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There is basically one correct answer to this question, and the competitive positioning that you use can make the difference between moving the sales process along versus derailing the conversation.<\/span><\/p>\n <\/p>\n \u201cCompetitor X is a good company, but…\u201d<\/b><\/p>\n <\/p>\n You should commit this phrase to memory and use it often. Everyone needs a frame of reference, to compare to something they are familiar with or other options they are considering, whether they be potential customers, employees, or investors. How you respond can be more critical than you think.<\/span><\/p>\n <\/p>\n After speaking positively of the competitor your prospect asked about, explain how your company is better, ideally using a differentiator or area of specialization that Competitor X doesn\u2019t have (or doesn\u2019t focus on).<\/span><\/p>\n <\/p>\n You should shift the focus to what makes your product or service unique and beneficial for the prospect. Then explain how your solution can specifically meet their needs better than the competition.\u00a0<\/span><\/p>\n <\/p>\n By speaking to your company\u2019s unique selling proposition (also referred to as unique selling points), while not dismissing the competition, you will build trust and credibility.\u00a0<\/span><\/p>\n <\/p>\n If you find yourself pitching investors, this is a related but somewhat different version of the question — sometimes they want to hear how your company is similar to a business they are familiar with, not necessarily differentiated.\u00a0<\/span><\/p>\n Investors analyzing many potential investments are often guilty of \u201cpattern matching\u201d to quickly fit you into an area they understand (and hopefully want to put money into), or to make sure you are \u201cthe same\u201d as a company that already was funded \/ successful.<\/span><\/p>\n If you criticize the competition, however, it may give investors the impression that a) your company is not doing well, and you are jealous of the competitor or b) that you haven\u2019t properly evaluated the competitive threats to your business, and are not taking the competition seriously.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n Customers are important to get this right with, as a savvy buyer will ask about the competition for the same reason they ask about discounts — mainly to see how you respond, as well as gather information. If you speak badly of the competition, it reflects negatively on you as a salesperson. Negative comments can even create the impression that you are threatened by the competitor, so they may in fact be a better option than your company.<\/span><\/p>\n <\/p>\n Even if the competition has a terrible product or no support, you should be very careful about saying anything negative about the competitor. Find a way to allude to the competitor\u2019s problems in a roundabout way, if you must, but tread lightly.<\/span><\/p>\n <\/p>\n Above all, be honest about the differences between your product and the competition. Transparency builds trust and can differentiate you from others who might criticize or overpromise.<\/span><\/p>\n <\/p>\n While you don\u2019t want to overdo it or give the impression that a competitor might be a better choice than your company, there are a number of surprising advantages to speaking favorably of your competitors in a sales conversation.<\/span><\/p>\n <\/p>\n <\/p>\n <\/p>\n Prospect<\/b>: “How does your product compare to [Competitor]?”<\/span><\/p>\n Salesperson<\/b>: “That’s a great question. [Competitor] is a reputable company with some good features. However, our product stands out in a few key areas that might be particularly beneficial for you. For instance, our advanced analytics feature can provide you with deeper insights into your data, which can help optimize your strategy. Additionally, our customer support team is available 24\/7, ensuring that you get the help you need whenever you need it. Customers rave about them in our online reviews.<\/span><\/p>\n Can you tell me more about what specific needs or challenges you’re looking to address? That way, I can provide a more detailed comparison tailored to your requirements.”<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\nHighlighting Your Unique Selling Proposition (USP)<\/b><\/h2>\n
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\n \n \ud83d\udd99 Pitching Investors<\/b><\/h3>\n
Stay Positive and Professional<\/b><\/h2>\n
Benefits of Speaking Highly of Competitors<\/b><\/h2>\n
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\n \n \ud83d\udd99 Practice Sales Lesson<\/b><\/h3>\n
When a Competitor\u2019s Criticism Generated Leads<\/b><\/h2>\n
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