5 Ways to Build Competitive Advantage in Sales
The best salespeople really prove their value when they’re faced with the challenge of selling a product that is virtually the same as a million other products out there.
What the most successful sales reps do (besides using Spiro’s AI-powered sales automation CRM) is find their own competitive advantage in sales.
Back in the 80s, Michael Porter, a professor at Harvard Business School, wrote a brilliant book on this very topic. His main point was that to beat your competition, you have to either be cheaper than the other guys, or be different from them, thereby justifying a higher cost. It’s that simple.
1. Be the Lowest Option Available
Offering your customer the lowest price is often “option A”. But the first option isn’t always the best. Having a bargain basement price can make your product appear not just low in cost, but also low in quality.
Although this option is pretty straightforward – offer them the best deal – it’s not what I would recommend. The best salespeople show value even when they need to be creative to make it show. It’s more about having competitive advantage by differentiating yourself from your competition.
2. Provide Superior Customer Service
Let’s say you are selling something pretty basic, like ball bearings. To me, a ball bearing is a ball bearing is a ball bearing. If you can’t show your advantage by differentiating the product, then perhaps you can provide the customer with superior service.
Make sure you keep them informed of important dates throughout the sale, putting them in touch with the shipping department to ensure timely delivery. Question them on their concerns, so you can proactively alleviate any stresses they may have, and work to provide them with the appropriate, thorough answers they deserve.
3. Make Your Personality the Differentiating Factor
We all want to do business with people we like. It’s just plain human nature. If your customer is going to part with their hard earned cash, they’d probably prefer putting it into the pocket of someone with a likeable personality.
Try to make your winning charm the differentiating factor. Be relatable. Try out a little humor – be fun and funny. Make them like doing business with you, and soon YOU become the competitive advantage in your product.
4. Perception is Reality
One way to convince a buyer that your widget is better than the rest, is to flip your pitch back on them. Make them sell themselves on you and your product.
Try this: ask a prospect what specifically about your product do they see as advantages over the others out there. In talking through why they love what you’re selling, they will begin to believe that your product is the best. Basically, they will talk themselves into buying from you.
5. Wrap it in a Bundle
Another tactic is to bundle the primary service, or product, you are selling with secondary services, to make the whole package shine a little brighter.
A few years back, I was working with a client to decide on the best prospect qualifying service for their particular company. The top three contenders had the same basic pricing structure – it was a pretty set price based on the number of records you wanted them to validate. But one vendor was able to gain the competitive advantage by suggesting a bundling of additional services they offered. These “add ons” raised the cost a bit, but made their primary product even more enticing, and became the clear winner for my client.
Finding Your Own Advantage
Sales is about finding a way to rise about your competition. If you’re selling into an oversaturated market, your job is tough, but not impossible. Differentiating yourself from your competitors is key.
Please share in the comments below any personal tips on ways you have successfully found your competitive advantage in sales.
