Many businesses understand the importance of competitor analysis but generally only focus on pricing and products. With the arrival of social media, understanding your competition’s marketing techniques and how you can improve your company’s digital marketing strategy has become as important as pricing and product research. What are some benefits of conducting a competitive analysis?
Customer reviews highlight what your competitor’s product lacks, offering you the opportunity to add elements to your product that will meet their needs.
- You can identify marketplace opportunities on which to test out new marketing strategies your competition is not using.
- Learn what your competition is doing well and what you need to do to stay relevant and competitive in your industry.
- Gain a benchmark against which you can measure your company’s growth.
At Customer Perceptions, we offer competitor analysis services that measure your competitor’s customer journey, pricing, point of sale (POS), promotions, policies and procedures. Let’s look in more detail at competitor analysis.
They are Industry Specific
Are your ideas about your competitors and the market up to date and accurate? An industry-specific competitor analysis creates a more comprehensive picture of the market and industry in which you compete. There are similarities between industries, but there are also differences. The hospitality, retail, and financial industries offer promotions as part of their business strategy, but their target market and products differ.
Do you want to measure, compare and benchmark your performance against your competitors? We can do a competitor analysis for clients in the travel, restaurant and dining, retail and online, hospitality and tourism, medical and care, financial, and professional services industries.
Strengths & Weaknesses From Other Businesses Are Identified
Have you spent time with your sales, marketing, and customer service teams to gather the data you want to use to benchmark your company? The next step is to collect information about your direct competitors to learn about their strengths and weaknesses. Research the following factors:
- Product. How do the qualities and features of the products compare to your own?
- Pricing. Can you estimate their cost structure? What is their discount policy?
- Place. What is their geographic reach compared to your business?
- Promotion. What is their presence on social media, and what marketing tactics are they using?
- Positioning. Review their websites, catalogues etc. What is their unique selling proposition?
- Reputation. What are people saying online, and on social media about your competitor’s products and services?
- People. How big is the organisation?
- Partnerships. Who are their suppliers and how long have they been working together?
- Once you have all the above information, do a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis for an effective competitor analysis.
Market Opportunities are Revealed
A competitor analysis will reveal market opportunities, however, look further than your direct competitor towards indirect and even substitute competitors. They might offer other insights and markets you never considered. Indirect competitors are businesses in the same category as yours but have different clientele, products, and services. An example of an indirect competitor would be a winery and brewery. Both sell alcohol, but their products and clients are not the same. A substitute competitor has different products and services than you, but they target the same customers in your geographic area. They might be doing something distinctive to attract potential customers.
The Most Important: Performance Evaluation
Once you collect all the information and complete the SWOT analysis, it is time to do a performance evaluation. How does your business, products, or services compare to your direct, indirect or substitute competitors? What competitive advantage do you have that appeals to your target market? When you understand where your brand is positioned, make strategic decisions that help grow your brand and translate those into actionable results with timelines.
At Customer Perceptions, we follow a partnership approach. We adapt our solutions to suit your changing business needs. When was the last time you benchmarked your business against your competition in the marketplace? The importance of competitor analysis cannot be underestimated. Contact us today.