Building a Competitive Analysis Your Team Will Actually Use to Win Deals

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A well-constructed competitive analysis can be a game-changer for your sales team, but too often, competitive analyses are created and forgotten, not because they lack valuable insights, but because they aren’t actionable. To build a competitive analysis framework that your sales team will actually use, it must be structured, accessible, and aligned with their daily challenges. By focusing on providing practical insights that directly inform strategy and tactics, you can empower your team to win more deals.

In this guide, we’ll walk through how to create a competitive analysis that doesn’t just gather dust but becomes a vital tool in the sales process.

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1. Identify Your Key Competitors

Before diving into creating a competitive analysis, you must clearly identify who your key competitors are. These can include:

- Direct Competitors: Companies that offer similar products or services targeting the same audience.

- Indirect Competitors: Companies that may not compete head-to-head but still target the same customer base with alternative solutions.

How to Identify Competitors:

- Ask Sales Teams: Your sales reps likely know which competitors come up frequently in conversations with prospects.

- Customer Feedback: Talk to customers to learn which other products they considered before choosing yours.

- Online Tools: Use platforms like Ahrefs, SimilarWeb, or SpyFu to identify competitors through online search data and website traffic.

Once you’ve defined the main players, you can begin building out profiles for each one.

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2. Collect Key Competitor Information

Next, gather the most relevant data for each competitor, focusing on areas that will directly impact your sales strategy. Information to collect includes:

Product and Service Offerings:

- Feature Comparison: Understand what features your competitors offer and how they compare to yours. Identify both strengths and weaknesses in their product lineup.

- Pricing Models: Gather information about pricing tiers, discounts, and bundles. Knowing where your competitor sits on the pricing spectrum helps you position your product effectively.

Target Market and Positioning:

- Target Customers: Who are your competitors targeting? Are they aiming at the same customer segments as you, or are they focused on a different niche?

- Messaging and Positioning: Analyze how competitors describe their products on their website, marketing materials, and sales presentations. This will reveal how they’re trying to differentiate themselves in the market.

Sales and Marketing Tactics:

- Sales Approach: Understand how competitors sell their product—do they focus on a direct sales team, self-service model, or channel partners? This helps your team anticipate how they might compete in sales conversations.

- Content and Messaging: Evaluate their blog, case studies, white papers, and other content to understand how they communicate their value proposition.

Customer Feedback:

- Online Reviews: Platforms like G2, Capterra, and Trustpilot can offer valuable insights into what customers think about your competitors’ products. Look for recurring themes in both positive and negative reviews.

- Social Media and Forums: Monitor social media platforms and industry forums to see what customers are saying about competitors.

Financial Health and Market Share:

- Funding and Financial Stability: Keep an eye on news about funding rounds, revenue growth, or layoffs. A competitor struggling financially may become less of a threat over time.

- Market Share: If available, gather data on market share to understand where your competitors stand in relation to you.

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3. Create a User-Friendly Competitive Analysis Framework

Now that you’ve gathered your data, it’s time to organize it in a way that’s both accessible and actionable for your sales team. The key here is to create a living document that sales reps can easily reference before and during conversations with prospects.

 Essential Elements to Include:

- Competitor Profiles: Create a summary page for each competitor with the most critical information, such as core products, pricing models, and key differentiators.

- Comparison Charts: Provide side-by-side comparison charts of features, pricing, and services to give sales reps an easy reference point when prospects ask how your product stacks up.

- SWOT Analysis: A simple Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis for each competitor provides a high-level overview of their current market position and potential vulnerabilities.

 Tips for Keeping It Useful:

- Regular Updates: Competitors evolve, and so should your analysis. Make sure it’s updated regularly, ideally with someone from marketing or product management assigned to the task.

- Accessible Format: Use tools that your sales team is already comfortable with, such as Google Sheets, Excel, or a CRM-integrated system. The more seamless the experience, the more likely your team will use it.

- Focus on Key Differentiators: Emphasize areas where your product excels compared to the competition. This ensures that your sales team can quickly highlight those differentiators in conversations with prospects.

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4. Focus on Actionable Insights for Sales

The most effective competitive analyses go beyond surface-level data and provide actionable insights that help sales reps win deals. Here are a few ways to make your competitive analysis more actionable:

Handle Objections Proactively:

Include common objections prospects may raise about your product compared to competitors and provide clear rebuttals. For example, if a competitor’s product is cheaper but lacks advanced features, equip your sales team with talking points that emphasize your product’s superior functionality and long-term value.

Tailored Sales Plays:

Develop specific sales plays that your team can use when competing against particular competitors. These should include suggested messaging, key differentiators, and strategies for overcoming objections unique to that competitor.

Include customer success stories where you’ve won deals against the competition. Highlight the reasons why the customer chose your product over the competitor’s and how your solution solved their pain points better.

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5. Use Competitive Intelligence to Inform Strategy

Competitive analysis isn’t just a sales tool—it’s also critical for informing your broader product and marketing strategies. By regularly reviewing how your competitors are evolving, you can:

- Identify Market Trends: Spot emerging trends based on how competitors are positioning themselves or adjusting their offerings. This could highlight new opportunities for your product.

- Refine Your Messaging: If competitors are shifting their messaging, you may need to adjust yours to maintain differentiation. For instance, if several competitors begin focusing on sustainability, you might double down on your product’s unique features.

- Guide Product Development: If you notice that customers frequently praise a competitor for a specific feature, it may be worth considering for your own product roadmap.

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6. Train Your Sales Team on Using the Competitive Analysis

Creating a competitive analysis is only half the battle—you also need to ensure that your sales team knows how to use it effectively. Conduct regular training sessions that focus on:

- How to Use the Framework: Walk your sales team through the competitive analysis and show them where to find key information.

- Handling Common Objections: Provide scripts or role-play scenarios that teach your sales reps how to respond to competitor-specific objections.

- Knowing When to Walk Away: Sometimes, competitors may have an overwhelming advantage in specific scenarios. Train your sales team to recognize these situations and when it might be better to focus on more winnable deals.

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Conclusion

Building a competitive analysis your team will actually use to win deals involves much more than just gathering information—it’s about presenting that data in a way that’s actionable, accessible, and tailored to the needs of your sales team. By providing clear insights, easy-to-read comparisons, and practical sales plays, you can equip your team with the tools they need to outmaneuver competitors and close more deals.

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When your competitive analysis becomes a core part of your sales strategy, it not only helps your team win deals but also informs broader marketing, product, and business decisions, ensuring you stay ahead in a competitive market.

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