Market Intelligence and its application in salesOn December 1, 2021 by blog-admin
Here on the blog we’ve already talked a lot about business intelligence and its various applications. Without it, the job of generating leads and tracking marketing and sales indicators becomes very complicated.
But what we never told is the initial idea of the project that led us to create the commercial intelligence position. It’s an interesting story, which arose from a strong doubt we had when team of waterfront block started working in sales.
How are companies often caught by surprise by unexpected competitors or crises? Is it possible that taxi cooperatives were unaware of the power of apps? And the taxi drivers, didn’t they imagine that some service similar to Uber would appear?
Therefore, we thought of creating a position that, in addition to assisting the commercial area, would also work collecting market information, to guide all the company’s strategies.
After all, information is a very valuable commodity. Who dominates it, has the power. Otherwise, insider trading wouldn’t be a crime, right?!
I talked a little about market intelligence in the excerpt above, right?! But here at Capital Smart City, we didn’t explain how the role evolved until we got to current business intelligence.
When we started to structure the process, we fell into the famous trap of wanting to embrace the world with our legs. We imagined a thousand functions that could be performed. From list generation to complete study of a particular market area.
But we run into two difficulties: timing and deliveries. While the delivery of qualified lists generates results in the very short term, market analysis does not have short term inputs.
In it, you basically find the direction the market is heading in the long term, as well as data on competitors, which often, in addition to not being replicable, do not generate returns for the company.
So, I don’t even need to talk about which process evolved, and which one died. Not that the company was to blame, far from it.
But it would be necessary for one person to be responsible only for analyzing the market, while the other would generate the qualified lists.
But that doesn’t mean that market intelligence can be neglected either. I’ll give you an example below of why this might be the failure of your business.
Uber x Taxi
A fight that we have been constantly following is between taxi drivers and drivers and users of the Uber app. There are thousands of reasons for the application’s success, from the quality of the service to the ease of payment.
But the fact is, taxi drivers are losing this battle for being extremely unprepared. They didn’t even see where the coup came from! It is not possible that any taxi driver predicted that a service could appear that would take advantage of loopholes in the legislation.
I’m not going to get into the discussion of who is better, because whoever knows me knows very well what my preference is. If I were a taxi driver, however, I would have kept my eyes open when the application appeared, as I would have to at least adapt my service to the competition.
If I had noticed any such move, I would have at least communicated some taxi App company I was part of, to create similar functions, such as payment for the app, and I would have started dressing better for work.
If my requests had not been met, I would simply change my business model. I would abandon my red license plate and look for work at Uber. It’s a fact that innovation will win, so why keep fighting it?
Did you understand the message I’m trying to get across? Market intelligence needs to convey this feedback to your company. If it is necessary to change any feature in the product or the entire business model!
That’s the difference between a company that survives a crisis and one that perishes. Seeing outside your own organization is an essential part of successful business. But how is the work to be conducted? How can it add value to your venture?
Market intelligence applied to everyday life
It’s the big dilemma for any company. How to transform the work of market intelligence into something tangible?! We can work on some strands. They are:
- Competitor analysis;
- Analysis of business models;
- Intersection with commercial intelligence.
I’ll briefly explain how each of these deliverables work, and I’ll also show you which people within your company can do the job.
Every entrepreneur must know how to deal with the competition. Unless you are the director of a state-owned company that has the market protected by the government, it is natural to face competitors during your career.
In fact, I firmly believe that competition only brings benefits, especially to the final consumer. In recent years, we have followed the struggles of companies that have only brought benefits to the market.
In addition to the Uber x Taxis case, we have the example of the Smartphone market. The competition between Samsung and Apple has given us more powerful phones at more competitive prices.
But it is not because competition is a good thing that the entrepreneur should see the market only from the consumer’s point of view. He must always be aware of the movements of his competitors.
Can you imagine Apple surviving in today’s market if it stops looking at what Samsung is doing?!
It is necessary to monitor points ranging from the features that the competitor is launching, to the way it communicates with the market.
But who can perform these roles? It is necessary to analyze several factors. To follow product evolutions, it is necessary to have someone in the technology area to carry out this work.
In market communication, pricing, etc., it is marketing’s job to follow the evolution of the competition. We’ll talk a little more in depth below about each of these points.
I faithfully believe that every platform or service must have a market beacon. But what would that be?
For you to have an idea of the evolution of your product and service in the market, it is necessary to know where your competitors are. Right?! If your product is much more complete than your competition, it means that your technological advantage is much greater and you can take greater flights, for example.
