You can either build your own competitor analysis or use a competitive analysis template. It is important to analyze your competition at various stages of your business to ensure that you are providing the best possible product or service at the right price for your customers. Learn more about what a competitor analysis is, why conducting this analysis routinely can help your business achieve success, and the seven-step process for conducting one. We’ve broken the process of conducting a competitive analysis on social media into four steps that will work for any brand. Possessing a thorough knowledge of your competition is the key to staying ahead of your competitors, and a competitive analysis is exactly how you’ll manage and maintain your competitive position. You and your competitors are competing for the attention of potential customers. That’s why it’s useful to know how your competitors use social media channels and paid acquisition channels to reach their target audience.
A competitive analysis is a way to identify competitors, and understand competitor’s strengths and weaknesses in relation to yours. It helps you gauge how to curb competitors and refine your strategy. It’s quite likely that no prospect or customer reads your press releases as carefully as your competitors do.
You’ll walk away with unstructured data as well as word clouds to let you see quickly how the first impression of your site lines up with the competition. This is the easiest part of the equation because you should know your industry like the back of your hand. Still, you should still conduct this step to see if there are any new players or if anything has changed with the old ones. Another way to compare SEO effectiveness is by using a formula to estimate the volume of traffic from search for each competitor. To do this, take monthly unique visitors and multiply it by the percentage of traffic from search. You can use the Site Overview Tool to find the metrics for this calculation. Share of voice refers to the percentage of search traffic that the site receives for the search term.
You can set up a much more balanced view if you look at both market leaders , as well as smaller, often more agile and younger companies. Alternatives can satisfy similar or related customer needs with completely different functionality. It’s essential to understand these so you know what you’re up against and can position accordingly. For example, an alternative to Uber is a taking a walk or taking a taxi or riding a bike.
done with a SWOT analysis), but to help you start thinking as a dynamic business owner. Once you’ve identified your competitors, you’ll want to analyze their websites. As you find competitors, you’ll want to categorize them into various levels, from primary competitors to those you still need to keep on your radar — like secondary and tertiary competitors. Start with a simple search for your business name, product ideas and overarching business idea. Whether you want to admit it or not, your competitors are out there and they’re likely just as hungry as you are. This chapter details a simple, easy-to-use process to help you complete a competitor analysis that discovers and keep tabs on other retailers in your space. To make sure you set your online business up for success, you’ll need to do a deep dive on the current competitive landscape.
With the same critical eye you used to gauge your competition’s content marketing strategy, take a fine-toothed comb to analyze their social media strategy. When you have a solid understanding of your competitor’s content marketing strategy, it’s time to find out if it’s truly working for them. If most of your competitors’ offer free shipping, you’ll want to look into the option for your own company.
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Once you conduct a competitor analysis, you can use it for benchmarking and measuring future growth. Routine analyses will reveal market trends to keep track of and new players to be aware of. It will also help reveal who your current competitors are throughout every stage of business. A competitor analysis is important for both offense and defense.
You’ll want to analyze your competitor’s complete product line and the quality of the products or services they’re offering. On the flip side, an indirect competitor is one that provides products that are not the same but could satisfy the same customer need or solve the same problem. Direct competitors are businesses that offer a product or service that could pass as a similar substitute for yours, and that operate in your same geographic area.
5 Content Marketing
Organize all your marketing in one place with marketing calendar software from CoSchedule. There will be some competitors who have formidable strengths which are, or could be, a threat to your firm. Consider what, if any, your response will be to current or potential threats. In some cases, you may be able to easily counter a threat, such as optimizing for a critical key phrase or taking over top position for a paid keyword. In other cases, you may concede a strength to your competitor and focus on your strengths. Every threat does not warrant a response, but you should be aware of as many threats as possible.
- Weaknesses should be considered in the context of the market where you compete.
- Plan and organize your marketing strategy with CoSchedule’s Marketing Calendar.
- You’ll have a lot of data and it’ll be hard for an outsider to understand.
- pricing strategy is going to be one of the most important aspects of your online business — and potentially a competitive advantage.
- Remember that you can add as many sections as you want to your analysis, but be sure to keep your list of competitors limited to under 10 to ensure your research is focused and highly relevant.
- done with a SWOT analysis), but to help you start thinking as a dynamic business owner.
Research all competitors in person and online (to get a sense of their online presence – or as the sole research method if the product or service is only sold online). Use a group, if possible, to get a variety of opinions on competitor products or services. When you are writing a competitor analysis, it is important to be as objective and honest as possible. Rovner recommends including information in your competitive analysis about related trends in your market and region.
At the moment Svitlana is taking clients’ revenues to new levels as part of CRO Team at 3Q Digital. On a personal note, Svitlana loves Latin Dance and foreign languages. You could score your competitors on a scale from “Rookies” to “MVPs.” Rookies have no analytics or experimentation tools on the site. MVPs have a full suite of analytics, UX tools, and A/B-testing solutions. We want to “steal” ideas from competent competitors who aren’t making the same mistakes that everyone else is, namely, designing without data.
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It’s best to include at least one competitor from each category into your analysis to make it truly comprehensive. Which brings us to why competitor analysis is worth doing in the first place. It’s particularly hard (and confusing and incredibly time-consuming) if you’re relatively new in business. Even if you manage to dig something up, you always seem to be left with more questions than answers.
Indicate with a check mark which of your competitors has which features and benefits. Features are fairly straightforward, either a product has it or it doesn’t.
A competitive analysis will allow you to think up effective strategies to battle your competition and establish yourself in your target market. Meaning you must audit any product or service that currently solves the problem your business is trying to solve for customers and write a quick profile for each competitor. At the same time, knowledge is power—simply knowing how you compare to your competitors in the minds of customers can make a world of difference. For SEO, I look at my competitors’ keywords and their page rank/authority. This tells me if it’s even realistic to try to rank or bid on a keyword, or whether I need to niche more.
By now you’ve got a huge list of potential competitors — far more than you could reasonably include in a thorough competitive analysis. It’s time to narrow down your list to the top three to five brands who you are most closely competing with on social media. Choose the brands that have the closest fit to your target niche. The primary goal of a competitive analysis is to understand the marketplace and how you can differentiate from other players.
Now that you’ve gathered all that data, it’s time to analyze it in a way that helps you understand where you stand compared to the competition. As part of this analysis, you’ll also look for potential ways to improve your strategy, and potential hazards to watch out for along the way. Facebook Audience Insights and Twitter Analytics can give you some good insights into which other brands your audience follows on these social networks. If these brands are similar to yours, it’s worth considering them as potential competitors. Again, you’ll get a list of related keywords with data on search volume and competition.
Linkedin is usually the best source to find an active employee count. Some companies solve the same problem for the same customer but using a different solution.
They would have a clear picture of how they stack up against their competitors and have all the information they need to decide what changes need to be made to optimize their business. Even though Isle Surf and SUP is a much smaller retailer, they are selling the same product – paddleboards – as Walmart, REI, and DICKs. So Isle Surf and SUP should also include them in their competitor analysis. Once you’re done, you will have a clear picture of how you stack up against your competitors, and have all the information you need to decide what changes need to be made to optimize your business. The best way to do this is by performing a SWOT analysis for each competitor, which helps you identify your own strengths and weaknesses, and in turn, identify your future opportunities and threats .
Covering everything from market forecasts to consumer profiles, it can help you get clients and decision-makers on board. This overview will help your readers get a big-picture view of the market landscape. A strong report shows exactly what a company must out-compete to be successful. And if you don’t know what that competition is up to, you could be missing out on huge opportunities. I’m a former champion of optimization and experimentation turned business builder.