We spend so much time analyzing our direct competitors:
- Their features
- Their pricing
- Their latest campaign
...and in doing so, we miss who we're actually losing opportunities to.
Spoiler: It's usually not who we think.
I realized this when a cybersecurity consultant asked me to help with his competitive positioning.
He knew everything about the three other security firms in his market. Feature comparisons, pricing models, the works.
But when he looked at his last 10 lost opportunities? Only 2 went to another security firm.
The rest chose to handle security internally, push the decision to next quarter, or spend that budget on hiring instead.
TL;DR: The real competition isn't always who's in your industry. Sometimes it's Excel spreadsheets, DIY solutions, or just... doing nothing.
Today, we're talking about how to spot your true competitors and message accordingly.
Let's map who you're really up against
When analyzing our "competition", yes direct competitors makes sense, but here are four alternatives to consider:
→ Status Quo: "What we're doing now is... fine"
→ DIY: "We could probably figure this out ourselves..."
→ Budget Shifts: "Maybe that money is better spent somewhere else..."
→ Different Solutions: Totally different way to solve the same problem
What's interesting is how rarely we plan for the first three.
The questions that reveal true competition
I've started asking different questions in discovery calls:
Instead of: "Which vendor did you choose?"
Try:
- What were you planning to do before you called us?
- What almost stopped you from moving forward?
- What else is competing for this budget?
The answers are eye-opening.
...and here's how I've been applying this to messaging / marketing:
1 / When status quo is your competition
They think what they have now is working well enough.
What works: Make the hidden costs visible
Example: "Every week you wait costs you [specific amount] in [specific loss]. Here's the math..."
Real numbers and real consequences tend to work better than vague warnings about "falling behind."
2 / When DIY is your competition
They're convinced they can figure it out themselves.
What works: Show the total cost of ownership.
Example: "Sure, you could DIY this. But between the learning curve, the mistakes, and the time away from [core activity], you're looking at..."
I've seen this with marketing automation. Teams think they'll save money doing it themselves. Six months later? They've spent 3x more in time than the tool would've cost.
3 / When budget reallocation is your competition
Every dollar with you is a dollar not spent elsewhere.
Example: "That $X actually generates $Y - which funds your [other priority].
Show how your solution doesn't compete with their goals. It accelerates them.
4 / When alternative approaches are your competition
They're solving the problem a completely different way.
What works: Show where that approach hits its limits.
Example: "[Their approach] works great for X. Here's where it breaks down..."
Then position yourself as the natural next step, not a replacement.
How AI can speed up your competitive research
Here's where this gets interesting.
I've been testing AI to help uncover these hidden competitors faster.
For research: Instead of manually analyzing every lost deal, I feed AI our discovery call notes with this prompt:
Analyze these prospect conversations and identify:
- What alternatives to our solution they mentioned
- What they were doing before considering us
- Reasons they gave for hesitating
- Other priorities competing for budget
Group these into categories and show percentages
For messaging: Once you know your true competition, AI can help create targeted messaging with this prompt:
My prospects often choose [status quo / DIY / other priority] instead of my [solution].
Write 3 messaging angles that:
- Address the specific costs of their current approach
- Show ROI within [timeframe]
- Use concrete numbers not vague benefits
- Speak to [specific role]
Keep it conversational, not salesy.
Then, I edit and add real client examples.
(AI prompts + a few bonus ones in a ready-to-copy format available in this doc linked here.)
Next steps:
Consider spending 30 minutes on this exercise:
This week: Pull your last 10-15 prospect conversations into a doc. Run them through the AI analysis prompt above.
Next week: Map what you discover into the four categories and use AI to draft messaging for your biggest "true competitor." Then, make it yours.
Test it. Track the difference.
All of this to say, your biggest competitor probably isn't who you think it is.
And your messaging? It might be answering questions nobody's asking.
What are your prospects really choosing instead of you? Hit reply and tell me what you discover. I'm curious what comes up when you start asking these questions.
See you next week,
Dani
P.S. Want the AI competitor analysis prompts in a ready-to-copy format? I put together a quick doc w/ the prompts plus a few bonus ones for messaging. Grab it here →