Competitive Intelligence – The Difference Between “Interesting” and “Effective”

I always think that it is critical to make your competitive intelligence efforts as effective as possible. Over time, we at Primary Intelligence have seen so many initiatives, either in play or proposed, that seek to know just about anything you can imagine. Many requests have been merely puzzling while others have been, at best, illegal.

These questionable requests include things like: (Skip to the bottom of the list to resume the idea of the thread)

How is LaborFree’s sales organization structured (numbers; roles; management structure; span of control; by product)? Is there a sales organization chart that presents this structure? In a more general sense, is there a detailed, company wide org. chart? If so, please provide.

To whom does sales report, both regionally, and at the corporate level?

How are the sales offices geographically dispersed?

What is the role, and extent of, inside sales?

What is the typical, daily experience of a LaborFree sales associate (number of prospect/client contacts; “roll-calling” requirements; prospecting vs. account maintenance/growth; interaction with accountants and existing clients to acquire referrals; support from other LaborFree’s organizations and management, etc.)?

How extensively do LaborFree sales associate make use of product demos in the sales process? Describe the typical sales call.

Describe LaborFree’s discounting practices, at the time of initial sale.

How does LaborFree calculate its customer retention rate (by client, or by revenues)? What has that rate been over the last five years?

Does LaborFree use its LaborFree Agency commission revenue to support discounting to customers who use the pay-as-you-go insurance products? If so, to what extent?

Number of orders submitted / % errors

Number of payrolls setup / % perfect

Number of first payrolls processed /% perfect

Number of hot-start orders submitted / % actual starts

Average cycle times

How does LaborFree categorize its expenses? Provide specifics.

As compared to SOFTTIME-ES, are similarly-labeled expenses actually alike, or are there definition differences? What are these differences?

As compared to SOFTTIME-ES, does LaborFree match us expense-for-expense, or are there whole categories of expense not present in the LaborFree business model?

Where LaborFree and SOFTTIME-ES expenses are similarly defined, where are their expenses materially less or more (proportionately) than SOFTTIME’s expenses?
Per the above question, why are their expenses proportionately less or more than ours, for similar activities?

Of course, those RFPs always included the instructions, “No illegal methods may be undertaken to gather this information.”

When I see such requests, I have to ask the question, “How will this help a company sell more? I can see why the information is interesting. In fact, I have a definition of “interesting information.” Basically, anything that a company doesn’t know is easy to categorize as “interesting.”

But, “interesting” doesn’t often generate revenue. “Interesting” doesn’t make more sales happen. “Interesting” might not even make the company stronger. Interesting might only be interesting to one person; not to an entire company.

So, how does one sort out the difference between “interesting” and “effective”?

Start by defining those things that your company defines as effective. How do you make choices about services in other industries? How does your company define ROI? Certainly, healthy companies do not make a habit out of wasting dollars.

If you need some ideas, let me share some of ours. What makes intelligence effective? In order to be effective, the intelligence should:

1 Strengthens your company’s position

• How is our value proposition perceived?
• What is the competition doing?
• Which industry-wide best practices will truly apply?

2 Discovers new markets

• What is possible with new technologies?
• Where should we steer the company?

3 Develops new products/services/solutions

• What problems do our clients experience that we can address?

Apply this litmus test to your current efforts. Compare the day-to-day requests against these standards. If the comparison leaves you wanting, you have to figure out how to put changes and such in place to stop the cycle of “interesting, but worthless” information.

If you have a different set of “ effective” definitions that work for your company, let’s chat. I would appreciate your input. (cdalley@primary-intel.com, 801.838.9600 x5050)