By Relevance of competitor analysis and how to conduct it
Competition is part of business. You cannot start a business thinking that you won’t face any competition. Since competition is unavoidable, you need to be updated about your competitors now and then. You need to know what they are doing or what they are planning. You being proactive rather than reactive is very important when it comes to analyzing your competitors. Competitor analysis is therefore assessing the strengths and weaknesses of your competitors.
How to conduct an effective competitor analysis
Know who your competitors are
First, you need to be aware of who your competitors are. You may find that what works outright in a business similar to yours may not be positive when it comes to your business.
Determine what type of products or services your competitors offer
Get to know what quality is being offered. You can also look at their pricing and any discounts being offered to the customers. Consider questions such as;
- What is their market share?
- How does the distribution of their products and services take place?
- What strategies does the business use to differentiate itself from the competitors?
- Are they high or low-cost providers?
Do research on your competitors’ tactics in sales and the results
It can prove not easy to work out the sales analysis of your competitors. You will have to find answers to questions such as;
- What type of channels are they using to sell their products?
- What are their total sales and revenues at the end of each year?
- Do they give regular discounts on the products and services to the customers?
- How deep involved is the salesperson in the sales process?
The information you get from the above questions will help you work out with your business salesperson to outdo your competitors in the final buying stage.
Have a look at your competitors’ pricing as well as any offers
Before you price your products or services, you need first to know what your competitors are charging for similar services and products. If you feel that your product has more interesting features than theirs, you can decide to charge a little more. But again, you have to convince customers why they should buy your product, not your competitors charged slightly lower.
Also, you can decide to charge lower if you feel that there is a gap for affordable products in your industry. Either way, you need to ensure that your pricing feels reasonable. Do not forget to have a look at any perks your competitors might be offering, such as discounts and how long they last. You can opt to give unique perks that your competitors don’t have.
Analyze how your competitors marketing tactics
Checking out your competitors’ websites is the quickest way to know about their marketing tactics. Find out;
- If they have a blog
- If they post videos
- If they have a question and answer section
- If they have a podcast
- What online and offline advertisements they have
Learn the type of technology that your competitors are using
Knowing the type of technology your competitor is using can be vital and of great help for your business to increase momentum.
Have a look at what they are doing on their social media platforms
If you find yourself on the same social media platform that your competitors are using, then do more research on how that platform may help your business. Please have a look at how many followers your competitor has on those platforms, how frequently they post, and what they post. How many shares and retweets do their posts get, and if their content is original or not
Be keen on how they promote their marketing content
Please pay attention to; what keywords are being used by your competitors and how highly their content is being shared.
Benefits of competitor analysis
Now that you already know how to conduct a competitor analysis, here are some of the top benefits of doing it. Of course, it will set you apart from the competition and help grow your business to greater heights.
Competitor analysis helps you in identifying market gaps and also areas of new opportunities. You can use the market gaps to expand your business by doing what your competitors are not doing.
It enables you to measure your business growth. Through customer reviews, you will know what your competitor is not offering or what is missing in their product. You might consider taking advantage of the situation and adding those features to your products.
It enables you to identify the value of your product; you will know what makes your product unique from your competitors.
In an ever-changing industry, it is important always to be one step ahead of your competitors and maintain the attention of your customers. Competitor analysis may seem easy, but your business needs to be successful. It ensures that you are keeping up with the others in your industry. You have to stand out so that your business survives in its industry.
