Marketers claim that business owners should do competitive analysis at least once in a quarter to go toe-to-toe with your competitors. You can ask me why it is so important to do competitive analysis. And the goal of this article is to tell you about this.
The digital market research agency Adloonix is an expert in competitive analysis. We do it as a part of the market research. I also want to remind you that digital market research is an investigation of market size, online demand, direct and indirect competitors, and consumers’ behavior.
And we will start our discussion by highlighting the reasons to do a competitive analysis.
>> Here is the link to our Market Research service which includes the competitor analysis 🔗
🔍 Reasons to do a competitive analysis
1. Learn all information about competitors
Competitive analysis is the most reliable way to find out current information about your opponents. As a result of our collaboration, we give you the list of your competitors with a detailed analysis of their strong and weak sides, description of their product baskets, and prediction of their future innovation.
2. Improve your content marketing strategy
The analysis of the competitors’ content can help you to have leverage upon them. We can determine the quality of their content, how often they update it. It gives you a better understanding of what you should improve, where to put more effort. It can attract competitors’ clients and generate more leads.
I want to emphasize that customers use services or products if they feel informed and engaged. You should regularly publish useful content to keep in touch with your customers.
3. Understand how to interact with customers
The valid advantage of a competitive analysis is communication with new customers. But now clients become more demanding than earlier. You have to be sure that your product will satisfy the client’s needs.
You should know that customers often have a list of requirements. And competitive analysis helps to define these requests to choose the best marketing strategy and increase your sales.
Moreover, you may detect what the consumers want and need. For example, you can discover the demand for a non-existent product. So you can launch this product or service that will target more customers.
4. Increase income
After competitive analysis, we can find new sources of revenue, increase ROI (Returns on Investments), and secure long-term business success.
One more point to remember, you cannot sell your product to everyone. If you try to make a product that meets everyone’s needs, that product does not appeal to any particular group of consumers. Also, trying to please everyone will almost certainly cause you to panic and be overwhelmed by all the demands you try to satisfy. Do not fall into that trap.
5. Forecast future market trends
It is also important to keep pace with the latest digital marketing trends. We research what other companies in your business sector do, analyze their strengths and weaknesses, and improve your digital strategy accordingly. Knowledge is power, and you need to know what steps you have to make to grow online.
Now I want to consider five main advantages of the competitive analysis.
>> Here is the link to our Market Research service which includes the competitor analysis 🔗
🏆 Benefits of competitive analysis
1. Create a competitive advantage
The first benefit is clear. Our team investigates the peculiarities of competitors to understand where they underperform and find out how you can use this information in your favor.
People search the answers for issues they have, that is why they are looking for products that give those advantages. You become superior to your competitors when you have a unique selling proposition. Marketers help you to show your clients how your products take care of an issue in a way your competitors cannot.
2. Save budget
Even if you do have sufficient resources, you can waste them on ineffective marketing campaigns. Our team helps you to avoid business risks and save your business investments. The average budget for market research is €1,300–2,500. It depends on your goals and the size of your company.
3. Find your pain points
Competitive analysis can quickly define the state not only of the competitors’ business but yours as well. Our team examines important measures like revenue, expenses, production amounts, employee productivity, and so on. Moreover, our team can detect what you have to improve.
Competitive analysis is a great chance to put yourself in customers’ shoes and look at your business and market from outside. Our team will help you find pain points to stay ahead of the competition.
4. Improve digital marketing strategy
Do not think that it is impossible to promote your products or services on the market full of competitors. First, we analyze the marketing strategy of your competitors and then improve yours.
Do you know where your customers spend most of the time? They check news feeds and update their accounts on different social networks. And if you want to interact with your potential and current customers, you have to set up social media ads. They will help you to reach your target audience and promote your product or service. And it is really easy and fast when professionals promote your brand.
We can also use SEO (Search Engine Optimization) to get more traffic for you and boost your sales. As you know, search engines show users the most relevant results. And it can be hard to reach high positions. But our team can analyze what you have to improve to achieve high ranking.
If you do not know, PPC (pay-per-click) is one more powerful and cost-effective digital marketing strategy. We use this technique to improve your website ranking and lead your website to the top of search results.
Besides, do not forget about email advertising. This technique helps you to remind your customers about your brand and interact with them. You can send buyers newsletters to inform them about discounts or show them products related to their search history.
Video marketing is one more way of brand promotion. It is a wise decision to use original videos to connect with your customers to introduce new products or services, share useful tips related to your business niche.
