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Competitor Analysis The Top 5 Findings

Are Your Competitors Responding To Sales Enquiries Like This?

For a client  who manufactures a technical automotive product we recently conducted competitor market research. Eleven direct competitors were contacted with a request to purchase a specific comparable product. During the research these five key findings were identified.

1. Fast Response

  • From receipt of the enquiry only 30 % of the competitors responded within 48 hours (with one providing a very professionally presented response within the same working day)
  • Two of the respondents quickly asked for more information in order to accurately specify
  • The remainder of the competitors did not respond to the first request and needed prompting

2, Quality of proposal / quotation

  • 3 of the proposals were outstanding and offered our client immediate ideas for how to improve the way they presented information within a written document. From the actual content (both written, illustrations and imagery) through to how the technical specification was structured and how pricing information was structured
  • 2 of the proposals simply copied the information provided within the request and added a pricing element
  • The remaining proposals were of very poor quality and purely featured pricing information with no other support information to justify why that supplier should be chosen

3. Follow up

  • Staggeringly only one company followed up after submitting their proposal. I find this quite amazing and for our client provides them with a great opportunity to modify / improve their process. As they are selling a technical product there are lots of opportunities to follow up promptly to make sure that the customer fully understands the proposal and talk through in an informative way the technical elements
  • What a great opportunity to be different (or among the minority) by simply following up your proposal.

4. Discounting

  • Without even questioning on price two companies offered a substantial discount structure within their quotations. In the case of one of the competitors they already had the lowest unit price irrespective of discount so appeared to be giving away margin
  • Perhaps if they had followed up they might not have needed to consider discounting

5. On-Line enquiry

  • Two of the competitors were originally contacted by using their preferred online enquiry form. In both cases neither competitor responded and they had to be contacted by alternative means
  • If you have an online enquiry form how often do you check for incoming enquiries and do you have formalised process to ensure requests aren’t lost / missed

Competitor Analysis – In summary

  • How much do you know about your competitors?
  • If you had more accurate and up to date information on your competitors, would this help you gain sales and generate additional profits.
  • For more information contact Andrew Goode on 01733 361729 or click here. For more information on marketing issues click here

 

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