Think you know what makes your business stand out?
Before you pat yourself on the back, answer one question: Do you really know what your competition is up to? Understanding your competition is a crucial component of understanding your own place in the market. It can help you spot new opportunities for growth and ensure your business stays a step ahead.
Enter, stage left: Competitive analysis.
Competitive analysis involves doing research to identify your competitors and compare their strengths and weaknesses with your own. This research can highlight market trends, gaps in your marketing plan, future threats to your business, and opportunities for growth. It will also give you a better idea of all the options a potential customer has when they’re considering the type of product or service you offer.
In short, gathering this data will help you better position your company for success.
Let’s explore how to get to know your competition through a competitive analysis, some tools that can give you an edge, and how to put your newfound insights into action.
The first part of any competitive analysis is to determine who your competitors are. There are two main types of competitors to consider:
Ideally, you want to put together a list of 5-10 of your closest competitors, including a mix of both direct and indirect ones.
To find your competitors, the best place to start is to do a simple Google search for your product or service in your area. The top results are likely to be your biggest competitors…but not always. Look through the list of search results and consider which companies offer products or services that are most similar to yours, as well as which are after the same type of customer.
Once you have your list of competitors, keep track of them in a spreadsheet. For each company, include details like:
From there, continue to track what your list of competitors is doing over time (promotions, marketing campaigns, pricing changes, etc). Gathering this data will give you a better idea of where you stand in the market.
Now that you’ve compiled some basic information on the competitors you want to analyze, it’s time to dig deeper:
You’re looking for both what your competition does better than you and what they do worse.
When comparing your products or services to those of your competitors, your analysis should break down each product/service feature by feature (including price, quality, target audience, ease of use, design, etc.)
As you look at the kinds of marketing campaigns and strategies your competitors use, consider their:
What story are they telling through these platforms? What audience are they targeting, and what value do they bring to that audience? How do they interact with customers and prospects online?
Also consider the user experience they provide on their website. Is it easy to navigate? Do they clearly communicate what products or services they offer? Is their content well-written, up-to-date, and, most importantly, helpful?
Finally, examine their customer reviews and social media comments to see what people are saying about them online.
As you look through these aspects of each competitor’s business, pay close attention to what they do well that you aren’t currently doing, and vice versa: what they aren’t doing that you can do well. This will highlight potential opportunities for you to get ahead in the market.
Not sure where to start gathering all this information? Here are several tools and strategies you can use to research your competitors. (Bonus: most of them are free!)
These tools can give you valuable information about how your competitors communicate, what they value, what their products are like, what customers are saying, and even what SEO keywords they’re targeting and who their employees are.
And this is just the tip of the iceberg!
There are SO many ways to gather information about your competitors, both online and off. Honestly, if you were that kid who wanted to be a spy, you’re going to LOVE doing competitive research!
Now that you have all this juicy info about your competitors, it’s time to put it into action. Use what you’ve learned to better understand where you sit in the market and brainstorm improvements you can make to your:
Your competitive analysis should highlight at least one area where you can make improvements. This information is GOLD: It can help you discover gaps in your marketing so you can more strategically target your efforts.
From here, make competitive research a regular part of your marketing strategy. Continually monitoring your competition will help you stay ahead and offer greater value to your customers.
Ready to get to know your competition, see how your business stacks up, and learn where you can get ahead? Let’s chat!
At Wild Fig, we offer half-day marketing strategy sessions—the perfect tool for uncovering competitive insights and building a customized marketing strategy to help you achieve your goals.
Schedule an exploratory call today to see if a half-day marketing strategy session is right for you. Let’s take the guesswork out of growth and help you outsmart the competition!