Competitive Intelligence can have a huge impact to the bottom line of a business. This knowledge comes in many forms, and ultimately, it is the application of human intelligence and human logic that reveals the value in the data, the trends and the inconsistencies.
With this in mind, the “aha” competitive intelligence moments will often reveal themselves where you least expect to uncover them. Here are some questions to help you find the “aha” in non-traditional places, creating competitive advantages for you and your organization:
1. Does it really matter what the competition is doing?
Competitive Intelligence is not just about looking at what your industry competitors are doing; it is about seeing your business through a completely new set of eyes.
Better stated: The activity of your peers is only one part of the equation. In fact, case studies show that many innovative breakthroughs came from non-industry competitors. Yes, know the industry competition and, do position yourself favorably. However, do not spend so much time on the competitor activities that you forget to focus on the activity of THE most important piece of the marketplace: the customer!
2. Can you make lemonade out of lemons?
We know that every production line output includes first quality and imperfect items. Does your business allow you to develop a secondary distribution channel for the “seconds”? For example: “ding and dent sales” for furniture or appliances or consignment stores for manufacturers over-runs.
The lemonade concept has been successfully applied to situations where fixed costs render heavily discounted, last minute offers a preferable option for the business. Last minute vacation websites (think Travelocity, Cheap Tickets) alongside of theatre ticket offerings (think Play-by-Play and Theatre Mania in NYC) have trained many consumers to plan these activities at the last minute, thereby allowing themselves an experience that may otherwise be unaffordable.
3. Do you have a diversified reading list?
We’ve all been trained to regularly read the daily newspapers and the industry journals for our business specialties. However, Best Practices are often industry-agnostic; can you imagine any call center manager disputing the value in real time call monitoring and feedback loops? Reading industry journals from any other industry but your own; reading political articles that you do not agree with and occasionally scanning a forever classic Dr. Seuss book….can move your mind into new directions and thought patterns that can impact your business?
4. Does this really have to be a seasonal item?
Back in graduate school, I prepared an advertising campaign for matzo as an all year round cracker choice. Fast forward to today’s metropolitan grocer and you are likely to find boxes of matzo year-round. In a similar fashion, Gold’s Horseradish has created another category of condiments and eliminated horseradish as a seasonal product.
5. How can you change consumer behaviors?
Slowly is the pessimist’s answer. By speaking to emotions is the more logical answer. Create a competitive advantage for yourself by focusing on the emotional level appeal.
Forget the product benefits – Focus on the storyline. This is another great example of seeing a situation through a different set of eyes. Madison Avenue examples of this:
- Nike is not about shoes and running shorts. It is about a state of mind: Just Do It. Get out and exercise
- The L’Oreal tagline” Because You’re worth it” moved the emphasis off of the products and onto the consumer. Yeah, I am worth it – I am beautiful
- What if we could apply this to our children’s chore-list? Imagine: “A neat room is a higher test score”
- Zappos is a customer service company…that happens to sell shoes!
Competitive intelligence is not just about looking at what your industry competitors are doing; it is about seeing your business through completely different sets of eyes. And using these new and varied viewpoints to maximize opportunities.
Original posting: FIVE KEY Questions on Competitive Intelligence. New Places to find the “ah-ha” by @sharonlewisnyc #EQlist buff.ly/1gsE3Dz via @CASUDI