This article originates from a presentation at the Revenue Marketing Summit in Denver, 2023. Catch up on this presentation, and others, using our OnDemand service. For more exclusive content, visit your membership dashboard.

In the fiercely competitive business landscape, understanding your competitors is not just a strategy - it's a necessity. It's not just about knowing their moves, but about anticipating them, adapting swiftly, and always staying a step ahead. 

I'm Jay Nakagawa, Director of Competitive Intelligence at Dell. Throughout my career, I've realized the importance of embedding a competitive lens into every business decision. 

In this article, I'll share insights on how to cultivate a competitive mindset, understand your market, and leverage this knowledge to outpace your rivals.

My competitive intelligence journey

Before diving into the intricacies of improving revenue win rates through competitive intelligence, I'd like to share a bit about my professional background.

Over the years, I've had the privilege of working in a myriad of industries and roles. From venture capital to high-tech, and even supply chain management, my experiences have been diverse and enriching.

I've worn many hats, including sales, which has given me a deep understanding of its intricacies. I've also ventured into systems engineering, often referred to as pre-sales in some circles. Fast forward to today, and I find myself at Dell Technologies. It's been an incredible 13 years with the company, nothing short of rewarding and exhilarating.

Boosting revenue: The journey to higher win rates

Let’s shift our focus back to the crux of the issue today: revenue. The questions that often arise are - How can we secure more wins? How can we land larger deals? And, most importantly, how can we expedite the closing of these deals?

I've been fortunate to witness and contribute to the significant growth in our win rates over time. To provide some context, when I assumed leadership of the competitive team at Dell a decade ago, one of the divisions I oversaw was valued at $2 billion. 

While this is by no means a small figure, it was relatively modest in comparison to the broader company. At that time, our win rates hovered around the mid-50s, which, in my opinion, was commendable and perhaps even superior to many.

Our competitive team at Dell is dedicated to sales enablement. Our primary objective is to empower our sales teams to achieve success and clinch more deals. With a clear vision and set of objectives, we embarked on a transformative journey.

The results? Within a mere three years, our win rates soared from 55% to 70%. Beyond the third year, we consistently achieved rates in the high 80s to low 90s.

Achieving such milestones isn't a stroke of luck. It demands dedication, strategy, and relentless effort. In the following sections, I'll delve into the insights and strategies that propelled us to these heights.

The competitive edge: Dell's journey to a $102.3 billion valuation

When one mentions Dell, what's the first thing that comes to mind? For many, it's PCs, laptops, and monitors. But have you ever stopped to ponder just how expansive Dell truly is? While some might estimate our worth to be in the ballpark of 10, 25, or even 50 billion, the reality is that Dell stands tall as a $102.3 billion company. 

Impressively, even amidst the challenges of the past year and post the VMware divestiture, we managed to register a growth of 1%. To put things into perspective, VMware itself is a $13 billion entity.

A question I often encounter is: How did Dell achieve this stature, and how do we sustain this momentum? While I can't divulge all our strategies, I can certainly share some overarching principles that guide our approach.

At the heart of our success lies a competitive mindset. Over the years, we've initiated various programs to instill this mindset throughout the organization. One such initiative was our collaboration with a renowned figure in the competitive arena, Dr. Benjamin Gilad from Boca Raton, Florida. 

Last May, Dr. Gilad introduced our teams – spanning corporate strategy, market intelligence, sales, pre-sales, engineering, product marketing, corporate marketing, and product management – to his "Compete Challenge" program. The essence of this program is simple yet profound: cultivate a competitive mindset in every endeavor.

The results of this initiative have been palpable. This year, we've observed a marked enhancement in our competitive messaging, our approach to accounts, and our market outreach. It's a testament to the power of fostering a competitive spirit and the dividends it can yield.

Understanding the competitive landscape

Recognizing market needs

If you direct your attention to the diagram below from the Pragmatic Marketing Institute, you'll observe a distinct division. The top half is internally oriented, focusing on the inner workings of an organization. In contrast, the bottom half is externally directed, addressing elements like advanced pricing.

Diagram courtesy of the Pragmatic Marketing Institute - linked above.

Each column in this diagram signifies a unique discipline from the Pragmatic Marketing approach. At first glance, the column labeled "competitive landscape" might seem to be the sole domain of competitive strategy. However, a deeper understanding reveals that competition permeates every aspect of business.

For instance, identifying market problems is inherently competitive. We're in business to address specific issues and, ultimately, to win. A market with minimal competition often indicates a lucrative opportunity. It's essential to recognize your organization's distinctive competencies – those unique attributes that competitors can't replicate.

Revenue growth, while a standalone target, is also a reflection of your competitive strategies. At Dell, our team is continually engaged in this competitive dance. Starting with a modest team of three, we've expanded to a robust team of 22, overseeing a staggering $100 billion in revenue.

Win-loss analysis is a tool we swear by. Understanding why deals were lost – be it due to competitive features, pricing, or other factors – is crucial. It's about being objective and learning from every interaction.

Understanding your market, buyer personas, and the competitive thread running through every aspect of business is paramount. Dr. Gilad's phrase, "To know your enemy, you must become your enemy," resonates deeply. Immersing oneself in the competitor's mindset has been a cornerstone of my success.

Simon Sinek's TED Talk, "Start with why," encapsulates this sentiment. By discerning the 'why' behind a company's actions, you gain invaluable insights. For instance, in 2016, when one of our major rivals began divesting parts of their business, we delved into understanding their motivations. 

Our analysis revealed their intent to make themselves more attractive for acquisition. Such insights provide a strategic advantage, allowing us to anticipate market shifts and adjust our strategies accordingly.

