Competitor analysis is one of the most important aspects of any business. By understanding what your competitors are doing, you can stay ahead of the curve and make sure that your business is the best it can be.
There are a few different ways to approach competitor analysis. In this guide, we’ll cover the 8 most common methods so that you can get started right away.
1) Primary and Secondary Research:
One of the first things you need to do when conducting a competitor analysis is to gather data. This data can come from a variety of sources, both primary and secondary.
Primary research is data that you collect yourself through surveys, interviews, or focus groups. This type of data is usually more reliable than secondary data, but it can be more expensive and time-consuming to collect.
Secondary data is information that already exists, such as data from the government or trade associations. This type of data is usually less reliable than primary data, but it can be easier and cheaper to obtain.
2) Know Your Competitors:
Before you can start analyzing your competitors, you need to know who they are. Make a list of all the businesses that offer products or services similar to yours. Once you have your list, do some research on each company?
Find out how long they’ve been in business, what their core offerings are, and who their target market is. This information will help you to better understand your competitors and what they’re doing right (and wrong).
3) Analyze Their Website:
One of the best ways to understand your competitors is to take a look at their websites. Pay attention to both the design and the content.
First, look at the design. Is it user-friendly? Does it look professional? Is it easy to navigate? If not, then this is an area where you can improve upon.
Next, analyze the content. What kind of information are they providing? Is it helpful and informative? Are they using keywords effectively? If not, then this is another area where you can make some changes.
4) Check Out Their Social Media:
In today’s world, social media is one of the most important tools for marketing. Make sure to take a look at all of your competitor’s social media accounts.
See what kind of content they’re posting and how often they’re doing it. Pay attention to the engagement level (likes, comments, shares, etc.). If you see that they’re getting a lot of engagement, then this is something you should definitely be doing as well.
5) See What People Are Saying About Them:
One way to get insights into your competitor’s business is to see what people are saying about them online. You can do this by searching for reviews on sites like Google, Yelp, and Facebook.
You can also search for forum posts and blog articles. This will give you a good idea of what people like and don’t like about your competitor’s business.
6) Identify Their Strengths and Weaknesses:
Once you’ve gathered all of this information, it’s time to start analyzing it. One way to do this is to identify your competitor’s strengths and weaknesses.
This will help you to see where they’re doing well and where there’s room for improvement. You can then use this information to make changes in your own business.
7) Compare Prices:
One of the most important aspects of any business is pricing. Make sure to take a look at your competitor’s prices and compare them to your own.
You may find that you need to adjust your prices in order to stay competitive. Or, you may find that your prices are already very competitive. Either way, this is an important piece of information to have.
8) Analyze Their Advertising:
Another important aspect of any business is advertising. Take a look at where and how your competitors advertise their business.
Are they using traditional methods like print or television ads? Or, are they using more modern methods like social media or search engine marketing?
Competitor analysis is a vital part of any business. By taking the time to understand your competitors, you can make changes in your own business that will help you to better compete.