Don’t copy your competitor just because they’re doing something.

They may have no idea what they’re doing either.

What it costs you

They might be guessing too.

The place across the street starts a radio spot. Or puts up a billboard. Or sends out a big mailer.

And you start to sweat. “They must know something. We’d better do that too.”

So you do.

You don’t know if it’s working for them. You’re copying a guess.

Maybe it brought them nothing. Maybe they’re losing money on it right now. And you just signed up to lose it with them.

A real example

The billboard across the street

A pizza shop owner drives past a new billboard. It’s his competitor’s. Big, bright, right on the main road.

The next morning, he calls and signs up for one too.

Two months later, he tapes a sheet of paper by the register and starts asking every new customer one question: “How did you hear about us?”

Friends. Google. The magnet on the refrigerator. Walking by.

Nobody says the billboard.

He wasn’t following a plan. He was following the guy across the street.

Then he hears the guy across the street is dropping his billboard. It never brought him anybody either.

Why it happens

Why copying feels safe

“They’re bigger than us. They must know.”Bigger doesn’t mean smarter. Sometimes it just means louder.

“If it works for them, it’ll work for us.”You don’t know that it works for them.

“We can’t let them get ahead.”They’re not ahead. They spent money.

“It’s easier than figuring it out.”Asking one question is easier still.

Their marketing was built for their guess. Build yours on what your customers tell you.

Do this instead

Stop guessing. Ask.

You don’t need to know what your competitor is doing. You need to know what’s working for you. The fix is free. It’s one question: “How did you hear about us?” Ask it every time.

Where	How to ask
On the phone	“Thanks for calling! How did you hear about us?”
At the counter	“By the way, how did you find us?”
On your new-customer form	One line, a few boxes to check and an “other” blank
On your booking page	A simple drop-down
On every flyer and mailer	Its own code, so you know exactly which one came back
By the register	A tally sheet. Low-tech, and it works.

Once a month, sit down with the tally for fifteen minutes. Do more of what brings your customers in, and stop paying for what doesn’t. If your competitor wants to keep guessing, let them.

Do this today

Cost: $0Time: 10 minutes

1
Write down the last thing you did because a competitor did it.
2
Tape a tally sheet by your phone and your register.
3
Ask every new customer, “How did you hear about us?” Starting today.
4
Put a 15-minute check on your calendar for the first of next month, and cut whatever brought in nobody.

Your competitor doesn’t pay your bills. Your customers do. Ask them.

From the book