When developing a new product, do you evaluate the competitive alternatives?

Your customer has choices and can buy from your direct or indirect competitors. Very often businesses don’t understand their competitive landscape and make ASSUMPTIONS that end up costing them $$$ and results in an unsuccessful launch.

Some questions to ask:

• What are the alternatives available to my customers?

• Who is providing the solution today – both direct and indirect competitors?

• What is the value proposition of these alternatives?

• What is the price of these alternatives?

• Are we adding more features with our solution or real benefits and thus economic and emotional value to our target customers?

• Have we got samples to test competitor claims and test what additional benefits and value our product will provide?

• What differentiates our value proposition from the alternatives?

Don’t fall into the trap of making assumptions about your customers’ needs and what your competitors are offering.

Asking these questions helps build a clearer picture of what value your competitors are really offering and how you can add additional value to your customers.

It also takes the conversation away from price and focuses it on benefits and value that your solution is providing.