Would You Send Your Customers to a Competitor?

Suppose you and a colleague were both interested in a job promotion. You have more experience. You have a stronger office presence. You have consistently delivered better results. You have better ideas. You are more personable.

Would you really fear the hiring manager interviewing both of you for the new role? Would you bother devoting any effort—let alone significant effort—to keeping the colleague and manager from interacting?

Of course not! There is undoubtedly a peace-of-mind associated with unopposed activity, but if you truly know yourself to be superior to the competition, you embrace it. You see it as an opportunity to further demonstrate your advantages. You welcome it as motivation to remain ahead of the pack.

Elite athletes routinely demonstrate this notion in accordance with the common saying, "the best players play best against the best players." Instead of fearing competing against fellow superstars, the best athletes confidently welcome the opportunity. They know that they are superior to the competition. And they know that they will be motivated to play as well as possible.

As a result, they create the plays, moments and victories that define their sports.

Businesses should embrace the same philosophy. If they are confident the totality of their customer experience, as defined by elements like availability of information, efficiency and efficacy of service, price, product quality and brand prestige, is stronger, they should welcome comparisons to competitors.

Instead of pretending competitors do not exist—as far too many businesses do—they should openly acknowledge the existence of their competition. They should even invite customers to try competitive goods and services.

If a business is constructed correctly, there is no risk. There is no chance of losing permanent market share. There is no hazard of building a competitor’s business at the expense of one’s own.

There is, however, an opportunity to demonstrate the superiority so often touted in marketing copy. There is an opportunity to show that one’s business understands its customers better than the competition does. There is an opportunity to show that the business’ top priority is delivering optimal value for the customer (and showing a willingness to let the customer go if it cannot) rather than monopolizing that customer’s spending.

That sentiment, one offered by customer experience consultant Mike Wittenstein in a recent Call Center IQ Executive Roundtable speaks to the heart of customer management.

Customers are rational beings. In accordance with that rationality and practicality, they will gravitate towards transactional scenarios and commercial relationships that offer optimal value. If your business is the one offering that optimal value, your business will win those customers.

That, therefore, should be the goal of customer experience design. That should be the grounds on which "customer lifetime value" is measured. Focus not on how much a customer will potentially spend with your business; focus on how much value you can deliver for that customer.

If you can optimize that number, you can remove any risk that your customers will head for greener pastures—such pastures, after all, will not exist. You can dare customers to try competitors—hell, you can incentivize them to do so. When push comes to shove, you’re the one offering the most valuable. You’re the one who will win their relationship.

If you sponsor a television show, do not get mad if an actor on that show references a competitive product. If you operate a leading mixed martial arts promotion, do not pretend there is no alternative league. If you manage a department store, do not offer bogus, let alone slanderous, justifications for why a nearby store is advertising a similar product at a lower price.

If you sense any risk in acknowledging or even sending customers to the competition, your concern is a holistic customer experience issue rather than a marketing one. You are not confident in the superiority of your experience. You, alone, need to remedy that situation. If you cannot unwaveringly declare your brand the best, you are not doing your job. You are not running an optimal business. You are not creating the best possible experience for customers.