Using Competitors as a Leverage Tool
When you’re renegotiating a ServiceNow contract, one of the strongest cards you can play is competition. Introducing other IT service management (ITSM) vendors as alternatives can put pressure on ServiceNow’s sales team to offer better pricing or terms.
The idea isn’t that you truly want to switch platforms; it’s that you could switch if you don’t get a fair deal. ServiceNow reps fear losing existing customers (and revenue) more than anything.
Even a hint that you’re evaluating a credible competitor can trigger sudden “retention” tactics like bigger discounts or friendlier terms. In other words, make ServiceNow believe you have options, and they’ll work harder to keep you. Read our ultimate guide, ServiceNow Renewal Negotiation Strategies.
Why Competitor Leverage Works
ServiceNow account executives know that losing a customer to a rival means a direct hit to their numbers. The threat of revenue churn motivates them far more than the prospect of winning a new customer elsewhere. If you casually mention you’re looking at another platform (and they believe you), it creates urgency on their side to make you happy quickly.
The psychology is simple: people fight harder to keep what they already have than to acquire something new. A loyal customer walking away is every vendor’s nightmare. So, a credible competitive evaluation signals to ServiceNow that their deal is at risk – and they often respond by sweetening that deal.
For example, a global manufacturer let slip that they were piloting Jira Service Management in one region during renewal talks. Practically overnight, ServiceNow returned with an improved offer – roughly 15% off the previous pricing. The mere whisper of a serious alternative lit a fire under the account team. They feared the customer might actually jump ship, so they found room to move on price.
Pro Tip: Vendors fight harder to keep what they already have than to win something new. Use that retention mindset to your advantage.
Importantly, using competitor leverage doesn’t mean you actually want to leave ServiceNow.
The goal is to appear ready and willing to switch—if needed—so that ServiceNow feels the heat.
In reality, switching ITSM platforms is costly and time-consuming, and both you and the ServiceNow rep know it.
But by doing your homework on alternatives and mentioning them strategically, you create the perception that a switch is on the table. That perception alone can be enough to extract concessions, because no sales rep wants to report a lost account.
The Right Time to Introduce Competition
Timing is everything. You don’t want to play the “we’re looking at others” card too early in discussions. If you bring up competitors at the very start of negotiations, it can seem like a threat or bluff before ServiceNow has even made an offer. Instead, wait until after you’ve seen ServiceNow’s initial proposal.
Let them put their opening numbers on the table first. Often, that first quote will be high, and you’ll negotiate it down gradually. Introduce the idea of alternatives only when you sense the talks have stalled or the rep is pushing back on giving more discounts.
For instance, if you’ve gone back and forth and the rep says, “I’m not sure we can do better on price,” that’s a prime moment to casually mention that you’re also reviewing proposals from other platforms. Done at the right juncture, this “competitive hint” can jolt the conversation forward. It tells the rep, “We have other avenues if this doesn’t work out.” Suddenly, the balance shifts – they may find an extra discount or throw in something valuable to keep you on board.
Pro Tip: The hint of competition is strongest when pricing talks have plateaued. Introduce your alternative options only after ServiceNow’s side has given all they’re willing to – then watch how quickly “not possible” becomes “maybe we can do something.”
Timing also means not waiting too long. Don’t spring a competitor at the final contract signing when all terms are set; by then, there’s little room to maneuver. Ideally, mention your alternative evaluations with enough time left before your renewal deadline so they can influence the deal, but not so early that they lose impact.
Think of it as a late-round negotiation lever: you pull it out when you need that last push to reach your target outcome.
Use our data-driven negotiation strategy – Data-Driven Negotiation – Using Usage and ROI Metrics as Leverage.
Which Alternatives Carry the Most Weight
Not all competitors are created equal in the eyes of a ServiceNow rep. You’ll want to reference credible, enterprise-grade alternatives that ServiceNow knows can handle similar workloads.
The big names that carry weight include:
- Jira Service Management (Atlassian) – Popular for ITSM, especially if you already use Jira or Confluence internally.
- BMC Helix – The modern incarnation of the old BMC Remedy, well-known in large enterprises for service management.
- Ivanti Neurons – Ivanti’s platform that combines ITSM with strong automation and endpoint management capabilities.
- Freshservice – A cloud ITSM tool from Freshworks, more often seen in mid-market but growing in larger orgs as a simpler ServiceNow alternative.
Mentioning any of these signals that you’re looking at comparable functionality – things like IT service management, IT operations, workflows, and automation – from a reputable source. ServiceNow competes with these vendors regularly, so your rep will instantly recognize the names and know you mean business.
