Competitive analysis is one of the most important tasks that an entrepreneur can perform.
There is a reason why every successful company invests a lot of time (and sometimes money) in the process and why most new companies start their journey by reducing their competitors. But this is something you need to do, no matter where you are in your life cycle.
This is because the competitive analysis is like a multipurpose tool for your business. This not only gives you an idea of the competitors you’re dealing with but also shows how your company can do more. When we look outside, we understand better what to do inside of us. If you are looking for the successes and failures of your competitors, you can plan for a long time.
And that is exactly what entrepreneurs want: to understand how to proceed in their sector. How to stand out and become the biggest fish in the pond.
Therefore, your company must invest time and money in competitive analysis. Increased sales and success can make all the difference.
What guarantees a good competitive analysis
Many people think that the question for measuring the effectiveness of competitive analysis is: “Do I understand my competitors better?” The question they really need to ask themselves is, “Do I understand my competitors better?”
Because if you are going to invest time and effort, you can also do your best.
Stephanie Nivinskus, CEO of SizzleForce Marketing, shared her competitive analysis strategy during the DigitalMarketer Certified Partner Training Day and Stephanie helped many clients to carry out advanced competitive analysis that helped them gain a competitive advantage.
Any level of competitive analysis will be useful. But when the most successful companies perform competitive analysis, they go all-in. They see competition from all angles and try to put themselves in the shoes of competitors.
Therefore, if there is a general rule for fair and effective competition analysis, it is creative. Those who think outside the box cannot simply effectively examine their competitors; they can also offer the solutions that set them apart.
But if you want to be a little more specific, here are some of the best practices that can help you change your competitive analysis from good to good.
Why is it important to measure competition (continued)?
If you are just starting your own business, you know that you want to do everything in your power to make it competitive. If you were successful, you probably did well the first time.
But if you are just starting out or have been serving people for years, it never hurts to know what it is all about. Your competitor analysis is likely to improve.
Do you think Starbucks has reached the peak of the coffee industry and has completely forgotten about its competitors? Do you think McDonald’s can’t keep up with what Burger King and Wendy are doing? It is no accident that these companies are the best in their industry – they are always looking for improvements.
And it is impossible to stop investing in resources to find out what you are dealing with.
1. Do it in a few days
Competitive analysis is not that difficult – you just need to look at the differences between you and your competitors.
But it takes time and the part cannot be taken for granted. In fact, it is arguably the most common mistake that business owners make when it comes to competitive analysis.
A truly effective competitor analysis cannot be done in the course of a day. You (or your team) cannot complete a survey within 24 hours to get a complete picture of the match. To develop the concept, it takes time to complete the process correctly.
After doing the research, it is still necessary to analyze and organize the analyzed results. Next, you need to compare the information and compare what you are doing.
It is a multi-step process and should not be rushed. So take the time to understand what the prospects are for your industry when it comes time to work with your team. If you spend an entire week in the process, you will probably be much happier with the results than trying to run.
2. Identify the differentiators, not expectations
This is a common problem, especially with small and new businesses. When they try to identify the differences between them and their main competitors, they say that one thing that sets them apart is that “we really care” or “we are more personal”.
And while these things may be true, new and potential customers will not care.
The distinguishing factors are clear or tangible. These are things that make you unique, but also things that your customer can say almost immediately. Excellent service and personality is an expectation, not something that sets you apart from the competition.
As you become known, people start to like and appreciate your personality traits.
Chick-Fil-A question: friendship with the employee is the foundation of the business.
This does not mean that there are some differences that may not be immediately visible, but that may still be effective if marketed correctly. If you are a coffee shop, you can offer a variety of organic options, or your coffee comes from a responsible source. These are potential differences that can really set you apart from the competition. It is up to you to let them know.
Furthermore, their differences should be relatively clear. It is based on the product or service you offer and the price.
These expectations you set for you and your business are high and can ultimately increase customer loyalty. But they will not be able to know without going through the door, so you can not count on them being noticed.
3.Think beyond the price points
The key to effective competition analysis is to think of all the ways you can gain an edge over the competition. This means that the right questions are the key to effective competition analysis.
And yes, these questions often go beyond the price.
Price is perhaps the most important factor for most consumers, but there are many other things that can help you stand out and make people choose.
It can be things like diversity. Whether you are a woman or a minority business, it is important to be aware of this (and to know that it can help you qualify for programs or scholarships).
You can also find an edge in your marketing strategy. You can discover unique strategies that you can differentiate by analyzing your competitors’ content marketing efforts. Or maybe you have developed an excellent rewards system that rewards loyal customers who buy from you. These are things that set you apart from your competitors, especially if they are bigger than you.
There are many other things to discover. What niche do you fill? Is your client’s avatar different from your competitors? What is the history of your business and how can you use it? All of these questions are valid questions that can help you find ways to stand out and questions that people do not always think about unless they make the effort.
Every aspect of your business is important. Do not forget to announce them if you think it will give you an edge.