The Conversation with Competitors

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Introduction

I write this post in an airplane to San Francisco where I moved two weeks ago from New York. Mitch Joel (@mitchjoel) and Julien Smith (@julien) are on the same flight. Mitch sits in business class. He's going to deliver the keynote speeches for Google and for Walmart, I believe on the same day (let's admit he's a star right now). His book The Six Pixels of separation will be launched on Sept 7 and will probably be a huge hit. Julien sits at the back and he's going to speak at Gnomedex conference (Seattle). Next year, he’ll probably fly business class too since his first book Trust Agents with Chris Brogan is already a success after just few days of sales. Inspired by their presence, here’s my new post.

Executive Summary

Steve Rubel (@steverubel) will be happy to see that this time, I follow his example: people love graphics, charts and stuff. Since my posts are generally too long for most people, here's a summary. My usual long post follows after this chart.

 

Context

It has been said that “social media” innovates by introducing a conversation with customers into corporate marketing practices. Fundamental changes have been discussed by specialists:  (1) forcing brands and messages to become more flexible (“open source message” in my previous post); and (2) forcing managers to trust employees for managing the brand (some use the term “brand ambassadors”).

Two very good recent posts cover these changes:

1. Mitch Joel (again) wrote Maybe It Is Time For Marketing To Move Away From "The Big Idea". It refers to the fact that the traditional advertising approach has a hard time to adapt to such a granular media field as today's Internet. You may also read my comment at the bottom of his post.
2. John Cass (@johncass), a long time PR blogger, wrote a beautiful long post as I like them Engagement: The Next Step After Content Marketing. He gives an extensive overview of today’s social media practices and describes well where it’s going: less content, more conversation. People's Involvement becomes key.

But something else is coming.

The Break Through

A change is about to happen in our industry that will challenge the traditional marketing strategies. It has been said that “social media” innovates by introducing a conversation with customers into corporate marketing practices. But if you follow closely social media principles, it leads also to something new: The Conversation between Competitors. Brands have a conversation with consumers, but they will have a conversation between themselves soon.

Traditionally, companies would diffuse a message to the mass. Each company would speak to - what they called - "their consumers" (isn't it amazing that companies used to believe in consumer's devoted consumption?) and would merely ignore the rest of the market. They would avoid mentioning competition considering that it could back fire or simply, that it would increase competition's visibility.

But the social media culture is way different. It tolerates occasional confrontation and greatly allows diverging opinions. Also, the Internet provides now tons of tools for companies to intervene in the process of word of mouth; bringing somehow a new form of soft control over spins. That context is new and will allow new practices such as the brands' conversation.

Soon competitors will have direct exchanges with each other under the eye of consumers. That will be a new game and could become one of the strongest marketing tools.

Here's my Conversing with Competitors 101...

10 Reasons Why You Should Publicly Engage in Direct Conversation with your Competitors:

1.    Competitors and you are alike

Competitors share the same passion, the same interests and they go through the same things as you do. In many ways they are probably the people who are the more alike yourself. Shall you have a minimum of humanity and empathy many things can be shared positively with your competitors.

2.    Competition won’t go away

It might be better to accept it and work it to your advantage - It could save you time, energy, unfruitful campaigns and important resources.

3.    It shows that you are not afraid

Demonstrate your good will and your fair play by engaging your competitors in a conversation. Invite them as your friends on Facebook or LinkedIn (contact list for contact list). Show that you are not afraid. Costumers will notice and follow.

4.    It shows that you like what you do

Making friends, or at least have a direct communication with competition, shows your good nature and demonstrates your passion for your industry. It's like an athlete who compliments a competitor after a nice play. It shows his love for his sport and somehow wins our sympathy.

5.    Indirect competition does exist

Competitors and yourself have the shared responsibility to maintain the wealth of your industry and see when basic cooperation is needed. Industries are in competition with industries. That is a strong market dynamic and, surprisingly, direct competitors can become allies sometimes. But most importantly, without competition there is no industry.

6.    Respectful competition invites consumers

Conversation between competitors helps an industry's image and invites consumers to feel comfortable with the brands who talk with each other. It engages consumers by creating a climate where they feel good to hang out and stay.