By contrast, avoid throwing out a lightweight or niche tool just for the sake of it. Using an irrelevant name can undermine your credibility. If a vendor knows their competition well, they can sniff out a bluff. For example, a bank negotiating its renewal once told its ServiceNow rep, “Well, we’re considering switching to Zoho’s helpdesk.” The rep barely blinked. Zoho might be great for small teams, but for a large bank’s needs, it wasn’t a believable threat. The account team likely knew this and didn’t feel any pressure; they called the customer’s bluff by essentially ignoring it.
The lesson: stick to competitors that ServiceNow itself would fear in an enterprise deal. One well-chosen name is far more powerful than a list of five obscure ones. You want the rep’s internal alarm to go off – “Uh oh, we could lose to BMC (or Atlassian, etc.) here.” That thought will motivate them to fight harder for your business.
How to Present Competitive Interest Professionally
How you bring up competitors is as important as when you do. This is a delicate maneuver – you want to sound prudent and businesslike, not aggressive or desperate.
The key is to frame your interest in other solutions as due diligence rather than a direct threat. You are simply a responsible organization exploring all options, as any sensible business would.
Never storm into a meeting and say something like, “If you don’t cut the price, we’re moving to Jira!” That kind of confrontational stance can sour the relationship and put the ServiceNow team on the defensive. Instead, keep your tone calm and analytical.
You might say, for example:
- “We’re reviewing a few other platforms to validate our total cost of ownership and ensure we’re making the best long-term investment.”
- “Our procurement policy requires us to evaluate alternative vendors for any major renewal, so we’ve been looking at other ITSM solutions in parallel.”
Phrases like these send a message that it’s nothing personal – it’s just smart business. You’re not threatening to leave out of spite; you’re comparing value and fit. This approach encourages the rep to engage with you (“What have you found?”) rather than get upset. It also subtly reminds them that they are in a competitive marketplace and cannot take your signature for granted.
Pro Tip: Curiosity gets you discounts — confrontation gets you ignored. By calmly saying you’re exploring, you pique ServiceNow’s curiosity (and concern) enough that they’ll ask how they can keep you. If you issue ultimatums instead, the rep might dig in or escalate the deal to higher management, making it more rigid. Stay professional, polite, and purposeful. You want the ServiceNow team to respect you as a negotiator with options, not see you as an adversary.
Using Competitive Quotes or Demos
If you’ve gone as far as collecting quotes from ServiceNow’s competitors or even doing product demos, you can use that evidence – carefully.
Having concrete pricing or hands-on experience with another tool is powerful, but you don’t want to overplay it and corner the ServiceNow rep completely. Here’s how to balance it:
- Mention numbers in general terms. Let your rep know, “We’ve seen initial pricing from another vendor coming in around 30% lower for similar modules.” This plants a seed that ServiceNow is financially off the mark, without handing over the actual quote. It’s usually enough to get them thinking hard about their pricing. You don’t need to share the document (and often shouldn’t, unless formally necessary).
- Reference your demo or pilot experiences. If you’ve test-driven a competitor’s platform, casually bring that up: “We did a pilot of BMC Helix with our IT team last month to compare functionality.” This signals serious intent. It shows you’ve invested time, not just window-shopped. The rep will realize you aren’t bluffing – you have real data on how a switch might work.
While these tactics add credibility, avoid handing over full competitor proposals or detailed proof right away. The moment you send a competitor’s quote to ServiceNow, the negotiation can shift into a different mode.
It might trigger an internal escalation on their side – potentially to a hardened procurement team or higher-ups – which could slow things down or cause them to dig their heels in on certain terms (since now it’s a more formal price-war scenario).
In some cases, if you show all your cards (like an exact quote of 40% less), the vendor might respond with skepticism or simply say, “That’s a great deal, maybe you should take it,” as they might call your bluff if they think you won’t actually switch.
If you are running a formal RFP with multiple vendors, then sharing quotes will eventually happen in a controlled way. But in a private negotiation, keep some mystery. It’s often more effective to hint that “the other guys are giving us X% off” than to present a full invoice of theirs. ServiceNow will wonder just how far they need to go to match or beat it, which usually results in them proactively improving their offer.
Pro Tip: Numbers hint, proof threatens — use the former. In negotiations, a little ambiguity can work in your favor. Let the vendor worry about the competition potentially undercutting them significantly, but don’t do their homework for them. By the time they demand to see proof, you’ve likely already gotten the concessions you wanted.
Combining Competition with Usage Data
For maximum leverage, consider pairing the “competition” card with a data-driven argument about your current usage and costs. This one-two punch hits the vendor from two angles: price and value. Essentially, you say, “Not only is there a cheaper alternative out there, but we’re also not fully utilizing what we have – so this deal needs to improve.”
ServiceNow customers often discover they have under-utilized licenses or modules (aka shelfware). Maybe you bought 1,000 ITSM licenses but only 700 are actively used, or you have expensive add-ons that your team hasn’t fully adopted.
