Keeping abreast of competitive movements is critical in fast-paced, evolving markets; whilst B2C business have large teams and departments dedicated to Competitor Intelligence (CI), its value to B2B organisations should not be underestimated. Competitor benchmarking is a cornerstone of strategic planning, helping companies navigate through market analysis, proposition development and market entry. At White Space Strategy, we’ve integrated B2B competitor benchmarking into our core services because we recognise its value in providing a crucial leg up businesses often need.
When is Competitor Benchmarking Useful?
Our clients frequently pose questions to us that directly relate to their competitors’ actions:
- “Should I be concerned about the noise Company X is making in the market?”
- “Our competitors are undercutting us, what can we do about it?”
If you suspect your competition are doing something differently – that’s an obvious indication that competitor analysis would be beneficial.
Equally we’re often engaged to answer questions seemingly unrelated to the competition entirely:
- “Why isn’t my leading product selling as expected?”
- “Why are our renewals falling year-on-year?”
Both of these types of questions signal clear scenarios where competitor benchmarking is valuable. Whether you’re trying to understand a market shift or identify an internal issue benchmarking against competitors can provide valuable insights and potentially save time (and money!) that might otherwise be spent on lengthy, irrelevant investigations.
What Can I Learn from Competitor Benchmarking?
1. Answer the Known Unknowns:
- Customer Perceptions: How do customers view your strengths and weaknesses compared to your competitors? Are your unique selling points clearly differentiated in the market?
- Emerging Threats: Are there new competitors or shifts in existing competitors’ strategies that could threaten your position?
- For example, a recent B2B competitor benchmarking project with an automotive finance provider revealed that competitors were significantly advancing the digitization of their customer journeys. This insight was crucial in highlighting the potential impact on our client’s price competitiveness, leading them to prioritise developing their own digital customer experience over other actions.
2. Uncover Unknown Unknowns:
- Market Gaps and Disruption: Is there a unique capability your company possesses that competitors haven’t leveraged yet? Is there a space in the market nobody has mastered that you’re prime to target?
- Areas Where You’re Falling Behind: Are there elements of our proposition that fall below the level of competition? Do we know which elements and how it compares?
- For example, Remote, an HR solution provider, only realised through competitor benchmarking that offering a free trial was a common practice among competitors in their market, which they then choose to adopt to meet market expectations.
How Do I Achieve a Return on This Insight?
Once you’ve completed a thorough competitor analysis, you’re equipped with insights into 1) Your strengths and weaknesses relative to the competition and 2) The emerging threats and potential market opportunities.
With this information, you can:
- Implement Quick Wins: Like Remote, you might introduce features such as free trials to match competitors.
- Refine Sales and Marketing Strategies: Develop targeted messages that highlight your strengths against competitors, leveraging real customer perceptions of your USPs.
- Plan for the Long Term: This might include developing new products, investing in technology, considering mergers and acquisitions to close gaps or seize new opportunities, and reevaluating the long-term goals of your product or business unit.
How White Space Can Help
White Space Strategy has conducted hundreds of B2B competitor benchmarking exercises across Financial Services, Energy, Paper & Packaging, and Manufacturing sectors. These exercises are crucial for businesses that aim to stay competitive and innovative. If you’re considering a competitor benchmarking exercise and unsure where to start, reach out to our team today.