Moreover, you can always use influencer marketing. You have to find popular bloggers and offer them to cooperate with you. As a result, their followers will visit your website or social account to see what you sell and buy something.
5. Get the list of useful marketing tools
And the last benefit is extremely important for every online business. These tools can give you vital information about your brand, market, customers, and competitors. Consequently, it will be easier for you to make business decisions.
Our team prepares a list of tools for your company, describes its main features and shows pricing. The mission of our agency is helping brands to perform superb target marketing on the Internet.
And we move on to the work process of our firm. I want to tell you what we usually offer to our clients.
>> Here is the link to our Market Research service which includes the competitor analysis 🔗
🖤 What do you get after hiring our firm
1. List of competitors
The first step is the investigation of the competitors. We usually analyze 7–14 competitors. It is a mix of competitors that sell analogous products, have a similar business idea, have a similar and slightly different target audience.
We learn details about your competitors via the internal and external analysis, SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, and use all available documentation during all stages of the competitive analysis.
In the end, you get a full insight into the competitor’s businesses.
2. Analysis of their business conditions
Marketers also pay attention to how your competitors run marketing campaigns and launch new products or services. You can save your time and money, determining what not to do, and avoiding these mistakes.
It is a good strategy to set up Google Alert to receive news and information about your competitors. You can also search for online articles to learn about their growth, strategies, and plans for the future.
3. Full information about their product basket
The product basket is all products or services that your competitor offers to the customers. But we aim to look at the customer journey funnel and determine what they buy with what. This can help you to understand the business of your competitors from inside. Then, we can use this information to improve your digital marketing strategy.
4. Review of their pricing strategy
Next, you get a clear perception of the pricing strategy of your competitors. It starts with an understanding of the market price of the products of your competitors. Properly pricing strategy is a key to your business’ success.
We analyze the price index for products or services within a specified time. It shows how market dynamics affect sales and provides information about competitors’ prices.
You should know that a third of consumers try to find a lower price before buying the product. This means that it is important to have information about the discounts and sales of the competitors to know how to boost your sales.
5. Reasons why customers choose your competitors
I am sure that you want to know why customers choose your competitors. We can do benchmarking research to find an answer to this question. It is a full marketing analysis and research of your competitors.
The aim of this service is the analysis of the buyer’s journey, comparison of your performance with competitors’, finding the ways to become more competitive. The most popular method of this research, which we use, is a secret buyer.
We can discover what features appeal to the customers, what strategies the competitors use, and how to attract their clients to buy from you. Social media platforms have made it easier to contact your competitors’ customers and ask what they like and do not like. You can also see what the customers are saying about them online.
6. Investigation of their strong and weak sides
Do you want to determine the strategies and identify the most vulnerable parts of your competitors? You have to analyze their strong and weak sides. For this, we study the existence or lack of key skills and knowledge needed to compete in the market.
The presence of these key skills and knowledge usually determines the success of a business. Therefore, we can analyze the business strategies of your competitors. Our team also analyzes the experience of failed businesses and the reasons behind their failure. Thus, marketers can get an idea about the key skills and knowledge you need to be successful in your business sector.
7. Study of their web traffic and its sources
We analyze the SEO structure to determine the web traffic of your competitors. The professionals look for keywords in the title of a page, the URL address, the structure of content, internal links. The advantage of this service is that marketers can also create a list of keywords that you can start to use for your content.
One more step is the investigation of the information about the traffic sources of your competitors. We can give you a report about traffic sources and channels of your competitors. You will get information about the traffic generation of your competitors, keyword analysis, and everything you need to make better decisions.
The report also includes information about the total visits of the website, time on site, views of the page, bounce rate.
We never forget to analyze the channels of your competitors. We have to study Instagram or Twitter if your competitors are active on these channels. You do not necessarily have to set up social media advertisements there, but you have to know how they work for your competitors.
8. List of their tools
I told you earlier that it is important to use marketing tools. Our team can even determine the tools of your competitors. We analyze websites, social media profiles, online reviews, and information aggregators to discover what they use for what. It will help you to strengthen your marketing strategy and use some of these tools for your needs.
As you see, competitors are an important part of your business. You should know everything possible about them. And a competitive analysis allows you to spy on them legally.
Moreover, our team is happy to be at your disposal. Contact Adloonix to get the information about the terms of our cooperation. Or you can hire us immediately!
Best Regards,
The marketing architect and founder of Adloonix
Vlad Sapozhnykov 🔗,
E-mail: founder@adloonix
How often do you conduct competitive analysis? What methods and techniques do you use? Please, share your opinion with us.
