When it comes to business, competition is a part of life. So if you can’t change it, why run a competitive analysis to begin with? The reality is, day by day, new competitors join the market. If you aren’t keeping a close eye on them, they might even move in on your customers.
But by running a competitive analysis, you can stay ahead of your competition. You can keep a close eye on what the consumers want. And you can make sure that your brand is the one ready to give it to them.
What is a Competitive Analysis?
A competitive analysis is a multifaceted approach. It looks at the direct and indirect competitors within your market. It analyzes ways you can improve your business and set yourself apart from your competitors.
But that’s not all. By utilizing a strategic analysis of your competitors, you can also discern deeper insights into the most important part of your business – your customers.
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Benefits of a Competitive Analysis
When you run a competitive analysis, you’re looking to answer very specific questions about your business. Using these answers to develop your digital marketing strategy is key to your brand’s success.
What are some other products or services your customers using to solve their problems? Are there any solutions they particularly like? Are there any they strongly dislike? Why do they like or dislike those products/services?
Which segments of your market are being targeted by your competitors?
Which types of customers seem to gravitate toward your different competitors?
Is there one primary competitor or are there segments that largely fall under specific details, demographics, or preferences?
Why run a competitive analysis?
Because you always need to be on the lookout for other strategies.
What are your competitors doing to stand out? How do they appeal to customers? What value proposition are they focusing on? Which features and benefits do people know them for? How are they highlighting these on their website?
Customer Views and Preferences
What are some product features that customers seem to care about the most? How do they respond to your competitors? Are they generally positive? Why or why not? Are there any needs the customers have that no other company is meeting?
What to Do Now?
Once you’ve answered these basic questions, you can start to move forward with your marketing strategy. By discerning the strengths of your competitors, you can improve your own plan to take the market.
If you find that the data you’ve compiled just doesn’t lead anywhere, it might be time to get help from an agency. Planify™ works with you to shift those metrics to actionable steps. Only then can your business thrive beyond your inner circle to actually scale and succeed.