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Handling “We Already Use a Competitor” on a SaaS Discovery Call Instead of Ending It

Quick answer

Two large-scale Gong Labs studies point at the same behavior working against SaaS sellers when a prospect says they already use a competitor: pitching harder reduces cold email reply rates by up to 57% across more than 28 million emails analyzed, and reps who talk less about their own solution during discovery earn a next step more often, based on more than one million executive sales cycles. The instinct to over-explain why your product is better is the same behavior both datasets show backfiring.

The same executive-focused research found that mentioning ROI at all during discovery correlated with lower next-meeting rates specifically with executive buyers. None of this is a script for what to say instead, no primary source studies word-for-word responses to this exact objection, but it is sourced evidence for what not to do the moment you hear it.

What the Data Shows About Over-Pitching

Gong Labs analyzed more than 28 million cold emails and found that pitching, leading with a description of the product rather than a question or observation, reduces reply rates by as much as 57%. That is not a marginal effect, it is one of the larger single-variable swings in the entire dataset.

The instinct to hear “we already use a competitor” and immediately explain every way your product is different or better is, structurally, the same over-pitching behavior this data shows working against a seller, just triggered by a specific objection instead of a cold open.

Executive Buyers Punish the Same Instinct Even Harder

A separate Gong Labs study of more than one million executive sales cycles found reps earn a next step more often specifically when they limit how much they talk about their own solution during discovery with executive buyers. The same research found that mentioning ROI at all during discovery correlated with lower next-meeting-set rates with that same executive audience.

Put those two findings together and a pattern emerges: the more a rep tries to actively sell inside a discovery conversation, whether through product explanation or an ROI pitch, the worse the executive buyer responds. A “we already use X” objection is exactly the moment that instinct gets strongest, and exactly the moment the data says to resist it.

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Why “We Already Use X” Triggers the Over-Explain Reflex

The objection feels like a direct challenge to the product, so the natural response is a direct defense of the product. That reflex treats the objection as an argument to win rather than information to gather, and it is worth naming explicitly, because naming a reflex is usually the first step to not acting on it automatically.

A prospect volunteering the name of a competitor has actually told you something valuable: a budget line exists, a category has already been evaluated, and a decision-maker somewhere signed off on a tool in this space. That is a materially better starting position than a cold prospect with no frame of reference at all.

What to Ask Instead of What to Pitch

Practitioner guidance, not a cited statistic: instead of listing differentiators, ask what is not working with the current tool, what would have to be true for switching to even be worth evaluating, and who else would need to be involved in that decision. Each question gathers information a pitch cannot, and none of them requires defending your own product at all.

If the honest answer is “nothing is wrong, we’re happy,” that is useful information too, it tells you this is not a live opportunity right now, which is a faster, cheaper outcome than a drawn-out pitch neither side needed.

Reading the Objection as a Buying Signal, Not a Dead End

The two Gong Labs findings above both point the same direction: less pitching, more asking, especially once a specific objection has been raised. That is a harder discipline to hold in the moment than it is to write down, since the instinct to defend a product under direct comparison is a strong one.

Human + AI SDRs are trained to ask, not pitch, in exactly this moment, so a “we already use a competitor” reply becomes a qualifying question, not the end of the conversation.

What this means for you

  • Pitching harder measurably backfires: cold email reply rates drop by up to 57% when a message pitches instead of asks, across more than 28 million emails analyzed by Gong Labs.
  • Reps earn a next step with executive buyers more often specifically when they limit how much they talk about their own solution during discovery, based on more than one million executive sales cycles.
  • No primary source studies scripted responses to “we already use a competitor” specifically. Treat any tactical script, including the questions in this guide, as practitioner guidance, not a cited statistic.

Sources

The external data in this guide draws on the sources below. Figures described in the text as estimates or industry triangulations are directional and are not attributed to a single dataset.

FAQ

Does pitching harder actually help when a prospect says they already use a competitor?
The data says no. Gong Labs found pitching reduces cold email reply rates by up to 57% across more than 28 million emails, and a separate study of executive sales cycles found reps who talk less about their own solution during discovery earn a next step more often.
What does the data say about mentioning ROI during a SaaS discovery call?
Gong Labs’ study of more than one million executive sales cycles found mentioning ROI at all during discovery correlated with lower next-meeting-set rates specifically with executive buyers.
Is there a proven script for handling the “we already use a competitor” objection?
No primary source studies word-for-word scripted responses to this exact objection. The sourced guidance is directional, ask what is not working and who else would be involved in a switch, rather than pitching differentiators, and should be treated as practitioner reasoning, not a cited statistic.
Why might a prospect who already uses a competitor be more qualified than a cold prospect?
Naming a competitor tells you a budget line exists, a category has already been evaluated, and a decision-maker has already approved spending in this space, a materially better starting position than a cold prospect with no frame of reference.
Should you ever bring up price when a prospect mentions a competitor?
The same data suggests caution. Reps who talk less about their own solution during discovery earn a next step more often, and leading with a price comparison is another version of pitching before you have asked anything.

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