Best 6 Steps to Conduct a Competitive Analysis

Competitive analysis can help you identify the strengths and weaknesses of your competition. Understanding how similar businesses operate will help you determine how open the market is for your business. This is an essential part of the startup process.

Identify your competitors

The first step to conducting a competitive analysis involves identifying your competitors. There are two types: indirect and direct competitors. You can make this all process super fast by getting the services of a Digital Specialist.

Your company may be directly competing with a direct competitor who offers the same product/service and targets the same customers as you. Indirect competitors sell similar products but target a different customer segment.

This gives you a new perspective on your customers and business. Search on the internet to find these companies. To better understand your competition, find as many of their direct and indirect rivals as possible.

Online presence

After you have identified and organized your competitors’ websites, assess their online presence. Examine how functional their websites are and how easy it is for customers to shop from them. Also, evaluate how frequently they interact with their audience.

Most companies currently have great digital marketing or e-commerce strategies. It is possible to be different from the rest by having a well-designed and user-friendly website. 

 Online reviews

To read reviews about your competitors’ services, visit sites such as Yelp, Facebook, and Google. Analyze how they handle negative comments and inquiries from customers if they have Instagram or Twitter accounts.

Online reviews can give you insight into how customers feel about a business.

You can learn more about your competitors’ mistakes and what you can do to avoid them. You can read the positive reviews to see what makes them stand out, and how you can improve your customer service.

Talk to customers of your competitors

Take note of people you want to know more about as you peruse reviews and comments on the internet. Reach out to them. You can talk to them and find out who they are, their needs, and what made them unhappy with your competitor.

You’re not only learning about customer experience but also providing direct attention to them that could lead you to future business.

It’s like a relationship. If something is missing from your relationship with your competitor let them know. Thank them for taking the time to speak with you and offer better customer service via your business.

Identify strengths, and weaknesses

Once you have completed your research, put it all together and evaluate the strengths and weaknesses of your competitors.

This information can be used to improve your business and pinpoint areas where you could capitalize. Keep this information handy to review and compare when you do future competitive analyses.

Research tools are necessary to conduct competitive analysis.

A competitive analysis is crucial to your business’ growth. It can be tedious and time-consuming, particularly if you are looking at multiple competitors. Many online tools can make this process much easier and more efficient.

These tools will help you track competitors and analyze your results. SEMrush and BuzzSumo are some of the most popular tools. Research software can help you save time and inform you about the best results for your business.

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