Wednesday, December 4, 2013

When the competition speaks badly of you

What do you do when someone from another company spreads malicious rumours or tells outright lies about you to your clients?

Unfortunately it is a position that most of us have been in. The first thing to look at is why this is happening. Usually it means that your competitor is threatened by you, and therefore seeks to devalue you in order to get an advantage with your clients.

Some companies and individuals do this routinely, and will seize any opportunity to drop a negative remark about a competitor. "Oh, you're using Company X? I didn't realise they were still going after their managers left..."

Sometimes an individual will have a particular grievance against you or your company. Perhaps you outperformed them, perhaps you fell out, perhaps you fired them. Whatever the reason, sometimes it is personal.

It's horrible to find yourself on the receiving end of such behaviour. It can be hurtful, embarrassing, and it can have a very real impact on your business.

So what do you do when you become aware that a competitor has been saying bad things about you?

Look to the positives

They view you as important, because they are talking about you. This often means that you are currently being successful in what you do, and that you are relevant to them. If clients already thought badly of you then there would be no need for your competitor to bring you down.

It is likely that you found out about this because at least one of your clients confided in you. That means they respect you and trust you enough to tell you what is being said.

Your clients are not stupid. Lies can be insidious and cleverly delivered, but it is usually patently apparent to all when someone is trying to run down the competition. Think about it. If you were buying a car, and the sales person dropped a few clangers about another showroom, would you not know exactly what they were trying to do?

Some lies can be proved to be false. Things such as "John says your company will never work at that margin" or "John says your company is closing" are both things that will make John look pretty silly when you demonstrate that's not the case. John has now done you the double favour of helping your relationship with that client deepen (as you both have a chuckle about the situation) and made the client not trust the next thing that he says.

Get the facts

What is your competitor saying? Is there any truth to it? There is a difference between an opinion and defamation. If the lie is such that it damages your reputation and your credibility then you may well have legal recourse.

Make sure you have all the facts at hand in case you decide to follow this path. Document all information, keep written evidence or phone records, and make dated notes of any correspondence about the issue. You may decide not to bother pursuing legal action now, but that may change later - so act as if you will and keep the evidence at hand for when you decide to take action.

Make sure that you know exactly what has been said. It may not be enough if you have "John said you were a bit shady", but your case would definitely improve if you have "John said that you stole XYZ from Company X".

Decide what to do

If you have only just been made aware of a problem then you may shrug it off. However, if clients are repeatedly telling you of what your competitor is saying, or if the problem is such that it is harmful from the outset, you may need to take legal recourse to stop it.

Consult with a lawyer for further advice about your case if you decide to proceed.

You may, however, decide that - while distasteful - your competitor's gibes are unlikely to harm you or your business and, instead, may be working to discredit them in the industry. That being the case, you may decide that legal action is unnecessary. It may still be worth discussing with a lawyer, to ensure there is nothing you have overlooked.

Dealing with the issue without a lawyer

So, someone tells you that a competitor has said something bad about you or your business. How do you react? If you have never encountered this situation then take a moment to think, as when it happens you are likely to feel shocked, upset, flustered, and defensive.

Take a deep breath. The best recourse you have is to address the issue head on, in a calm and professional manner. It's okay to let the client (or person in question) see that you are shocked and upset. This is a very normal response, and one which helps show your client that the allegations are false.

Ask for clarification. Ask exactly what was said, by whom, when, and in what context. Write it down. If you have a good relationship with the client, and you feel it appropriate, ask them to put that in an email or letter to you. You will keep all records of such things in case you need them in the future.

Address the point at hand. If the rumour is that the company is going under/ no longer operational then, assuming that is false, say that it is untrue. If you suspect why your competitor is saying such a thing (e.g., you made someone - possibly even them - redundant) then explain this to your client, but reiterate that it is not true.

If the claim is outlandish, and bears no relation to truth, then tell your client so. Explain that you have no idea why your competitor would have said that, but there is no foundation for it.

If the client wants to talk about it then be open and honest. To say 'no comment' can look suspicious. However, do not stoop to your competitor's level in engaging in a war of words. Never say anything negative about your competitors, nor infer anything negative. Things like "John only says I stole something because he's been thieving from the company for months" or "Well, I guess business can't be good for him, so he has to come out with this stuff" won't win you any favours.

Don't give your detractors the time of day. Don't talk about them, and don't be seen to be giving them any value at all. They are, quite simply, not worth your time or energy.

The most important thing now is to build on the relationship you have with your client (and others). If one has heard something then others probably have too. Make sure you are talking to them often and that your relationships are good. People are much less likely to believe false accusations about people they know than those they don't.

And keep doing the good job that you must already be doing for everyone to be talking about you!




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