Competitive intelligence is big business. Recent studies showed that 89% of the participants recognises competitive intelligence as a strategic asset, a must have. But why? What are the benefits of competitive intelligence?
Can it help you improve your product? Increase your customer satisfaction? How can it benefit your strategy to know you competitors?
In this article, you will discover the importance of competitor analysis.
No more guessing
Making assumptions is bad in business because often times, assumptions are wrong. And they can take an awful turn on business. By conducting a thorough competitive analysis, you will get accurate and factual data about your competitors and market.
Find new opportunities.
Knowing your competitor weaknesses may instigate ideas for improvements of your service or product offerings and bring innovative ideas towards improvement. You will discover what they are doing wrong, how to avoid such and ways they can improve and use it to your advantage.
Ideas can never run out when you commit to constant learning. This is one of the benefits of competitive intelligence. You will get to discover many untapped opportunities. You can focus more on solving customers unmet needs in an efficient manner.
If you want to improve your service and product offerings of your business, then you have to conduct competitive analysis regularly. This will indicate where your business needs improvement in terms of product or service performance, company policy or customer communication. For instance, if you are a service provider, you may discover that your service policies do not meet up with your competitors’ standards and customer anticipations. This may cause you to re-strategize and improve your service policies.
DO what you do best, even better.
Knowing the main reasons why your loyal customers do business with you instead of your competition is an importance of competitive intelligence. You should keep your weaknesses in mind but it is more important to focus on your strenghts. Use your business’s competitive advantage and apply it efficiently to win more customers.
Competitive analysis will reveal if you are charging way below or above market for your services: you will discover if you are charging twice as much as your competitor and if this is the reason why your sales might have dropped or if your charge less, which may have resulted to low profits for the business. With information about competitor pricing, you will be able to make wise decisions in terms of your own pricing.
See the bigger picture.
The market is usually excited about new features and latest trends; these attract even potential customers and prevent the loyal ones from leaving. By learning about other business, technologies and buzz in your market, you can discover the latest trends. See if you can incorporate it into your products and services innovatively.
For instance, there are some industries that conduct black Friday yearly and this has given them a competitive edge over other companies in their industry. By researching about your competitors, you get the chance to learn more about how the market place runs and customers spending culture and season.
The benefits of gaining systematical competitive intelligence seem clear. Don’t know how to start? Read more on how to get started in 6 easy steps.