Calling your competitor on the phone and asking how things are going is likely to result in a "business is just stupendous" type answer. So you can turn to the Net for some more discreet and truthful answers.

When I consult or do a speaking engagement for a client, one of the first things I ask for is their top three competitors. My research for that client begins with a benchmarking survey that compares my client's marketing materials with that of their competition.

Now, you can get print materials easily enough by looking in the appropriate venues and becoming a customer of the competitor's. But the fastest way to get a bead on the horse race is to compare websites.

There is always, always, always, something to be learned from the other guy's website. If nothing else, you can see what not to do. But more often than not, you can pick up practices that you can employ yourself.

I subscribe to the competitor's newsletters, go to their webinars, and look at their traffic statistics, who points at them, and where else visitors to their site go on the Web. This gives me an idea of the "traffic flow" and the company the competitors keep. Those sites that point to the competitors: are they pointing at my client? If not, why not?

Contiguous Category Benchmarking

After doing the "Close-in" benchmark, I look then at a "contiguous category." If I'm working for a financial services firm I'm apt to look into top real estate sites or insurance firms. I look to migrate best practices from that category into that of my client.

Far Away Category Benchmarking

Finally, I'll look at best practices for sites that have nothing to do with the category I'm exploring, but are known for being leaders in their niche. If I'm working for a manufacturing client, I'm apt to look at firms as far afield as retail or travel, for example.

I Now Get Hired To Say Things That Used To Get Me Fired

Having an outsider, like myself, come in and do this for you is a good idea because the outsider is free of internal politics. I've seen situations where a given firm's efforts in a certain area were sorely lacking. I can say this much more easily than an insider can. That insider might be risking his or her job if he or she says what needs to be said. In fact, I've been called in precisely to say what can't be said by an insider.

It is my nature to speak bluntly. When I did this at the ad agencies it was sometimes frowned upon. I'd see a client spending money in a direction that I knew full well wasn't right, so I'd speak up, much to the chagrin of the account team. The client appreciated it, but the account team decidedly did not.

The Web is a Two-Way Mirror

You must remember that while you can closely scan your competitor, they can do exactly the same to you. In fact, if they're worth their salt, they already are. Are you? If not, think seriously and soon about having a benchmark study done. Who you get depends largely on who you are and what you do. If you need help with this, let me know.