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August 2, 2016 // 8:30 AM

11 Effective Responses to "We Already Work With Your Competitor"

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Imagine you’re in the middle of eating a delicious burrito. An employee from the restaurant next door walks over and says, “I’d love to tell you about our daily specials.”

When you point out that you already have food, he responds, “Trust me, you’ll like our options much better.”

There’s zero chance you’ll buy his food. But even though this strategy doesn’t work, it’s the same one most salespeople use in response to the “We already work with [Competitor X]” objection.

The typical rep says, “We can deliver the same service in less time,” or “Our product does the same thing for half the price.”

But there’s a problem with these types of responses. You haven’t established any credibility with the prospect yet -- why should they believe you’re the better option? Plus, you need to understand their unique situation before you can explain precisely how your solution will help (perhaps even better than what they already have in place).

Here are 11 ways to more effectively address the competitor objection.

1) “That’s good to hear -- [competitor] is a great company. In fact, we share a lot of mutual customers. Companies that use both of our offerings often find that our product makes accomplishing [X goal] much easier, since it has [unique benefit #1] and [unique benefit #2].”

This response lets you differentiate your product from the competition without slinging mud

Plus, it opens the door for another conversation down the line. Once you’ve won the prospect’s trust, you can start talking about a switch if that’s in the buyer’s best interest.

2) “At this point, I’m not asking you to rip anything out. I’d just like the opportunity to show you how we’re different and how we’ve provided additional value to our customers. I can present some use cases of other companies like yours who work with us and with Competitor X. When is a good time to schedule a follow up call?"

According to Bryan Gonzalez, business development manager at Procore, this response will give you the opportunity to prove what your product does differently -- and ultimately, show the prospect why they need it.

3) “Got it. Can I ask what type of evaluation process you go through to be sure you're getting the best service available?”

As president of Business By Phone Art Sobczak explains, you need to plant doubt in the prospect’s mind before they’ll ever consider changing vendors. They probably haven’t thought about their decision to use the competition since they signed the contract -- this question will have them wondering whether it’s still the right choice.

4) “Have they ever let you down?”

Founder of Trigger Event Selling Craig Elias recommends using this question to challenge the prospect’s status quo. If the prospect says yes, follow up with, “How did that impact your business?”

Finally, ask what the vendor did (if anything) to make up for the issue and prevent it from happening again.

“Once you know more about the letdown, you can ask if they would like to work with a more reliable vendor they can have confidence in,” Elias writes.

5) “That’s great. What do you like best about working with [competition]?"

Asking the prospect to think about all the reasons they love the competition probably seems like a bad idea. But sales strategist Dan Fisher says this question actually prompts his prospects to explain what they didn’t like about their vendors. The trick? You have to be patient.

“No matter what they say in response, wait seven to 10 seconds,” Fisher says. “The silence will become uncomfortable -- and that’s when the prospect will often offer up a negative comment or concern.”

6) “I’m glad you’re [dealing with X challenge, recognize the importance of doing Y]. How’s it going?”

The first part of this answer validates the prospect, while the second gets them to open up. Once they’re talking about their situation, you can figure out how happy they are with their current vendor. What’s working well? What’s not? Pay special attention to complaints that could be solved with your product.

Alternatively, try: “Oh, I’m familiar with [competition] -- we actually used them at my old job. Right now, I’m not trying to convince you to go with us instead. I think it makes sense to explore your situation first and see if [product] is even a good fit.”

Mentioning you’re a former user gives you instant credibility. In addition, many prospects respond well to this calm, friendly approach. Again, the goal is to simply get them talking about their situation.

7) “That’s great. I’m wondering, however, if you’re still struggling to overcome [X challenge]. I ask because I saw you [posted something along those lines on LinkedIn, tweeted about it, downloaded one of our ebooks on that, etc.] I actually have a couple suggestions for you related to that challenge -- would it make sense to schedule a call to discuss them?”

Of course, not every buyer will be so kind as to advertise displeasure with their current provider through a negative review or critical social media post. But if you take the time to research before reaching out and analyze the prospect’s online behavior, you might get wise to a not-so-perfect fit.

For instance, are they seeking help in a specific area that your competitor should cover? If they’re looking for help online, their current vendor clearly isn’t solving all of their needs. Help the prospect first, and they’ll be more receptive to to hearing about your product later.

8) “Of course -- many of our current customers have used different suppliers in the past. But I’m reaching out to discuss ways you could [tackle business pain, increase results, maximize this investment]. Would you be interested in scheduling another call to talk about that?”

In modern sales, “Always Be Closing” has been replaced with “Always Be Helping.” After you’ve helped the prospect with a challenge, they’ll be more receptive to hearing about what your company has to offer. Even better, it’s probably been a long time since anyone from their current provider called them up solely to offer some free advice -- so you’ll start to look more attractive than the competition.

9) “I see. Do you have a contract with them?”

If the prospect is locked into a contract and you truly believe switching is in their best interest, you have a couple options. Help them off-set the costs of breaking it early by giving them a discount or showing them the ROI of the switch. Alternatively, find out when their agreement expires, and let them know that you’ll reach out again a month or two before that date.

10) “Good to hear. I’m curious, what do you think makes the relationship work so well?”

Mike Schultz, president of RAIN Group, says this question is a non-threatening way to make the prospect open up. After they respond, you can probe further into the relationship by asking a series of “I’m curious to know” questions.

For example: “I’m curious to know -- what’s their average response time when the network goes down?” or “I’m curious to know -- does your account manager call just to check in?”

When the prospect answers “no” to a question, Schultz recommends digging deeper to find ways you may be able to improve on their current service.

There’s a silver lining to hearing the “we already use Competitor X” objection: It means that half your work is already done. After all, you don’t have to educate your prospect on their problem -- you just need to show them why your product is the best fit.

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Topics: Sales Strategy

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