Knowing your competitors can be as crucial to your success as knowing your own business. In an age of social media, worldwide shipping, and video calling, your competitor can be in another state or across the street. Even if you’ve been in business for years, it may be time to refresh your intel on your competitors’ online activity. Consider a competitor analysis as part of your digital strategic planning.
Understanding your competitors is akin to navigating a bustling marketplace. A comprehensive analysis is your compass. It guides you toward informed decisions and strategic moves. Let’s explore how to break down your competitors’ digital presence. Uncover their strengths and weaknesses, and chart a course for your own success.
What We'll Cover
Understanding Competitor Analysis
Competitor analysis is the systematic evaluation of the strengths and weaknesses of current and potential competitors. In the digital realm, this involves scrutinizing competitors’ online presence, including their websites, social media profiles, content marketing efforts, search engine optimization (SEO) strategies, digital advertising campaigns, and overall digital footprint.
Identify Your Competitors
Start by identifying your direct and indirect competitors. Direct competitors operate in the same niche, area, or industry, while indirect competitors may offer similar solutions or cater to overlapping audiences. Consider both when conducting your analysis.
You probably have a list started already. If you cater to local clients, query google maps for similar firms. You can also check out your local chamber of commerce to see if any competitors are members. If possible, also ask your customers for insight. Check social media for the kinds of products or services you offer and see who pops up.
Once you have your list of competitors, try one or more of the below approaches to see how they are doing what they do. Then, assess how you can innovate on their strategy to elevate your own.
The 4 Ps of Marketing
Remember the classic marketing mix? Apply it to your competitor analysis. After all, you’re both working to appeal to potential customers.
- Product: Evaluate their offerings. What unique features do they emphasize? How do they position themselves in the market?
- Price: Study their pricing strategies. Are they premium, budget-friendly, or somewhere in between?
- Place (Distribution): Explore their distribution channels. Where do they sell their products or services?
- Promotion: Analyze their marketing campaigns. What channels do they use? How do they engage their audience?
Digital Platforms and Presence
Nowadays, having some kind of presence online is a must. Dig into their digital landscape.
Websites: Visit their websites. Assess content quality, user experience (UX), and lead generation strategies. Pay attention to elements such as navigation ease, load times, mobile responsiveness, and call-to-action placements. Note the features that engage visitors and contribute to conversions.
Social Media: Examine their social profiles. Which platforms do they dominate? How do they engage followers? Analyze their posting frequency, content types, engagement levels, and audience demographics. Identify which platforms they are most active on and how they interact with their followers. This will help you understand their social media marketing tactics and identify opportunities for improvement.
SEO: Investigate their search engine optimization (SEO) efforts. What keywords do they target? How visible are they in search results? Utilize SEO tools to assess your competitors’ organic search performance. Identify the keywords they are targeting, their backlink profiles, and the quality of their content. Next, evaluate their on-page SEO strategies, including meta tags, headers, and content optimization. Most of this you can find by using inspect element in your browser. This will provide insights into their visibility in search engine results pages (SERPs).
Traffic Acquisition Strategies
People do not magically land on a company’s website. They’re looking for a solution to a problem, and the manner in which your competitor gets their attention is traffic acquisition. So, how do they attract visitors? Look at:
- Organic Traffic: Analyze their SEO performance.
- Paid Advertising: Check if they run Google Ads, Facebook ads, or other paid campaigns.
- Referral Traffic: Identify sources linking to their site.
Content and Messaging
Evaluate the type and quality of content your competitors are producing. Look at their blog posts, videos, infographics, and other digital assets. Assess the topics they cover, the depth of their content, and how they position themselves as industry leaders. Then, identify content gaps and areas where you can provide unique value to your audience.
- Blog Posts: What topics do they cover? How frequently do they publish?
- Email Marketing: Sign up for their newsletters. Study their email content and frequency.
- Branding and Tone: Understand their brand voice and messaging.
Strengths and Weaknesses
Identify areas where they excel and where they struggle. Learn from both – you may find some of your findings apply to you too. Build on your strengths and compensate for your weaknesses.
- Strengths: What sets them apart? Is it customer service, innovation, or brand loyalty?
- Weaknesses: Where do they falter? Is it slow website speed, outdated content, or poor mobile optimization?
Benchmarking and Self-Assessment
Finally, you can say you have a decent picture of your competitors. Now, it’s time to turn the spotlight on your own business.
SWOT Analysis
For an even more comprehensive assessment, consider a SWOT analysis. It takes into consideration strengths and weaknesses (intrinsic qualities) but also opportunities and threats (extrinsic qualities). We conducted SWOT analyses on our local regions of Bucks County and the Lehigh Valley.
Gap Analysis
Compare your performance metrics (website traffic, conversion rates, etc.) with theirs. Several tools exist today, notably Semrush, that allow you to get a rough estimate.
Identify Unique Selling Proposition (USP)
Determine what sets your business apart from competitors. Assess your unique value proposition, brand identity, and core strengths. Focus on leveraging your USP to differentiate yourself in the market and attract your target audience.
Evaluate Customer Feedback
Gather feedback from your customers through surveys, reviews, and social media interactions. Understand their pain points, preferences, and expectations. Use this insight to refine your products, services, and customer experience.
Assess Digital Performance
Review your own digital presence across various channels. Start with your web analytics to get a baseline. Then, evaluate your website, social media profiles, content strategy, and online advertising campaigns. Finally, identify areas of improvement and optimization to enhance your digital performance.
Learn, Adapt, and Innovate
Stay agile and responsive to market changes and emerging trends. Continuously innovate your digital strategy based on customer feedback, competitor insights, and industry developments. Experiment with new technologies, channels, and tactics to stay ahead of the competition. Finally, use your findings to:
- Emulate: Borrow successful strategies (with your unique twist).
- Differentiate: Identify gaps and areas for improvement.
- Innovate: Stay ahead by experimenting with new approaches.
Using what you learned
Competitor analysis is a fundamental component of digital strategy that empowers businesses to gain a competitive edge in the online marketplace. By understanding the tactics and strategies employed by competitors, you can identify opportunities for improvement. Take the lessons learned here to refine your own digital approach, and differentiate yourself in the market.
Of course, let us know how we can help!
Through a combination of competitor analysis, self-assessment, and strategic differentiation, you can grow your business with confidence and clarity. Remember, competitor analysis isn’t about imitation—it’s about informed decision-making.
