How to Use CRM Software For Competitive Analysis - The Basics

In spite of the current economic environment, peopledetailed and useful information. You can record why
are still buying products and services. However, withyou lost an opportunity, what solution you lost it to and
sales volume lower and margins tighter than they havewho you lost it to, for example:
been for a while, competition for each piece ofWhy?: When you win or lose an opportunity start
business is substantial. Competitor analysis using yourrecording why? This is easier to do if you use a series
Customer Relationship Management (CRM) systemof standard responses, which will make analysis easier.
can give you a significant competitive advantage andThese could include: "price", "reference ability", "better
this could be pivotal to success.product", "geography", "better presentation".
The key to beating competitors is to be a little bitWhat?: If you are in a market where you are not up
better than them and to work a lot harder than them.against like-for-like products or services then try to find
Knowing who your competition is and what theirout what it is your competitor is selling.
strengths and weaknesses are can only help you.Who?: Record who won each sales opportunity.
However in order to gather the information to carryIf you use all three of these in conjunction then you will
out competitor analysis there is an internal culturalbe able to get a clear picture of who you key
change needed as sales people need to begin to askcompetitors are and what you need to improve on.
who they are against in terms of competition. MakingIn order to facilitate this type of competitor analysis,
this standard practice can take a bit of getting used to.you need to have a reliable, company-wide CRM
Customer Relationship Management (CRM) Solutionssystem and the internal culture to ask for the
can be used as a central point for storing informationinformation, record it and analyze it.
about your contacts and competitors, giving all yourA well thought-out properly designed and implemented
employees the ability to access key data when theyCustomer Relationship Management System can help
need it. Once you have a CRM system you canyou with this, putting processes in place and giving you
record all information relating to an opportunity, but youthe tools to explore and exploit your data.
need to ensure you link each opportunity to competitorThis article has covered the basics of using CRM
records in CRM.o If you win the deal, the CRM systemsoftware for competitive analysis. However, modern
will know who you have beaten.o If you lose the deal,CRM systems are extremely powerful, and can be
you need to tell the CRM system which competitortailored to your precise business or organizational
won.needs. The advent of 'xRM', Social CRM, CRM 2.0,
This will give you enough information to beginintegrated systems and business intelligence
competitor analysis. For example, how many timesapplications extends the power of CRM systems
have you been beaten by and in turn won againsteven further. Correct deployment of these applications
each competitor. Is one competitor dominating yourenables competitive analysis to become highly
market?advanced, giving businesses that employ them a major
Once you have a CRM system in place and eachadvantage.
opportunity is linked, you can start to build up more