But as we know, a developer has a lot of operational work to do, so it doesn’t make much sense to have them monitor the concurrency. So it’s the product manager’s job to check these points.
Studying in depth the solution of its competitors, it can propose improvements to the system, as well as new features that will facilitate the work of the marketing and sales area in the commercialization of the product.
Chief Marketing Officer (CMO)
In theory, the greatest specialist in terms of content production, SEO, etc. should be the CMO. Even so, he should be responsible for analyzing what is being done by the competition in the market.
Seeing how competitors are communicating in the market can be an interesting beacon for the work being done by the company’s marketing.
It is also interesting to check on tools like Alexa, how are the indicators of your competitor’s website and blog.
It’s the best way to see if your traffic acquisition strategies are being more effective than your competitors! After all, it’s no use bringing 100,000 visits per month if your competitor has more than twice as much!!!
As for the entrepreneur, there is a tip: communication with the market, when it starts to be done, is based on premises. When starting your venture, use your competitors’ content as a basis to start your production.
This will save you a lot of time and money!
Business Model Analysis
What is the biggest problem most startups have? I would say finding an effective business model.
And many companies in the struggle to achieve the ideal model end up going broke. So why not rely on the competition to get to the great point?!
Why, entrepreneur, who has scarce resources and time, will waste time trying to reinvent the wheel, and the answer may be right next door?!
For example, if I started my smartphone company, I wouldn’t try to find a pricing and sales model, at least in the beginning, different from what is already done in the market.
Of course, after making some money, I could look for something disruptive to increase my margins. But until that happened, I would simply try to follow the basics of the market and try to innovate in product or marketing strategies.
The only person who can carry out this work effectively in a startup or SME is the entrepreneur himself, as he is the only person capable of making changes at the ideal speed.
The market doesn’t wait, and those who don’t adapt to the most efficient business models are doomed to fail. It is the same as a company that is inserted in a complex sales market and has a high average ticket, not using cold calling 2.0 to prospect.
Trying to qualify right at the beginning of the prospecting conversation, for example, as beautiful as it sounds, is not ideal. Your lead may even be interested, but without scheduling a meeting or demonstration, he’s unlikely to be willing to give up 30 minutes of his time without notice.
Just put yourself in the buyer’s shoes: you’re busy and someone appears wanting to have a long conversation right at the beginning of the sale. Since you’re not buying a t-shirt or a Popsicle, you need to better understand what you’re getting, right? Therefore, having a short pitch and closing a demo is the best way.
As much as trying to pretend you’re buying your lead’s product sounds like something innovative, for example, it’s not scalable. Even if your conversion rate increases by 5%, it doesn’t make up for the amount of contacts you fail to make in the model that has already been proven to be efficient.
Don’t try to reinvent the wheel. Simple, most of the time, is the answer to the questions you have.
Intersection with business intelligence
Did you know that there is a process that generates input for commercial intelligence?! Yes, market intelligence is vital to marketing.
Without it, the person responsible for commercial intelligence would never know which direction the market is taking. For example: it is market intelligence that drives the prospecting strategy.
If she realizes that the market in São Paulo is more dynamic in a given sector, the sales team must prospect for leads from that region, right? Therefore, commercial intelligence assembles lists only with these prospects.
Any commercial area works like a gear. It is necessary that the entire company is in tune to evolve consistently.
Selling is no longer just picking up the phone
You need to know the answers to one question before structuring your business process: Why is sales today segmented?
We have already answered this question several times in our texts. But did you know that Aaron Ross acted as market intelligence?! Before changing the process, he studied the sales model he was in and changed his business processes.
He realized that it wasn’t just about picking up a person and putting a phone in their hand. It was necessary to segment the process and use intelligence when going to the market.
Now it is necessary to understand the profile of leads in order to prospect effectively. Align the best speech to be used, in addition to checking which were the pain points that should be worked on.
In short, the commercial market is no longer just feeling and has become more of a science. But unfortunately, this is a lesson many people ignore. But books like the Sales Acceleration Formula and Predictable Revenue are out to prove otherwise, along with the success of companies like Salesforce and Hubspot.
Market intelligence, after all, made all the difference in the sales story.
Crises today end up serving as a filter. Inefficient companies end up going broke, while those that are better prepared survive and come back even stronger.
Market intelligence can be your company’s differentiator. It can show your company where markets are heading, in addition to the positioning of your competitors.
And your company, do you want to adapt to the best market practices? Talk a little with our consulting team to understand how market intelligence can help your company stand out in the market!