7.    Trust the social media dynamics

Consumers are increasingly inclined to support the “good” players. Social media provides - for the first time - effective tools to maintain conversations publicly and prevent obvious spins. Time will be on the side of the respectful and trusty players.

8.    "Frienemies" could help in the future.

Maintaining a channel of communication with your competitors might be useful eventually. It's a competitive advantage compared to companies who don't.

9.    Friends define your social status

In a previous post I discovered that in the social media sphere "who you are" brings more results than "what you say". If you're famous, if you have an important position, or if you hang out with important people, it will make you popular and will engage people more than what you say. People care more about the source than the media or the message. Making public alliances is a strong opportunity to raise or consolidate your status in an industry.

10.    Exclusion from the competitors' conversation is knee-breaking

Making alliances and maintaining conversation with some competitors is de facto a way to exclude other competitors. This dynamic could make the Conversation with Competitors one of the most powerful tool to work positively or negatively on your brand status. Being excluded from competitors’ conversation is a knee-breaking hit. Hanging around with the number one or the innovator one can be an uplifting experience.

4 Things to Balance in your Direct Conversation with your Competitors:

Be cautious. Converting with competitor has some risks. Through all the process of conversation and through all social media, a brand can be managed through 4 factors (stolen from traditional advertising practices). The goal is to increase shares without losing too much of the others. The 4 elements are: Your Share of Voice, Your Share of Heart, Your Share of Trust, Your Share of Expertise. Each of these factors has the power to generate sales by itself. Each of these factors - if badly managed - has the power to prevent a sale from happening. All these factors can be measured, if not by quantitative tools, by at least qualitative tools.

1.   Your Share of Voice

The share of your voice, your noise, the conversations about you within your industry compare to your competitors. As an example, 45% of all conversations within your industry could talk about you or your products. All conversations about all companies make the 100%. The more talks about you, in a good way or a bad way, the better. It is to your advantage since it limits competitors ability to get consumers attention. It then becomes more difficult for them to leverage their communication strategy. That doesn't mean that "bad talking" is necessarily all good. It will affect negatively the other factors: Heart, Trust and Expertise.

2.   Your Share of Heart

Your share of affection that you get from the industry consumers compared to your competitors'. As an example, Nike and Apple traditionally score high as "loved brands" within their industry. It’s the factor that makes people "want" a product or buy a product despite bad press. It's the factor that makes people notice more the conversation where the brand is involved and, somehow, embellishes what it is said. 

3.   Your Share of Trust

Your share of perceived reliability and truthfulness from the industry consumers compared to competition. Trust is based greatly in honoring your word. But it's influenced also by your attitude of fair play, and the respect you have for consumers and your competition.

4.   Your Share of Expertise

Your share of perceived credibility and performance from the industry consumers in regard to competitors. Are you perceived as the best in what you do? Do you provide the best advices? The best product? The best service?

10 Ways to have a Direct Conversation with your Competitors:

1.   Decide which competitors you want to be friends with

If you are way ahead your competition in your industry, you may afford to reject your competition as a whole. If it's not the case, then many strategies can apply. Which competitors will still be there in 5 years? It might be better to be friends with them instead ignoring them. Which brands have a complementary positioning? If you are old and untrendy, you might want to hang out with the new cool player. Which brands have a similar profile? Some small players might want to regroup in the conversations to compensate a bigger player. Which players have always played nicely? Good players have always something to offer. Whatever your strategy is and the reality of your market, you should decide to make friends with who can help you hit the brand that you want to hit and who can help you raise your status. Here, making friends doesn't mean at all co-branding or advertising in coop. It just means that you are mutual friends on Facebook or so. A "brand friend" is a term that I would limit here for social media only.

2.   Decide which competitors you want to exclude from the conversation

Any player that has a bad reputation or that won't play nicely should be excluded. You simply don't want to associate your brand with them. Other than that, every player small or large, cool or uncool, should deserve your conversation. That doesn't mean that they have to become your brand friend, but at least you may reply to their conversation. That applies to competitors that you fear and competitors that you don't agree with. You may want to exclude the competitor that you want to hit hard. Be sure to have an advantageous position. But your intention will be clear then and it might not be a sustainable decision if the player gains trust, expertise and heart over the market.