Bring this up in negotiations: “Looking at our utilization, we’re only using about 70% of the features we’re paying for.” This alone puts the rep on the back foot, because it questions the value you’re getting.
Now, add the competition angle: “Given our usage levels, we’re evaluating whether a different platform might align better cost-wise. Competitor X’s proposal is more in line with what we actually use.” This statement is powerful.
It forces the ServiceNow team to justify both why their product is worth the premium and why their price is higher. You’ve basically said, “We’re overpaying relative to value, and others will charge us less for just what we need.”
A logistics company applied this strategy, and it paid off. They showed their ServiceNow rep data on low usage of certain modules (proving they weren’t getting full value), and they casually mentioned that they were in talks with BMC Helix to possibly trim costs. The result? ServiceNow didn’t want to lose them and extended their existing discount level for an additional two years – even though normally, discounts would have decreased due to the under-use. By using facts and an alternative vendor together, the customer made a compelling case that secured them a significantly better deal without an actual switch.
When you have hard data (usage, costs) plus a viable alternative’s quote, you’re negotiating from a place of strength and logic. It’s much harder for the vendor to dismiss or spin the conversation.
They can’t just say “our tool is better, don’t compare on price” because you’ve demonstrated you’re not fully using the “better” tool. It nudges them to either help you use it better (perhaps via services/training) or cut the price to match the value you are getting.
When to Stay Silent
Knowing when not to mention competition is just as important as knowing when to mention it.
If your contract renewal is still far off (say, more than six months out), or if you haven’t actually evaluated any other solution yet, it’s usually wiser to hold your tongue about competitors. Raising the specter of a switch too early can backfire.
For one, if the renewal is distant, the ServiceNow rep might log your comment and then not take it seriously later (“Oh, they’ve been saying that for a year”).
Or worse, they might start subtly probing or intervening – for example, bringing in higher-ups or extra “customer success” folks to check your satisfaction, which could tip your hand that you were bluffing or just create awkward tension in the partnership.
Additionally, if you mention a competitor without a well-formed plan, the rep may ask questions you’re not ready to answer: “Which solutions are you looking at? What are you trying to solve that we aren’t?” If you don’t respond confidently, it could undermine the threat. Silence until you’re prepared is usually smarter.
The optimal window to introduce competitors is close to the renewal – late enough that switching feels like a real possibility (because the deadline focuses everyone’s minds), but not so late that there’s no time for ServiceNow to react.
Often, this is in the final few weeks of negotiation. Before that, work on gathering internal consensus, usage data, and perhaps soft research on alternatives, but keep it under wraps.
Pro Tip: Leverage has seasons — use it right before they think you’re signing. In other words, don’t play your big card in the preseason. Wait until the deal’s closing phase is in sight, then use the competition angle to tip the scales in your favor.
Leverage Table – What Works vs. What Backfires
To summarize some of these tactics, here’s a quick comparison of competitive leverage moves that are effective versus those that can misfire in ServiceNow negotiations:
| Tactic | Result | Why It Works (or Fails) |
|---|---|---|
| Mentioning credible alternatives | Works | Triggers fear of churn and prompts a retention discount offer. |
| Bluffing with weak vendor names | Backfires | Reps know the market; an unbelievable threat won’t scare them. |
| Citing a verified pilot or demo | Works | Shows you’ve invested time; increases the credibility of a switch. |
| Sending over full competitor quotes | Risky | Can force formal escalation and harden the vendor’s stance. |
| Pairing usage data + competition | Strongest | Combines logic and leverage, making your case undeniable. |
Use the “works” tactics to your advantage, and be cautious about the risky or counterproductive moves. The combination of credible vendor names and concrete actions (like pilots or usage analysis) provides the most authentic leverage. Conversely, transparent bluffs or overly aggressive maneuvers can erode your negotiating power.
Avoiding Relationship Damage
Bringing up competitors can be a sensitive topic – after all, you’re indirectly telling your current vendor that their baby isn’t the only cute one in the nursery.
To avoid souring your relationship with ServiceNow, maintain a tone of collaboration and respect. You’re not trying to start a fight; you’re trying to ensure your company gets a fair deal.
Avoid using ultimatums or harsh language. Phrases like “If you don’t match this price, we’re gone” will put anyone on the defensive. Instead, use neutral phrasing.
For example: “We’d prefer to continue with ServiceNow, but we have to consider all options to meet our budget and requirements.” Or, “We’re hoping to make this work with you – at the right price point – because continuity is valuable to us.” This way, you reinforce that staying with ServiceNow is your first choice (which they want to hear), as long as they make it worth your while.
