In this age of cut-throat competition, unless you know where you stand with respect to your competitors, your business cannot really prosper. And for that, competitive analysis plays an indispensable role.
Competitive analysis helps you understand the ins and outs of your competition with other brands, and makes it easier for you to overcome potential drawbacks. The primary reason that drives most businesses to run competitive analysis regularly is its ability to make their products and services different and better from their peers.
Competitive analytics helps you see the future of your business, lead you to areas of better opportunities and provide you with a basic reference with the help of which you can measure growth.
If you are planning to conduct a competitive analysis to stay on top of the latest market trends, here are some simple yet effective tips to help you.
First and foremost – understand your competitors
In order to conduct an effective competitive analysis, you need to understand with whom exactly you are competing. It is important to note that everything that works for businesses similar to yours will not always work for your business. Therefore, analyze your competitors closely and act accordingly.
To make this easier, divide your competitors into two basic categories: direct and indirect ones. Direct competitors are those involved in a similar business like yours and can act as a substitute for your products. On the flip side, the indirect competitors offer products entirely different from your business but satisfy customers’ needs without fail.
Analyze your competitor’s products
Conducting a routine competitive run can be made more productive if you could determine your competitors’ product lines and quality. The major area to focus on is their pricing, discounts, and other offers to the customers. Understanding their market share, types of frequent customers, customer service strategies, and more.
Check online reviews
In order to check the customer reviews of your competitor’s businesses, you will need to visit sites such as Facebook, Google, etc. These online reviews can provide you with a deep insight into how your opponents respond to customer queries and the quality of services they provide for their customers.
By reading negative reviews, you can understand where they have gone wrong, and you can take effective measures to prevent the same from happening with your business. Similarly, positive reviews indicate the areas where the company has excelled.
Try to communicate with your competitor’s customers
Reach out to your competitors’ customers, get in touch with them personally, and ask about their unpleasant experiences. This way, you not just learn about their customer service, you are giving them more attention. Understand their preferences, and make sure you develop strategies to develop these unmet business strategies. Before ending the session, thank the customers for their valuable time.
Learn how competitors have improved their marketing strategy
Know about their keyword density, internal linking, image ALT tags, and more. This helps you understand keywords you lack and have not yet tapped into. Understand the types of content extensively shared and linked and compare them with your content. Know about the sites that are connected back to your completer’s website and not yours, and which all sites share the contents of your competitors.
By constantly monitoring the competitor’s website, you could gauge the efforts they put in. Check their business strategies like podcasts, FAQ sessions, blogs, and more. Check whether they regularly post videos and content related to their products, understand more about offline and online advertisements they offer, visual content like infographics, cartoons, and more. Please take a look at these content qualities and compare them the same with yours.
The next step is knowing the frequency of posting content. If the content quality is poor, there is no point in posting content regularly doesn’t matter. You can take advantage of this factor and add what your competitors lack to your content. Keep an eye on their performance on Instagram. Facebook, Twitter, Snapchat, and other social media platforms. Check the amount of time they spend engaging with customers on their social media platforms.
Competitive analysis needs careful planning and consideration of diverse parameters. But the process is not really as complex as it appears. You can follow these tips shared here, to streamline your efforts, and fetch accurate results.