Establishing an Effective Competitive Analysis Program

Transcription

1 Preparing for Battle: Establishing an Effective Competitive Analysis Program Pragmatic Marketing Steve Piper CEO CyberEdge Group 1

2 about us Experts in technology product management and product marketing Specialize in training Trained hundreds of thousands of people at thousands of companies since

3 presenter Steve Piper 20+ years of high-tech product marketing/management experience Formerly with Citrix, NetIQ, Oblicore (CA) and Sourcefire (Cisco) Co-founder & CEO of CyberEdge Group Proud Pragmatic Marketing alumnus 3

4 About CyberEdge Group High-tech marketing agency Founded in vendor clients 20+ consultants 10+ awards Key consulting services Competitive analysis Content development Market research reports Custom books/ebooks PM/PMM retainers Sample Clients Connect to: cyber edge.com 4

5 Webinar Objectives Identify key elements of a successful competitive analysis program Gain tips for optimizing your CRM to capture accurate win/loss statistics Learn the benefits of, and strategies for, maintaining accurate competitive intelligence Understand the value of conducting customer win/loss interviews Prepare your sales team for battle! 5

6 Agenda Risks of underinvesting Competitive analysis program goals Elements of a successful program Suggested plan of action Q&A 6

7 Before We Begin 7

8 Reality Check What competitive analysis programs typically are What competitive analysis programs should be 8

9 The Risks of Underinvesting Inferior product(s) Lost revenue Slowed sales cycles Flying blind you don t know where to invest! 9

10 Competitive Analysis Program Goals Maintain a living record of truth for both (1) product planning and (2) sales enablement Know where to make product investments Equip your sales team and channel partners with accurate information and sales tools Increase win rates Shorten sales cycles 10

11 Key Elements of a Successful Competitive Analysis Program 1 2 Configure CRM to capture accurate win/loss stats Generate quarterly and annual win/loss reports Aggregate and maintain competitive intelligence Conduct periodic customer win/loss calls Create impactful competitor battlecards Conduct regular sales training sessions 11

12 #1: Capture Win/Loss Stats Create Competitor Pick Lists Create a pick list of competitors as an opportunity field Fields include: All known competitors None Unknown Other Describe in notes section Require sales rep to select at least one option when opportunity is forecasted at 30% or higher IMPORTANT: Configure CRM to prevent the opportunity from being saved at 30% or higher unless one competitor option is selected. IMPORTANT: Do not make this a freeform field! 12

13 #1: Capture Win/Loss Stats Create Three Closed Opportunity Statuses Closed Won = Opportunity was won, potentially against one or more competitors Closed Lost = Opportunity was lost to ONE competitor Closed No Decision = Opportunity went cold or duplicate opportunity is closed IMPORTANT: Configure CRM to prevent opportunity from transitioning to Closed Lost unless an opportunity winner has been selected. REMEMBER: You can beat multiple competitors, but you (usually) lose to just one! 13

14 #1: Capture Win/Loss Stats Require Primary & Secondary Reasons Closed Won/Lost Reasons Superior product functionality Superior product performance Superior product usability Superior third-party integration Superior pricing Personal relationship Other Describe in notes Closed No Decision Reasons Contact gone radio silent Contact left the company Lost budget Company acquired Company out of business Other Describe in notes IMPORTANT: Configure CRM to prevent opportunity from transitioning from Open to Closed, unless primary and secondary reasons have been selected. 14

15 #2: Generate Win/Loss Reports Maximize Accuracy Export quarterly closed opportunities from CRM into master spreadsheet. Create regional spreadsheets with the following three sections: Closed Won Closed Lost Closed No Decision IMPORTANT: Ask each regional sales VP to audit his/her closed opportunities for accuracy prior to assembling win/loss reports. 15

16 #2: Generate Win/Loss Reports Create Win/Loss Reports Win rate by competitor Average won/lost deal size by competitor Average won/lost sales cycle by competitor Reasons won by competitor Reasons lost by competitor IMPORTANT: Specify win rates by both dollars and deal counts. You might win 80% of the deals against a competitor, but only win 30% of the dollars. IMPORTANT: Track win rates globally and by geographic region. 16

