Competitors are everywhere and they are ready and working hard to gain more grounds. To keep on striving in this fierce business world, one of the important things that you need to do is study your competition, learn how to do competitor analysis and use the gathered information to your advantage. This will always keep you an edge and provide you strategic benefits.
Below are 6 easy steps on how to research your competition.
Discover Your Business’s Competitors
In order to conduct a quality competitive analysis, you have must first identify your top 5 to 10 competitors. Be realistic in your findings and consider those businesses that offer the same value to the market like you do on a daily basis. Whether you are a local, national or international business, you definitely have counterparts that you cannot stand and they seem to be winning more than you do. If you do not know them, don’t worry. Google is your friend –simply Google search for the services or products your company offer or use keywords that you rank for.
Find Out what they offer and how they do it
After you have successfully identified them, then next step is to analyze what they offer. Fortunately, most businesses go all the way to give detailed description about their products or services on their website. Use this to your advantage –this is one smart way on how to gather competitive intelligence. List the services or products that are similar to yours and those that you don’t offer.
Analyze Your Competitor’s ADVANTAGE
Once you’ve listed the products or services, conduct an honest comparison and write out what make customers prefer them to you and other competitions. You can also source for their customers’ reviews which will clearly indicate the edge they might have over you.
Analyze Their DIGITAL FOOTPRINT
The world is now a global village and you cannot afford to be lag behind here. The majority of sales and marketing now occur on the internet so you have to discover your competitions online presence and how well they rank. There are many tools that focus on this like SEMRush, HubSpot Website Grader and Ahrefs –they give you detailed analysis about how well a website is doing. Other (free) sources can be found on this blog.
Here are 3 things you should have a clear answer on:
- Online Presence
- SEO Structure
- Keyword Performance
Identify Their Weakness
If Mark Zuckerberg didn’t recognize what MySpace was doing wrong, if Amazon didn’t see the value of efficient order shipping and fulfillment, then there’s no way they could have outran their competitions. Identify your competitors’ weakness, list what make customers choose you over others and vice versa. This will give you a clear picture of where you can do better.
Go further than product weakness but try to find quick wins and growth hacks on his delivery method, content or customer care. Every business can compete on 3 important pillars:
(More info about this can be found on this blog)
- Product leadership
- Customer Intimacy
- Operational Excellence
Discover where your competition is the weakest and easiest to compete on.
Pin Point How You Can Be Better
Your chances of outranking will be apparent based on the weaknesses that you have listed out. Although some of these opportunities will require a little more hard work, time or resources, it is still a good way to start. Gather your team, deliberate on what opportunities to prioritize and work on them.
From our experience, a useful and effective way to quickly design, develop and create changes is the Design Sprint Methodology
This is of course easier said than done. This quick overview might give you a first impression on how to beat one specific competitors, but what about everybody else? Should you adjust your strategy because of one competitor or are there other important players that have a different outcome. It will be key to keep doing this exercise in a structured, automatic and systematic way, before you can make real conclusions.
DataScouts provides you the tools to do this in a systematic and automatic manner. See how we can help you with this issue today!