They're product isn't better, nor is their team. It's because they stopped treating security compliance as a future problem and got to work today. It's the proactive diligence that puts them on enterprise shortlists.
The businesses that got ISO 27001 certified and their SOC 2 audit reports attested are not competing with you anymore. They've moved up to the next level. They bid on contracts you don't even know exist. They can charge international clients three to four times the domestic rate because the client trusts in their data security. The gap between "compliant" and "not yet" is no longer a technicality, it's the line between businesses growth and the ones left behind.
You don't lose enterprise deals because of your product. You lose them when you show up empty-handed when asked about security
That sentence may be uncomfortable to read if it's true for you right now. The good news is that you can change it.