What Is Your Competition Doing?
Do you know how well your business compares to your competition? More specifically, when it comes to how well you deliver Customer Service… Product & Service Offerings… How comparatively Innovative you are?
Also, beyond your competition, how do you compare with others in your industry? Or, how well do you compare in these categories to any business?
I know… these are big questions.
If you do know these things… how do you know? First-hand knowledge? Or, are you relying on hunch? What you’ve heard? Assumptions?
In this scoop of “Sand for Your Inbox” we provide the ideas and tools to help your team gain that first-hand knowledge!
Gaining Competitive Insight
The best way to know the answers to any of these questions, is to visit and experience for yourself. Be a secret shopper of your competition, and of your industry.
We recommend not only touring your direct competition, but also those who compete in the same category. For example, if you are a book store, your competition obviously includes other book stores in your area. But, you also compete with any retailer who sells books. Don’t just compare your pizza place to other pizza places… Your competition includes all dining-out options.
Go beyond product offering to see how you compare with any other business customer service, in-store policies, signage, speed of service, consumer promotions, etc.
You and your team visit area locations or locations in a different market to “secret shop” the competition. Divide into small groups, take notes, and share findings with the rest of the team. Here is more detail:
- Determine what topics / categories you want to explore. Service? Pricing? Product Offerings? Merchandising? In-Store Experience?
- Create a list of locations that excel in a category.
- Plot – on a map – a logical path for visiting these locations.
- Use our suggestions (below) to create your own questions “What To Look For” when you conduct the visits.
- Depending on group size, assign topics and visit locations / take notes.
- Teams return back to your meeting point and spend time discussing findings. Prepare 5 to 10 minute presentation to share back to the entire group.
- Regroup post-tour and discuss finding.
A Few Additional Tips:
- When visiting, be respectful of the operators.
- We don’t recommend going in large groups – it becomes too obvious you’re “shopping” their locations.
- Be careful if you plan to take photos – many businesses get upset when people start using cameras in-store.
- Make your notes outside and away from the location. Think of how you’d feel if someone was in your location with a clipboard and pen writing things down.
- If you can afford it – expand the search to a region where you live… or anywhere in the country. Or, if you don’t want to limit your research and have the budget open up the world for this type of benchmarking.
What To Look For
Here are some starter questions and things to look for.
At Location Entrance:
- Is the entry area clean and inviting?
- What do you notice even before you enter?
- How’s the Lighting?
- Is there Music playing?
- Does the store feel welcoming?
- Does someone greet you as you enter? Does it feel sincere? Welcoming?
- What is the overall feel of the location?
- Is it a place you would feel comfortable to linger – shop leisurely? Or do you get the feel you’re being whisked through?
- Do the products look high quality?
- If possible, buy and try – especially if it is food or drink related. From what you tried, was it as good as you hoped it would be?
- How is the product – food, clothing, etc. presented? Does it look fresh?
- High-end fixtures?Unique fixtures?
- What do they use to indicate everyday offerings?
- Are their menus slick printed, or hand written?
- Does the menu match the brand?
- Are there specials? Limited time offerings? If so, how did they let you know?
Point of Service / Register:
- What is the experiencing as you are served and pay for your product?
- Was the person on the register friendly, nice, courteous?
- Is the POS area clean or cluttered?
- Can you tell if they use Twitter, Facebook, etc? If so, how do you know? Check their social media sites? How many likes and followers?
- Would you bring a friend from out of town to this concept?
- Is it a destination?
- Was visiting this location a memorable experience?
We’ve attached a Store Tour guide we created and used with a client in Washington DC. It features specific locations in the Georgetown area.
The “best” practices you collect allow you to catch up with the competition is doing. This is the “bar” your customers are using as rate good versus bad. When you catch up to the competition, you should create “next” practices. Next practices – raising that bar – will help make you the leader.
So, if you want to know how you compare to your competition there is no need for assumption, check them out firsthand.
Paul (and the Idea Sandbox Team)
This article was first published exclusively for Sand For Your Inbox Members. Join today for free and receive scoops of ideas like this sent directly to your inbox!