Rarely does any business, online or not, have zero competitors. Indeed, it is quite likely that by the time an online business is launched, competitors are already aware of it and have researched the products and services. When planning a new online business, it is necessary to aim to know who your competitors are and how much of a threat they pose to your business. In business parlance, the term is 'competitive intelligence.' Here are things to consider how to obtain vital intelligence about a competitor:
Become a Competitor’s Customer
One of the most intelligent ways to monitor competitors is to become their customer. No doubt, the intelligence gained from ‘being on the inside’ far outweighs any money spent on becoming their customer. A word of caution: when you become a customer, keep your identity a secret while you consider the following issues:
- Was it easy to place an order with the competitors?
- What was the level of after-sales services provided by them?
- Were you automatically subscribed to their online newsletters?
- Are these competitors using their newsletters to market their other products?
Many online business owners who have become customers of their competitors have reported that, at times, their competitors do not offer after-sales services at all; alternatively, the after-sales services offered are not up to par. These online business owners have used this intelligence to improve the quality of their own after-sales services. Most rewarding is that, by acting on such intelligence, their own business sales soar.
Business Strategy for Your Critics
At some stage of running their businesses, some online business owners will inevitably face dissatisfied customers. It is important to prepare an action plan before launching an online business. The plan provides support in dealing with customers who might not be satisfied with your products. Here are some basic points to include in response to unhappy customers:
- Start with an apology to customers – show concern that customers are not happy with the products they purchased.
- Reiterate customers’ complaints to show that you understand their complaints.
- If customers have not stated what they hope to achieve by making the complaints, ask them.
- If customers want a refund on the purchase price of the products, be prepared to offer a full or partial refund.
While it might hurt to hear some of the criticisms leveled against your online business, such reactions are powerful information that can be used to get a competitive edge. For instance, if you find that someone is ‘bad-mouthing’ you and your products in a newsgroup or forum, you can set the record straight immediately and minimize any damage caused.
Do remember that your customers, who are probably aware that you’ve put your heart and soul into creating your online business, will require just as much courage to criticize your products. Accept and treat such criticism in a professional manner. The key here is to mind what was said rather than who said it.
Take the time to gather competitive intelligence on a regular basis if your online business is to survive and thrive. It is to your advantage to learn from your competitors, keep your customers happy and act on the feedback you receive about your products. In so doing, your online business will be well on its way to a roaring success.
Source
- Kahaner, Larry. Competitive Intelligence : How to Gather, Analyze, and Use Information to Move Your Business to the Top. Touchstone (February 11, 1998)
Aneeta Sundararaj - Aneeta Sundararaj is an established freelance writer and published author who writes well-researched articles on various topics.