Who you exclude from conversation and who you make officially friends with are the two most important decision of a Competitors' Conversation strategy. These decisions make "who" you are. What you say after in the conversations has less impact. The source is more important than the media and the message.

3.   Decide which competitors you want to accept in the conversation

You might engage with your brand friends. But with the ones that are not excluded, you will still have to convert at some points shall they start a direct conversation or mention your name or product. It's better to have identified them before and know their possible straights and alliances.

4.   What to do should a competitor says something good about you?

Thank him right away. Your competitor is building sympathy over your brand. He's winning some share of Trust, share of Expertise, share of Heart by complimenting you, his competitor. Limit his building time as short as possible. Don't let consumers build on a competitor's compliment without re-framing the compliment and thanking your competitor. Be also creative in your answer, don't let him win all the sympathy. Be aware of remaining humble and respectful your competitor just gave you a compliment.

5.   What to do should a competitor says something bad about you?

In most case, you should wait for two reasons. First, you want to know if consumers will defend you. If they do, they'll convince themselves that you are great and it will back fire at your competitor. If they don't, well, you'll have learned something, then you can write something to defend yourself. Second, you don't want to show to your competitor and consumers that you consider the attack seriously. It would straighten the point. When you reply, remain respectful, polite and brief. Don't engage or attack back. Attacking back doesn't seem to work well in social media. Instead, a joke or a little tease shows that you remain relax.

Shall the bad thing be based on wrong information, then reply instantly with the right facts. Keep it brief, boring, respectful. Don't try to say everything. Instead, just provide the facts and leave room for consumers to do a buildup the argumentation.

6.   What to do should a competitor does something awesome?

OK, fine! Your competitor just launched an amazing product, or won an award, or behaved like a good player. He won the point anyway. Here is an opportunity for you at least to win a half point and limit the buildup from consumers. Compliment him soberly and re-frame the good thing. It will be hard for consumers to add to that after. You will also gain some Share of Trust, some Share of Voice, and you will associate yourself in the league of that competitor. It will also show to consumers that this awesome thing isn't the end of the world for you.

7.   What to do should a competitor does something bad?

Nothing. If it's one of your friend, you might want to limit the damage for him. He's an ally against other competitors. But be very cautious not associate yourself to the problem. Also, this can be seen as an opportunity for you to build some Share of Expertise and Share of Heart. Be careful not to embarrass your competitor.

8.   What to do if something bad is said about your competition on your site?

In all case, never let competitors gain some Share of Voice within your site. Act quickly, sharply. Don't let people talk too long about competitors product on your site. It's an invitation for other people to defend your competitor and start a conversation. It becomes very tricky after to re-frame the conversation towards your product. So look good, mention that you don't see the point in saying bad things about competition, seize the opportunity to increase your Shares of Trust and Expertise, and end the conversation  sharply. Protect your territory!

9.   What to do when an excluded competitor says bad things about you?

Do nothing directly. Remain polite, respectful and brief. Publish the facts on your site. Don't attack, engage or reply in the forums where the excluded competitor is publishing. Ideally, your brand friends shall not engage the excluded player.

10. What to do when you get excluded from conversation?

Shall your Share of Voice is attacked by competitors avoiding conversations with you, you may compensate by increasing your Shares of Trust, Expertise and Heart. They are trying to make you belong to a minor league. Prove the contrary.

Use your Brand friends to talk about you. Don't hesitate to be mentioned in competitors own forums. That might force them to change their tactic.

Another way to work the situation to your advantage would be to find a weak player within the other clan and engage with him to split or break a group of allies.

A third way would be to make their refusal to engage with you well known. That tactic has to be deployed by your friends. You can't mentioned that yourself, it would make you look in need for attention.

Over all, these tactics are flexible. A marketer must adapt them with his best judgment to his industry reality. Things are not only black and white, and success comes when you hit the right tone of gray.

Read other Bastien's posts, click here

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