Knowing what your competitors are up to helps you self-introspect the areas that are lacking which in turn helps you improve. No, we are not saying that you should act as a watchdog; we are saying that you should know what procedures and strategies they adopt to cater to the market so that you can stay updated with the latest marketing trends.
This article is going to a guide for those businesses who want to understand how competitor analysis can be done for gaining fruitful results.
In this article, you will find the following:
- What does Competitor Analysis Mean?
- Benefits of doing Competitor Analysis
- Source of Information For Competitor Analysis
- How to do a Competitor Analysis
Let’s get into the details!
What does Competitor Analysis Mean?
Competitor analysis is a research of the existing competitors in your industry, products, or services that they offer, and the business strategies that they follow. The process involves identifying the strengths and weaknesses of the competitors to set a benchmark of the strategies to be followed for marketing by your business.
A well-researched analysis helps you understand the lacunas in your current processes and serves as a base for further improvement. With an advanced technology competitor analysis has now become a cakewalk at Pxida. They assist businesses in analysis and surveys using the latest analytics technology which provides you an insight into what the customers think of your closest customers.
Benefits of Competitor Analysis
Healthy competition is good for businesses and well the industry. But with cut-throat competition and so many new market players coming in, it is important to carry out competitor analysis to understand the areas that need improvement in your business and gain a competitive edge. Competition analysis provides you the following advantages:
Regular competitor analysis helps you understand the conditions of the marketplace in which you and your competitors are located. This will give a fair idea about your strengths and weaknesses.
- Develop Marketing Strategies
Your marketing strategies should be framed in response to your market research. Carrying out a competitive analysis gives you an update about the marketing strategies that other businesses in the same industry as yours follow and based on the analysis you can also select an advanced marketing strategy used by your competitors to meet your marketing goals.
- Revamp Your SEO Techniques
SEO is a great tool when it comes to digital marketing. Knowing the keywords that your competitors use to get more clicks will help you revamp your existing keywords and develop new ones so that you can ace the game of digital marketing.
You will get to know about the products and services that are not being offered by your competitors. This gap can serve as an opportunity for you and you can tap on this opportunity by introducing such products and services in the market that are not being offered by your competitors.
- Understand Customer Feedback
Competitor analysis involves invoking feedback from the customers such as by way of surveys. If you are able to get a hold of what the customers think of other businesses as well as yours, you can avoid making such mistakes pointed out by the customers in the future. Pxida helps you achieve this objective by creative useful surveys for you to generate responses from the customers about their feedback.
Sources of Information for Competitor Analysis
Competitor analysis involves gathering information about the competitors regarding the strategies that they are adopting. Gathering such information can be done by deploying the following sources:
By visiting the websites of your competitors you can get information about their key customers, market segments, products, and services offered by them, and similar things.
Identify the presence of your competitors in social media channels such as Facebook, Instagram, Pinterest, LinkedIn, and so on. Understand their posts and how they carry out marketing through their posts.
Annual reports are useful information about the company that gives you an idea about the performance of the company, its products and customers and the latest developments in the company.
Customer surveys like the ones created by Pxida help you identify the gaps in the market and the feedback of the customers about your competitors. A well-created customer survey can provide you with an insight into the actions that you should take to improve your business.
- News Articles And Clippings
Understand why your competitors are trending in the news. Analyze the information contained in the information, whether positive or negative, and devise your strategies accordingly.
How to do Competitor Analysis
Here is a step-by-step approach towards conducting a competitor analysis.
- Identify Your Competitors
The first step in a competitor analysis is the identification of your competitors. Prepare a list of some top businesses that are your competitors. Also, for better analysis break down the competitors into two types namely direct competitors and indirect competitors.
Direct competitors are those that deal with the same goods and services as you do. Further, they operate in the same geographical area or the online channel and thus offer you a higher level of competition. Indirect competitors are those that offer similar goods and services in the same market arena. Understanding which marketing practices they use will help you improve your techniques and thereby increase your revenue.
Content analysis is a great way of understanding the marketing tactics used by competitors. This will give you an in-depth idea about the strategies that are being used by your competitors by way of content marketing. Look for the platforms where content is being shared by your competitors such as newspapers, social media channels, etc. Also, analyze the content quality and understand how you can improve your content against them to add more audience traffic.
Your content may be at par with your competitors and also you are keeping your content updated as frequently as your competitor. However, SEO can make a great difference in the response that is being generated by them for similar content.
Understand their SEO and the keywords that they use for reaching a larger audience. You can either follow the same keywords or modify them and inculcate them into your content for better ranking. Thus, try to be one stead ahead of what your competitor is up to. Identify the gaps in their marketing tactics and use them in your benefit.
- Understand Social Media Engagement
Social media engagements play a pivotal role in understanding the performance of businesses in terms of customer reach. When utilized properly social media channels can help businesses grow and reach larger audiences.
Different businesses engage in social media channels differently. It is important to understand how your competitors use social media channels and what are their marketing strategies. Analyze their activities on social media profiles and compare those with yours to look for where your business is lacking. Learn from what they are doing.
- Analyze Areas For Development
After you have gained information from the various resources it is time to process the information.
There is one more thing you can do before you finally move to the analysis part. Gain insight into what your customers think of your competitors. This can be done by conducting online surveys and Pxida can help you with this by creating a dashboard for you where you can analyze customers’ responses using various analytical parameters.
Now with all sets of information available to you, identify those areas that require your attention for improvement. After you have identified the areas for improvement you can draft strategies to actually make use of them.
You can follow the steps that we have shared in this article for conducting competitive analysis. This will help you identify your position in the market and serve as a base for improvement. You can then take steps for enhancing your presence in various marketplaces and reaching larger audiences.