Keeping a close eye on what your competition is doing might seem devious or snake-like, but it’s an essential measure if you’re to keep the metaphorical head of your business above water.
Ignorance is far from bliss in the cutthroat corporate sphere. And while you may not be actively observing them, there’s a good chance that your rivals are closely monitoring you. Doubly so if they perceive you as a threat.
In this article, we’ll begin with the basic concept behind competitor analysis before introducing one of the most effective ways to collect data about your competitors. Once that’s covered, we’ll explore some clever ways you can use it to gain the upper hand over them. Ready to learn how? Let’s dive in!
5 Crucial Steps To An Effective Competitor Analysis
1. Know your enemy
The success of your business hinges on its ability to attract and entice customers. This is why it’s so crucial that you have a clear idea of who you’re trying to sell to. However, we’d argue that it’s equally important to understand who your competitors are trying to sell to.
Are you in direct competition with them, targeting the same customer base, or do you have overlapping segments? Knowing your competitors’ target markets is a key aspect of competitive analysis that can give you a competitive advantage.
Understanding their target markets helps you differentiate your business and develop effective strategies to attract and retain customers. By identifying areas of overlap or direct competition, you can refine your own target market and positioning to stand out from the crowd.
This knowledge allows you to tailor your marketing messages, product offerings, and customer experience to cater to the specific needs and preferences of your target audience, providing them with a compelling reason to choose your business over your competitors.
2. Collect valuable data
One of the most basic forms of competitor analysis is to simply visit your rival’s website and take some notes — how many products do they stock? Are their customers leaving positive reviews? Are their prices better than yours? It’s a simple strategy for sure, but it’s also incredibly time-consuming, and at the end of the day, you’ve got a business to run. All that time spent poring through the competition’s websites could be spent improving your own.
Thankfully, there’s a workaround. Web scraping is a technique that allows you to automate the process of gathering data from websites, saving you valuable time and effort. Instead of manually visiting each competitor’s website and taking notes, web scraping enables you to extract the desired information in a more efficient and systematic manner.
Want to know how many products a competitor stocks? A web scraper can retrieve that information in a matter of seconds. Curious about customer reviews? Your web scraper can collect feedback, allowing you to analyze sentiment and identify areas of strength or weakness for your competitors. Concerned about their pricing? Web scraping can help you monitor and compare prices, giving you insights into how your competitors’ pricing strategies stack up against yours. Pretty neat, right?
Web scraping is often confused with web crawling, but while there are similarities between these two practices, they’re quite distinct from one another — check out ScrapingBee’s guide to scraping vs crawling for an ideal primer on the topic. Once you know your stuff, start searching the web for the best web scraping tools — there are plenty to choose from!
3. Exploit your rival’s weaknesses
So, you’ve gathered your data — now it’s time to use it. One of your first steps should be to check out what your competitor’s customers are saying. Specifically, analyze customer reviews and feedback to identify any weaknesses or pain points that their customers have experienced. By leveraging this information, you can tailor your own products, services, or customer support to address those shortcomings and provide a superior experience.
Understanding and exploiting your rival’s weaknesses allows you to position your business as a better alternative and attract dissatisfied customers to your own offerings. Are their customers dissatisfied with shipping delays? Frustrated with poor customer service? Disappointed by poor product availability? Hone in on these aspects and focus on making your business a superior alternative.
4. Figure out who to target
Once you’ve identified your competitor’s weaknesses, it’s crucial to determine the right audience to target. Analyze the demographics and preferences of your competitor’s customer base to identify potential segments that are dissatisfied or underserved. For instance, if your competitor is known for targeting a specific age group, you can tailor your marketing efforts towards a different age group that they may have overlooked.
Segment your audience based on their needs and preferences. Are there customers who value fast shipping, personalized service, or environmentally friendly products? By understanding these specific preferences, you can develop targeted marketing campaigns that highlight how your business addresses those needs and provides a superior solution.
5. Use your marketing channels wisely
Now that you know who to target, it’s time to utilize your online marketing channels wisely. Focus on channels where your competitors may be less active or less effective. For example, if your rivals heavily rely on social media, explore other channels such as email marketing, content marketing, or partnerships with influencers in your industry.
Craft compelling messaging that highlights the weaknesses of your competitors and showcases how your business excels in those areas. Emphasize the unique value proposition and advantages your offerings have over your competitors. By positioning yourself as the solution to the frustrations and limitations your competitors’ customers may have experienced, you can attract their attention and win them over to your business.
Of course, how you decide to market your brand is up to you. You could always take the high road and not mention your competitors’ shortcomings, but poking fun at them might prove especially effective. And hey — if it’s good enough for brands like Samsung and Budweiser, it could work for you! Don’t be afraid to get experimental with your advertising tactics.
Conclusion
Remember, competitive analysis is an ongoing process, and understanding your competitors’ target markets should be an integral part of your business strategy. By knowing your enemy, you can make strategic decisions that give you a competitive edge and maximize your business’s success in the marketplace.
Want to step your company up some more? Get full-service marketing assistance from ReVerb! We’ll start with a thorough marketing audit of your business, including a competitive analysis, to create a winning branding and promotional strategy to skyrocket your results!
