How to Do a Competitor Analysis
Preparing a competitor analysis is not an easy task so why bother? Why would you put your time and energy into it when there are other business matters that clearly need your attention?
Well, the answer is really quite simple. Competitor analysis can provide you with valuable consumer insights that can help you make more informed decisions and allow you to stay ahead of the competition.
You’d want to outsmart the competition, right? If you want to lead the pack, you need to know who they are and how they position themselves in the market, identify their strengths and weaknesses, and anticipate their actions. And that’s exactly what competitive analysis will help you accomplish.
Competitor Analysis: A Step-by-Step Guide
What are the things you need to consider and where do you start? Here’s a simple process that you can follow when doing a competitive analysis.
- Identify your competitors. Know who your competitors are. This would include all the brands in your space, whether you’re currently in direct competition with them or not. Categorize them as primary (those offering the same product, target the same market, or both), secondary (offer slightly similar products to different markets or sell lower or higher versions of the same product), and/or tertiary (offer tangentially-related products and services) competitors.
- Analyze their websites. Take a look at their websites and pay special attention to their product presentation and descriptions, promotions, calls-to-action, and contact methods. How’s their SEO structure and which keywords do they use? Do they have a blog? Are their sites mobile-friendly? Which marketing channels do they use? Are they building an email list and do they link to their social media accounts?
- Identify their market positioning. Try to understand the demands and expectations of your target market, know which products customers buy from them, how they differentiate their products, and what makes their offerings unique. You can get the information you need by signing up for their newsletter, subscribing to their blog, and following them on social media.
- Review their pricing strategy and shipping options. How do they price their products across different channels (Google, Amazon, eBay, etc.) and how do they handle shipping?
- Check online reviews. See what customers say about them. Apply your learning to differentiate your business and create a competitive advantage.
- Examine their social media strategy. Your competitors’ social media accounts can indicate if there’s a viable market for your products so you better learn which platforms they use, what and how often they post, the engagement metrics they use, and their strengths and weaknesses.
Without a doubt, performing a regular competitor analysis can help you get one step ahead of the competition but if you feel you can’t do it on your own and need expert help, feel free to Contact Me for a complimentary marketing strategy session today.