Understanding the competitive landscape is about more than just direct competition. It's about recognizing market needs, understanding customer drivers, and crafting compelling narratives that resonate with your target audience.

Blind spots and storytelling

Every company, without exception, has blind spots. Even at Dell, we acknowledge ours and continuously strive to address them. Let me share a personal experience to illustrate this. In Colorado, we once faced a dominant competitor who believed they had the market cornered with an 87% share, leaving us with just 12%. 

They were confident, perhaps too much so. This overconfidence became their blind spot. We identified a unique feature in our product, which, when leveraged, allowed us to grow our market share from 12% to 34% in 18 months, and then to 50% the following year. Their oversight and financial overextension provided us with an opportunity to capitalize.

One crucial piece of advice I've always held onto is to understand what truly matters to the customer. What drives them? What are their executives and salespeople thinking? What motivates their growth initiatives? 

Once you grasp this, you can better comprehend how your competitors are positioning themselves. It's essential to understand the underlying drivers and what differentiation means to them. Often, the best way to gain this understanding is simply to ask. Engage in meaningful conversations, ask the right questions, and truly listen.

Reflecting on my early days in sales with IBM in the 80s, we were trained to engage deeply with customers, understanding their objectives, growth plans, and strategic initiatives. Today, many companies are so engrossed in their products that they forget the human element. They focus on features rather than solutions. 

Kendra Hall, in her book Story That Stick, emphasizes the power of storytelling. It's not about what the product can do; it's about how it can transform the customer's current situation.

To illustrate the power of storytelling, consider this example from my tenure as a product manager. We acquired a company valued at less than $10 million and generated a billion dollars in under five years. The key was not just the product but how we presented it.

We approached a customer with a large data center and proposed a solution that would significantly reduce their power and cooling requirements. By framing it in terms of tangible benefits – reducing 1300 floor tiles to just one, for instance – we made our value proposition irresistible.

Another instance involved a telephonic prescription service. The existing system required the customer service representative to wait for about two and a half minutes due to data retrieval from a mainframe application. We offered a solution that reduced this wait time to 20 seconds. 

The benefit? Improved customer service and increased call capacity, leading to higher revenue.

In essence, success in the competitive landscape is not just about understanding the competition but also about resonating with the customer. It's about identifying problems and presenting solutions in a way that's meaningful and impactful.

The art of simplicity

We've all heard the adage, "Keep it simple, stupid." It's a principle that remains as relevant today as ever. But why is simplicity so crucial? It's all about making information digestible for the customer. 

I've shared examples of how we've crafted stories to resonate with our customers, highlighting the tangible benefits we offer. The foundation of this approach lies in understanding the intricacies of the human mind.

Daniel Kahneman, a renowned clinical psychologist, delves deep into this subject in his book, Thinking, Fast and Slow. He introduces the concept of two systems of thinking. System 2 is the logical side of our brain, responsible for processing lists, math formulas, and other analytical tasks. For instance, if I were to ask you to multiply 13 by 24, you'd engage this side of your brain.

On the other hand, System 1 is intuitive. It connects data points and operates on a more subconscious level. It's the part of our brain that reacts instinctively, like when we're driving or making snap judgments about something we see on TV.

To illustrate how these systems work, consider this question: How many of each animal did Moses bring on the ark? Many might instinctively answer "two," but the correct answer is none. Why? Because it was Noah, not Moses, who had the ark. This example showcases how our mind quickly correlates familiar concepts, even if they're incorrect.

As marketers aiming to drive revenue, it's essential to cater to both these systems. While System 1 elicits the initial emotional response of desire, System 2 seeks to rationalize and justify the purchase. We've observed competitors who masterfully appeal to System 1, creating an enticing message that draws customers in. 

However, a closer look often reveals gaps or inconsistencies. It's our job to highlight these to the customer, ensuring they have a comprehensive understanding before making a decision.

In essence, effective marketing requires a balanced approach, appealing to both the emotional and logical sides of the brain. It's not just about creating a compelling narrative; it's about ensuring that narrative stands up to scrutiny.

Recap: The competitive edge in action

Let's take a moment to reflect on the key takeaways I've shared:

Embrace a competitive mindset

This should be at the core of every strategy and action. By doing so, you'll already be a step ahead of many competitors. I can confidently say this because, in my tenure with a nonprofit, I've collaborated with hundreds of companies. Most aren't wired this way.

Discover what's golden

Dive deep to understand what truly matters to your customers. It's not just about selling a product or service; it's about aligning with their core needs and values.

Simplicity is key

Always remember the dual nature of human thinking – the intuitive System 1 and the logical System 2. Your messaging should cater to both.

Now, you might be wondering about the tangible results of adopting such an approach. Let me share some stats from our journey at Dell:

We recognized the need to consolidate our competitive information and thus introduced a platform for the same. Initially, it was a pilot for 25 users. But the demand was overwhelming. In just two weeks, we had 100 users. A month later, the number skyrocketed to 1,500. Today, this platform aids 47,000 sales makers at Dell.

The results? They speak for themselves:

  • Win rates: Users of our competitive platform have a win rate that's three times higher than non-users.
  • Average sales price: Deals closed by our platform users are, on average, 40% larger in value.
  • Faster closures: Our users close deals 18 to 21 days quicker than their counterparts.

This isn't just about winning more; it's about efficiency. Accelerating pipeline velocity means winning deals faster and discarding unprofitable prospects sooner. This approach has significantly boosted our performance at Dell, and I believe it can do the same for you.