17 Sample Global Win/Loss Report 17

18 Sample Regional Win/Loss Report Region Comp A Comp B Comp C Comp D Comp E Comp F East 35% 38% (5/13) 67% 79% (11/14) 15% 45% (5/11) 30% 60% (3/5) 100% 100% (8/8) 28% 56% (5/9) West 65% 55% (12/22) 85% 75% (9/12) 34% 44% (7/16) 97% 75% (3/4) 83% 80% (8/10) 78% 50% (1/2) Federal Mid-Tier EMEA LATAM APAC 100% 100% (2/2) 29% 47% (7/15) 70% 68% (13/19) 78% 78% (7/9) 86% 86% (6/7) 54% 67% (6/9) 68% 80% (4/5) 88% 76% (16/21) 79% 73% (8/11) 55% 60% (3/5) 16% 56% (5/9) 100% 100% (1/1) 60% 44% (7/16) 100% 100% (9/9) 100% 100% (8/8) 100% 100% (1/1) 92% 80% (4/5) 53% 60% (9/15) 0% 0% (0/1) 31% 33% (1/3) 43% 50% (1/2) 83% 79% (11/14) 77% 78% (7/9) 100% 100% (3/3) 29% 40% (2/5) 73% 75% (9/12) 100% 100% (5/5) 47% 67% (2/3) - 16% 50% (1/2) Notes: Top % = Percentage of dollars won Bottom % = Percentage of deals won 18

19 Sample Reasons Lost by Competitor Comp A Comp B Comp C Comp D Comp E Comp F Broader range of products Lack of customer references Politics/personal relationship Poor or failed evaluation Price Superior Functionality Superior Performance Superior Usability 19

20 #3: Aggregate Competitive Intelligence Create a Feature Comparison Matrix Product form factors Product components Product pricing/licensing models Key features Key performance statistics IMPORTANT: Don t be afraid to add rows (data points) for competitor capabilities you don t yet have. IMPORTANT: This spreadsheet is for internal use only. Useful for product marketing to prioritize sales tool creation and sales training resources. Useful for product management to help prioritize new product functionality. 20

21 #3: Aggregate Competitive Intelligence Log Public & Non-Public Intelligence Column A: Data point descriptions Column B: Your Product Column C+: Competing Products Document all available cells using publicly available information, such as datasheets, white papers, analyst briefs, third-party test reports Update Feature Comparison Matrix (spreadsheet) anytime you and/or your competitors release a product update IMPORTANT: Leverage a third-party to generate primary/non-public competitive intelligence by interviewing technical subject matter experts. 21

22 #4: Conduct Customer Win/Loss Calls Sample Questions In your own words, why did you choose X over Y? Who was involved in the decision-making process? Who made the ultimate decision? On a scale of 1 to 10, rate how X and Y met your needs. How would you compare the sales process of X and Y? Did you speak with any X and Y customer references? If so, how did they go? How has your experience with X been so far? Is there anything else I should know about your selection of X over Y? 22

23 #4: Conduct Customer Win/Loss Calls Conduct Win/Loss Interviews Interview a minimum of 5 wins and 5 losses for each major competitor. 10 wins and 10 losses preferred. Repeat quarterly or at least annually. Leverage an outside vendor so customers will be more forthcoming. Select a vendor with technical expertise. Vendor should compile findings into a report and present the report to key stakeholders. IMPORTANT: Select a vendor with consultants having a technical foundation in your product category. 23

24 #5: Create Competitor Battlecards Customize Battlecard Template Three key themes/ silver bullets Key capabilities comparison table Solution components table Your advantages Competitor advantages (with responses) Competitor FUD (with responses) Setting competitor traps IMPORTANT: Battlecards are for sales and channel partner use only. Create competitive white papers, product collateral, PowerPoint slides, and other sales tools to be shared with customers. 24

25 #6: Conduct Sales & Channel Partner Training Quarterly Competitive Training Sessions Provide training against each major competitor to every internal and channel partner salesperson and SE at least once per quarter Teach your audience how to plant landmines when you are the first vendor to engage the client Reinforce three key themes (i.e., silver bullet ) for each competitor Update competitor battlecards as you and your competitors update their offerings IMPORTANT: Don t just focus on your advantages. Address your competitor s advantages, too, but equip your audience with appropriate responses. 25

26 Your Action Plan Configure your CRM to capture accurate win/loss stats Create quarterly and annual win/loss reports by competitor Aggregate competitive intelligence into a living spreadsheet Conduct quarterly (or annual) customer win/loss calls Create customized, compelling competitor battlecards Conduct quarterly sales trainings 26

27 Special Offer for Webinar Attendees Send an to to request a free sample battlecard template. 27

28 questions 28

29 contact Rebecca 29

30 Thank You for attending! JAN FEB MAR Product Portfolio Win/Loss Stakeholder Communications Join us for next month s webinar: Getting Executive Buy-In APR MAY JUN Requirements Distinctive Competencies Collateral JULY AUG SEP Product Profitability Referrals & References Innovation OCT NOV DEC Customer Acquisition Customer Retention Market Problems