It’s also wise to acknowledge the partnership: “We value our relationship with ServiceNow, and as long as we can find a competitive and value-aligned agreement, we’d like to keep it going.”
Statements like this remind them that the door is open for them to win your renewal, and that you’re not just trying to strong-arm them. It puts the onus on the vendor to preserve the partnership by meeting your needs.
Remember, a negotiation can get tense, but it doesn’t have to get personal. Keep discussions focused on business factors – costs, value, requirements – not on accusations or threats.
If you remain calm and professional, it actually sends a strong message: you’re confident because you truly have alternatives lined up. Ironically, the more composed and cordial you are while mentioning competitors, the more seriously the vendor takes the threat. They’ll think, “They’re being awfully rational and unemotional about this… maybe they really do have a Plan B.”
Pro Tip: Your calm professionalism tells them you have real alternatives. If you stay cool and factual, the vendor senses that you’re not bluffing out of frustration – you’re negotiating from a position of strength. That vibe can prompt ServiceNow to respond with equal professionalism by improving the offer rather than risking a standoff.
Read about ServiceNow sales tactics, Anticipating and Countering ServiceNow’s Renewal Sales Tactics.
When Competition Isn’t Enough
In some situations, even the savviest use of competition might not yield a deeper discount. Perhaps you’re already at a very high discount tier due to being a large customer, or ServiceNow knows they’ve given you near rock-bottom pricing in previous deals.
If the sales team genuinely can’t go much lower on price, you might hit a ceiling with discussions about pure competitors. But that doesn’t mean the conversation is over – it just shifts to other bargaining chips.
If further price cuts are off the table, leverage your competitor’s interest to negotiate other favorable terms. For example:
- Co-terming or Simplification: If you have multiple ServiceNow contracts or modules with different renewal dates, request to align (co-term) them into a single agreement or simplify your licensing structure. Vendors often agree to this during negotiations, and it can make management easier for you (sometimes with a small financial incentive or reduced complexity).
- Renewal Timing Pressure: Vendors have quotas and end-of-quarter or end-of-year pressures. If your renewal happens to line up with Q4 or a key sales deadline, subtly use that. Indicate that you’re evaluating options and could delay a decision, which the rep will interpret as risking their year-end number. They might concede better terms not just on price but also on aspects like payment schedule, extended term length, or included add-ons.
- Shelfware and Optimization: Instead of a lower price, you could request flexibility to swap out unused licenses for other products or for additional credits/services to ensure you get value. For instance, “We’ll stay with ServiceNow, but we need to address that we’re paying for Module X that we aren’t using – can we replace it with something else or receive training credits?” The mention of a competitor can spur them to be more generous in solving these issues, as a way to keep you.
Consider the case of a large healthcare group. They were at a maximum discount already due to their size, so when renewal came, ServiceNow initially flat-out refused a bigger percentage off. The customer then signaled that they were still exploring other platforms due to concerns about the total cost of ownership. While the price per license didn’t drop further, ServiceNow responded by offering a 0% uplift cap for the next 3 years (meaning no annual price increases) and threw in some extra support services at no charge. The customer retained their current pricing level and gained price stability—a win achieved by using competitive leverage to negotiate contract terms when outright pricing had hit a wall.
The takeaway here is that “competition” doesn’t only buy you discounts; it can buy you protections and extras that also have real value. If ServiceNow truly believes you might walk away, they’ll look for any way to make the deal more appealing. Sometimes that’s a lower price, but other times it’s about locking in favorable conditions that save you money and hassle in the long run.
Competitive Leverage Checklist
Before heading into your next ServiceNow negotiation, run through this quick checklist to ensure you’re set to use competitive alternatives as leverage effectively:
- Gather proof of alternative platform capabilities. Do your homework on at least one credible competitor (features, case studies, maybe even a trial) so you can speak to its viability.
- Time the mention carefully — only after reviewing ServiceNow’s initial proposal. Let them put their offer out first, and use the competitor angle as a mid-to-late negotiation lever.
- Keep tone factual, not emotional. Stick to business reasoning (“total cost of ownership”, “due diligence”) when discussing why you’re looking around.
- Pair competition with under-utilization or price data. Bolster your case by showing you’re not using everything you pay for, or that you have benchmark pricing data suggesting a better deal elsewhere.
- Use credible names, not bluff vendors. Reference well-known alternatives that ServiceNow takes seriously; avoid citing providers that don’t match your enterprise needs.
- Always leave the door open for renewal — just on your terms. Make it clear that you prefer to stay with ServiceNow if they can meet your requirements, as this encourages collaboration instead of hostility.
Finally, remember this:
“Competition isn’t confrontation — it’s confirmation that you have options. The moment ServiceNow believes you might actually walk, the negotiation finally becomes real.”
Read about our ServiceNow Negotiation Service.
