7 ways competitors go after your clients (and what to do about it)
"Stealing" is such an ugly word, and it implies you were helpless to stop your competitor. But you're not. Here's how to be proactive.
“Stealing clients” is such an ugly expression. Put another way, it is a safe assumption your best clients are another firm’s best prospects. There is probably more than one firm going after them. How might they do it? What proactive steps can you take to retain their business?
Things competitors might say to your clients
It is important to bear in mind the similarities between the sales aspect of business and courtship. In the early stages of a dating relationship, both parties put lots of effort into being attentive and responsive. Once married and the years roll by it is not uncommon for one or both parties to take the other for granted.
Now let’s get back to business relationships and what a competitor might say to your client.
1. “When is the relationship reviewed and put up for competitive bids?” Even if a firm is satisfied with their current vendor relationships, they usually have an annual review process that starts with RFPs — requests for proposals. Your competitor calls within your client’s company seeking to find when this happens, so they can get a chance to present.
Be proactive: You cannot prevent them from being considered, but you can remind your client what you do for them and the level of service they provide.
2. “Have you surveyed your employees about their level of satisfaction?” Your competitor might even offer to design the survey and help administer the reporting of results. How questions are worded is often a big issue.
Be proactive: You have either been encouraging your client to perform this activity internally or you provide it as part of your package.
3. “When was the last time you heard from your advisor?” This is often an excellent strategy when prospecting individuals. Your client might not be able to remember! Your competitor then provides a standard: “In volatile markets we try to speak with each client at least once every quarter.”
Be proactive: Provide your client with perspective. When you talk, remind them of the last conversation and the frequency you are aiming to achieve. “This is our second quarterly review of the year. We had the first shortly after New Year’s Day…”
4. “Tell me what you are currently paying. We will match or beat it.” Competing on cost is a reality. Unfortunately, plenty of people and firms are seeking the low-cost provider. It’s a race to the bottom. Basing a decision involving service on cost alone oversimplifies the situation.
Be proactive: Remind your client what they are getting in the total package. If they mention they are being offered lower rates elsewhere, mention they need the extra services unless they intend to provide them to employees internally through their own staff. You might include live, educational seminars. A competitor might mention they have video on demand. It is not the same.
5. “I am happy you are satisfied, please let me know if anything changes.” Establishing yourself as the alternative is an excellent strategy for someone seeking prospects – they are respectful of the current relationship while opening the door. If someone is dissatisfied with a situation, they often sit tight until they have someplace else to go. Now your competitor is waiting for an issue to come up between you and your client.
Be proactive: It is unlikely you will know this has happened. You need to give good service and be on the lookout for signs of dissatisfaction.
6. “You are taking a step up when you work with our firm.” Client confidentiality is paramount, but in certain situations like pension funds or public universities, client relationships may be public information. Your competitor is implying your client is equal in stature to these headline clients if they become the competitor’s client.
Be proactive: Your firm likely has high profile clients too. Some of your marketing material might reflect this information. Mention it when appropriate.
7. “You deserve better than what you are getting.” This might imply different things: Your firm considers this client a minor client because they are focusing on much bigger relationships. They might be implying your firm caters to mass market client and your client isn’t a mom-and-pop business. It’s a variation on the “step up” approach.
Be proactive: The key is personalized service. You are the client’s primary point of contact. Although your firm is in the background, the relationship is defined by the client by what you deliver personally. You might remind them, but the bond is likely already strong.
A common theme through most of these examples is attention and personalized service. Your competitor is seeking neglected relationships. But you are giving your client abundant attention.
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