How Competitors Target Your Customers and Prospects
Strategies to anticipate and counter competitor moves in B2B sales.
1Assumption of Competitor Activity
Assume your competitors are cold calling your existing customers regularly. This is a standard practice in competitive markets. If they are doing it effectively, it poses a significant threat. Even if your customers are satisfied, competitors may still find opportunities to sway them. The yield might be low, but the effort is often justified in competitive industries.
2Marketing to Lost Deals
It’s almost always worth continuing to market to lost deals if you have the resources. Customers who are happy with one vendor may still switch over time due to changes in circumstances or dissatisfaction. Competitors often maintain databases of contract renewal dates and run targeted campaigns around these times to capitalize on potential switches.
3Aggressive Outreach During Downtime
Competitors aggressively reach out to your customers during periods of downtime, security issues, or other vulnerabilities. These moments are seen as prime opportunities to persuade customers to switch. Offering big discounts or buy-out deals can be particularly effective in these scenarios, as seen with Zoom’s strategy against WebEx.
4Champion Change Risks
The departure of a customer’s internal champion is a high-risk moment. Competitors are likely aware of such changes and will jump in to steal the customer. This tactic is effective because the new champion may have different priorities or preferences, making them more open to switching vendors.
5Steal Teams and ROI
Once your company grows large enough, it may make sense to assign resources specifically to steal deals from competitors. These ‘Steal Teams’ focus on targeting lost deals and can be highly effective. While the ROI may not be huge, the cumulative impact of winning back customers can be significant.
6Competitor Marketing to Lost Deals
Competitors continue to market to customers and deals they’ve lost to you. They already have the contact information and deal basics, making it easy to maintain efforts. It may take 2–3 years to win a lost deal back, but persistence often pays off, especially if customer satisfaction wanes.
7Missed Opportunities
Many startups move on once a deal is lost, which is a mistake. Lost deals represent missed opportunities for re-engagement. Competitors who continue to nurture these relationships can eventually win them back. Treating customers incredibly well is crucial to prevent such losses.
8Strategic Importance of Retention
Customer retention is a critical aspect of competitive strategy. Anticipating competitor moves and proactively addressing vulnerabilities can safeguard your customer base. Assigning resources to monitor and counter these efforts ensures long-term success in competitive markets.
Original article: SaaStr — How Competitors Target Your Customers and Prospects