Four (4) reasons to work with a competitor could be in your best interest

Companies everywhere are looking at their business models and day-to-day operations to get through these trying times. From their ordering processes to their employee onboarding, they take a close look at everything to help identify the best opportunities to weather the COVID storm.

Traditionally, these conversations do not include partnership with a competing company, but these match-ups can offer advantages that are otherwise unachievable. Teaming up with a competitor can bring your organization some much-needed perspective and a true leader is willing to extend a hand to identify new opportunities.

I’ve had no issues playing friendly with competitors, but it’s sometimes hard to find others who share that mindset. Here are four reasons that explain why — and when — you should embrace working with a competitor:

1. Customer satisfaction is of the utmost importance

More often than not, when two competing firms team up, it's to the benefit of the consumer, which ultimately benefits each firm. When determining whether to pursue this sort of alliance, customers should always be your first consideration. Kyle Slager, Raken's CEO and co-founder, recently got on my radar to work with competing companies in the software construction industry.

Slager says that most of his competitive partnerships are the result of direct requests from clients. "Customers don't want to be forced to choose between one or the other solution, so we're giving them the chance to get the best of both. They're thrilled when they hear they have more choices," he explained. Because 84 per cent of businesses working to improve their customer experience report an increase in their revenue, these customer-driven partnerships are paying off handsome.

2. Competitors can help you fill in the gaps

Often companies choose a niche category to work in to provide customers with specialized services, but this can leave customers feeling like they lack support in other areas. Identifying a competitor who can help fill those gaps can help you provide a product or service that is more well-rounded.

Slager experienced this when he first teamed up with a competitor and said, "When you work with your competitors, no matter what industry, you will have access to more resources to fill in any gaps you may have internally. A healthy connection with the competition allows companies to provide industry and customers with significant value.'

3. Lead generation times two is always better

You may not immediately think that working with a competitor would lead to new business leads coming into the door. However, collaboration done correctly can have a positive impact on the sales cycle of a company. As your competitor becomes intimately familiar with your offers, your partner can screen and send qualified leads your way, which was not necessarily the best fit for their offers.

For example, Oracle and SAP band together when clients want to run SAP software on top of Oracle's infrastructure. It leads to a better customer experience, and allows each company to benefit from its strong suit. Partner-referred leads are a reflection of true collaboration and show customers that you have their best interests at heart.

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If you're willing to introduce customers to solutions that best suit their needs even if they're not your own not only will you trigger more referrals from your partners, but you'll also gain loyalty from potential future customers.

4. The competition can increase your brand awareness

The collaboration with competitors also opens up new marketing opportunities. Whether you're looking to co-host an event at a trade show or working together on a co-branded webinar, there's power to raise awareness about your brand. Your competitors have probably tapped into a demographic or use case that you haven't, bringing a new audience for you.

These collaborations add to any marketing strategy. Even better, they often lead to increased brand awareness and inbound marketing leads, which are a top priority for marketers and businesses hoping to keep their sales funnels full without spending an enormous amount on acquiring each new client.

As companies continue to look for innovative ways to help their business thrive in the COVID era, they should seek help from more entrepreneurs within their industries. When competing firms focus on maintaining their market share and viewing each other through a cutthroat lens, they overlook great possibilities.

This fear-based mentality leaves the feeling of customers being forced to choose one company over another, resulting in a disjointed feeling across the industry. There may, however, be hidden benefits in teaming up with a competitor, no matter in which industry you are in. Be willing to look beyond your immediate circle, and reach out to others who may bring something new to the table, believe it or not.