The modern business world is sometimes referred to as a “battleground” and this allusion is often entirely appropriate in our commercial environment.  The enemy in this scenario is ‘the competition,’ essentially those enterprises that would like nothing better than to lure your customers to ‘their camp’, attract all or most of the new prospects, and generally increase their share of the market at your expense. 

In the business environment, complacency in the face of enemies can be fatal, so finding ways of strengthening your market position is essential.  Consider asking these questions: What do you need to know to gain an advantage over your competitors? What steps must be taken in order to strengthen the loyalty of your current customers? What can be done to win over your competitor’s customers? And ultimately, how can YOU gain market share? 

In the last few articles, Max referred to a methodology for understanding a Higher-performing, Agile, Learning Organization, which he called a HALO map.  I propose that this framework, which deals with organization capabilities, can be used to help retain your customers, as well as gain extremely valuable competitive intelligence.  This framework provides the company with a unique perspective that enables management to develop and implement an action plan.  

A valuable attribute of the HALO framework is that it establishes a common language, which allows the company to compare and analyze information about itself and its competitors, collected from both internal and external sources. This comprehensive design provides a view of the enterprise as a whole unit of action. 

RETAINING CUSTOMERS BY KNOWING YOURSELF 

The current literature on customer satisfaction and long-term loyalty insists that strengthening the relationship of customers to the company as a whole is the key to forming and maintaining long-term connections.  For example, assuming reasonably competitive pricing and service, customer retention is based on some or all of the following factors: 

·        the company’s innovation in producing new products and services,

·        the effectiveness of the company in responding to market changes,

·        how closely the company  partners with its customers in working towards their success,

·        the strength of the relationship between the company’s people and the customer, as well as the customer’s confidence in them,

·        the company’s commitment to keeping its customers informed on issues that may be relevant to their needs.  

Let us first apply the HALO framework to the task of making sure that current clients are satisfied, in an effort to prevent competitive poaching. 

We begin the process of learning about each of the organization’s capabilities by undertaking a systematic review of the key programs and practices that are associated with each capability within the company.  At the same time, we assess how adept the workforce and management are at their daily execution and at working towards their ongoing improvement. 

It’s important that all internal groups that are knowledgeable about the company’s capabilities participate in this review.  The perceptions of different work groups can highlight areas of agreement or disagreement, and underline areas of concern that may need improvement.  The customer service staff, the operations work force, the accounting and administration staff, the sales people, the staff and line supervisors, and management will all bring a unique perspective to the capabilities review. 

Information from external sources is equally valuable. Feedback from important clients should be gathered in such a way as to encourage an understanding of how the customer views the company’s programs and practices. This information can be gathered by having the company’s sales force meet with key clients. 

Comparing information gathered internally with information collected from customers can yield valuable insights. For example, customers may see timely delivery as a key issue, while management may believe the company is performing well in this area.  

By understanding the different perspectives involved in your business and establishing priorities that address customer issues, the company can undertake improvement initiatives directed at increasing customer satisfaction, and ultimately improve customer retention. 

GAINING COMPETITIVE INTELLIGENCE 

On the business battleground, knowing yourself is half the battle, but knowing your competition is also essential.  The enquiry process is an excellent opportunity to also glean information on how your customers view the capabilities of your competitors, whom they may also utilize.  This is a chance for your company to gather crucial competitive intelligence. 

The company can now assess how its customers view its capabilities in relation to the competition. For every customer the company values keeping and developing, this competitive information should trigger action initiatives in each area wherein the competition is viewed as doing a better job. 

By analyzing the feedback from all customers that provided information on a particular competitor, the company can develop an overview of that competitor’s strengths and weaknesses based on its capabilities. This should stimulate strategic actions to: 

·        see what changes are required to the company’s own capabilities in order to protect its market position,

·        see where that competitor is vulnerable so that the company can take action on an opportunity to gain a competitive advantage. 

An overview of the evaluations of all the competitors provides insight into the collective capabilities of the industry. This allows the company to understand its overall positioning in the industry, where it is vulnerable, and where it has opportunity to gain competitive advantage. 

Analyzing this competitive information, within the context of the HALO framework, also allows the company to ascertain the strategic orientation of each competitor. Additionally, this knowledge may provide an indication of where the company itself is strategically positioned. 

Repeating this methodology at appropriate intervals, allows the company to: 

·        evaluate the impact of its own improvement initiatives,

·        track changes in the capabilities of the competition,

·        view the strategic direction of each competitor, and

·        monitor changes in the overall competitive environment. 

This methodology raises the level of competitive intelligence beyond traditional methods. Knowing about and tracking the competition’s capabilities leverages the company’s ability to gain an important competitive advantage.  

Although other organization frameworks can be utilized for the purpose set forth in this article, analyzing organization capabilities provides a unique perspective. This methodology ensures that the company enters the competitive battleground armed with a clear understanding of its internal strengths and weaknesses, as well as those of its competitors.  This essential knowledge will aid the organization in retaining its current client base, as well as place the company in a position to win over customers from the competition.