Competitor analysis is a vital aspect of marketing that helps you understand the ins and outs of how you stack up against the competition. By conducting one, you’ll understand your marketplace better, how to stand out in your industry, and the insight you need to get a step ahead. Wondering where to start? You’re in the right place.
- Determine who your competitors are and identify the similarities.
Even if they don’t offer an identical product or service, having a thorough understanding of every company in the arena is crucial. Clearly determining their strengths and weaknesses sets you up for success during the rest of your competitor analysis.
- Research their products and sales tactics.
What channels do they use? What are their most popular products? How often do they offer special deals? Ensuring your pricing is competitive and audiences are seeing you in the same place can set you apart. You can also identify gaps in their marketing mix with a competitor analysis – maybe they don’t advertise on a certain platform or are missing a certain market.
- Analyze how they reach their audience and glean engagement.
What is their average number of comments, shares, and likes? How many views do videos get? Do they use certain hashtags? You can use their content as a starting point when conducting your competitor analysis to see what works and what doesn’t. Consider the platforms they use, and find opportunities to promote content that amps up your brand and stands out.
- Perform a SWOT analysis to thoroughly evaluate their strengths, weaknesses, opportunities, and threats.
What are they doing well and where is there room for improvement? What’s the biggest challenge they’re facing? Perhaps you’ll find areas where your brand thrives and competitors fall short.
- Spot industry trends.
Be prepared to zig when everyone else zags. Are your competitors staying up to date with industry trends? Or do you have the opportunity to get a few steps ahead? Trends are always changing, and leading the pack gives you a competitive edge that can’t be underestimated.
Competitor analysis can seem daunting at first, but the payoff is worth it. You’ll be more competitive than ever and positioned to better serve your target market.