert you to up to the minute developments in your market.
Once you have started to build a picture of your competitors, what are the next steps? According to Pat the key stages are What; So what; Now what.
What Gather intelligence and information on your competitors, find out what they are doing, and how your customers perceive them.
So what Work out what the information you have means for you, review it and build a picture of how the competitors in your market are operating.
Now what Work out what you will do with the information you have? What do you need to do to give yourself an edge, and make a point of difference in your market.
Competitive intelligence has become an essential corporate tool worldwide. "Whether you're a small or large organisation having an awareness of your competitors and your market can make a huge difference in how you engage with your customers, and can help you move ahead of the competition," says Pat.
For more information on competitive intelligence go to the Society of Competitive Intelligence Professionals website