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To quote the most inspirational song to come out of the 80s, it’s time to “Rise up to the challenge of our rivals”. We can’t do this without competitive research. The world doesn’t operate within a silo and neither should you, so your decisions should be advised by what your competitors are doing in the market. This article will dive through the basics of competitive research and help equip you with the insights needed to navigate the market landscape and make informed decisions for your venture.
Why is Competitive Research so Important?
Create Understanding the Market: Competitive analysis doesn’t just provide insights into your competitors but it can also create an understanding of the market as a whole. Oftentimes, intelligent companies position their messaging to respond to market demands. So, if all of your competitors are sharing a specific message within their marketing, that can create insights into what your customers are looking for.
Finding Advantages: Comparing your competitor's product or solution to your own is a great way to advise your message. Where are they weak compared to where you are strong? These key differentiators will be the cornerstone of your marketing message.
Identifying Opportunities to Emulate: Successful competitors often lead the way with innovative approaches. By learning from their strategies, you can refine your tactics and stay ahead of the curve. Don’t be afraid to leverage the work and experiences of the ones that have come before you. This is a key drawback for first movers and a key potential strategy for you- everyone else gets to emulate and improve on their innovations.
Components of Competitive Research
Identifying Competitor Strengths: The first (and the least fun) aspect of competitive research is to admit what your competitors are good at. This can be absolutely any aspect of the business that might make them successful in the eyes of their customer. Do they have strong customer service? Are they cheaper? Is an aspect of their product better in any way? Look for any reason why a consumer may choose your competitor over you, and write it down. This will help you understand areas you may need to improve upon in the future.
Identifying Competitor Weaknesses: Similarly to Strengths, this is where you get to identify where your competitors have gaps in the eyes of the consumer. Does delivery or implementation take a long time? Does their product break down after awhile? Whatever it is, take the time to identify all possible negative aspects of their service or offering. (pro tip: often times what a competitor website DOESN’T say speaks volumes about what they can’t achieve)
Relating Them to Your Business (Key Differentiators): Now let's put those findings from the Strengths and Weaknesses section into context. Are your strengths their weaknesses? If so, we’ve just identified some very valuable messaging for your marketing strategy.
Competitive Research Best Practices
Review 3rd Party Resources Such as Review Sites: In addition to researching a competitor's website or product, identifying 3rd party review sites can be a very helpful way to get customer insights into their product or solution. It’s important to read every review however, oftentimes consumers may provide feedback that isn’t indicative of the majority of their customer’s experience. Read all the reviews from the 1-star to 5-star reviews, remove any reviews that seem contradictory or are outliers, and look for patterns in the positive or negative feedback.
Test the Competitor's Product if Possible: The fastest way to get insights on a competitor is to go straight to the source. If possible, look to buy their product or sample their service. Be as unbiased during the process, and identify what you liked about it and what you disliked.
Keyword Analysis (Expert Mode): We live in a digital world and so do your competitors. Analyzing keywords with tools such as SEMRush.com will help you understand the following things:
These insights can help advise your advertising strategy. Very recently, I helped a company create its keyword strategy by utilizing the keywords of one of its very closely related competitors. This acted as a starting foundation for what is now a thriving digital program.
Conclusion
Competitive research isn't just about keeping an eye on the competition; it's about equipping yourself with the knowledge and insights needed to thrive in your industry. By understanding the market, leveraging competitor insights, and adopting best practices, you can chart a course toward sustained growth and success for your venture.
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