16 March 2006

Boot Your Competitors Out

I predicted in Looking Sideways #2/06 that the ANC was going to wipe the floor with the opposition. Ok, you didn�t exactly have to be �Die Siener in die Suburbs� to call this one, especially since more than half the registered voters took the opportunity to take a break rather than cast their vote. This �voter apathy� strategy played right into the ANC�s hands. Would it be too harsh to use the �no work, no pay� policy on non-voters? ;-) OK, I�ll get off my soapbox now � Switzerland has a 4% voter turnout and they seem to get by.

The ANC�s victory is a harsh lesson that is pertinent to business today. It is extremely difficult to oust your competitor, even if they�re totally messing up, from the company you�re targeting.

Even though it is perceived that the ANC has messed up in certain areas (corruption, HIV/Aids and crime to name a few), it took every main centre by a clear margin. (Except for Cape Town � good luck to Helen Zille � it will take every bit of political smarts to get everyone pulling in the same direction) Sotto voice: It�s easy for the opposition parties to take pot shots at the top dog until they actually get into the delivery hot seat � the realities on the ground may bend them at the knee.

Let�s be honest most of us have to take an inordinate amount of nonsense, lack of service delivery, broken promises, jobs being mucked up, before we even consider booting a supplier out.

How many of us have changed our bank after the first mess-up or even the sixth? Not many, I�d guess. Typically, the only place where we vote with our feet is the retail market. Here we can choose who we support. But when it comes to business-to-business we�re loathe to change � even if things are going pear-shaped.

When it comes to the bigger, more complicated deals, it�s like swimming halfway through the Atlantic � it is the same distance to go back as it is to tough it out and complete the swim. Very few companies will quit a project that is not going smoothly halfway through, will they? And once the project has been completed, they�ll defend it to the death.

Here are some of the issues that keep people �loyal� to suppliers:

• At a psychological level we have to deal with consistency. �I committed to the deal. So I better make it work.�
• Better the devil I know. (that�s probably why Robert Mugabe�s still in power).
• It�s going to cost me too much to pull out of this deal.
• I don�t want my superiors to know that I�ve made the wrong decision.
• My supplier is doing a great job and I love it.

So, how do you get an existing supplier booted out so that you can get into an account and do your magic.

The short answer is that there�s no easy answer. If your competitor is doing a good job it is nearly impossible to pry them out of an account. And if they�re messing up it is nearly impossible to pry them out of an account.

I remember reading a book by Harvey MacKay (Swim with the Sharks) where he said that your primary objective is to be #1 or #2 in the account.

It stands to reason that if you�re #2 in account when #1 is booted out, you get to pick up the pieces and claim your reward.

Based on this premise, your best strategy is to  keep top-of-mind with the prospect (and pray that your competitor really mucks up).

How do we keep top-of-mind:

-          You need to have a CRM system like Maximizer, Goldmine or ACT in place. It�s time those Access databases and tickler boxes were thrown out.

-          You need to have a system for communicating with your prospects

-          You need to have letters, emails and brochures that go out to your prospect on a regular basis

-          Invite prospects to functions etc.

-          Keep the prospect updated with new trends

-          DO, WHATEVER IT TAKES TO KEEP YOUR COMPANY ON THE RADAR

Dislodging a competitor from an account is difficult. But it can be done if you have patience, proper planning and a modicum of luck.

Copyright 2006 by Jacques de Villiers 

This article may be copied or republished with the following credit:

"By Jacques de Villiers, Inspirational Speaker, Johannesburg, South Africa.
+27 (0) 82 906 3693   www.jacquesdevilliers.com "

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