3 Ways Competitor Insights Can Drive Your Business Forward
Market research is critical whether you’re starting a new business or trying to improve one you’ve owned for years. It can help you identify things your competitors currently do better than you so you can rethink and reposition your strategy. It can also help you discover gaps in the market so you can fill in those gaps and stand out. When gaining industry insights, it’s recommended that you focus on your direct competition first.
Direct competitors provide the same type of service or products as you. For example, if you’re a plumber, you should include all other plumbers in your area. Indirect competitors fill the same general customer need as you, but in a different way. For example, if you own a gym, you might include personal trainers and home workout equipment manufacturers in your comparison.
3 Ways Competitor Insights Can Drive Your Business Forward
Here are three key ways you can drive your business forward by gaining insights into the practices of other leaders in your industry.
1. Perfect Your Content Strategy
If there’s one industry that’s constantly evolving and adjusting to meet the needs of consumers, it’s the digital marketing industry. Search engine algorithm changes can influence how you format your content and keywords. Additionally, rapidly improving artificial intelligence technologies are disrupting the industry and forcing adaptation. Ensure you stay ahead by perfecting your marketing techniques and regularly releasing quality content.
Many business owners focus so much on day-to-day operations that they forget their long-term content approach. However, the quality of your content strategy can make or break your business. A well-crafted strategy fulfils user needs and aligns with your company’s objectives and values. It also seeks to address customer questions and concerns proactively. You need to know what the competition is doing to achieve these goals better than the company down the street.
A competitive content analysis can help you quickly identify and exploit the weaknesses of other businesses. Once you identify topic gaps they’re not filling, you can step in and fill them. In doing so, you may become the industry authority your audience trusts most. When they see you as a trustworthy source of information, they’ll be more inclined to come to you first. By filling current topic gaps, you’ll also have an easier time improving your online search engine rank and visibility.
2. Price Your Products Competitively
Operating your business in a bubble isn’t the best strategy for success. If you’re not paying attention to what the industry is doing as a whole, you could end up making unwise decisions. This is especially true when it comes to pricing your products. You may think your offerings are currently reasonably priced. However, if the neighbouring business prices similar products lower, you’re disadvantaged.
Every competitor analysis should include information about typical pricing for services and products similar to yours. Use this information to price your products as competitively as you can. Remember that some companies seek to eliminate the competition by pricing their goods unrealistically low. They’re willing to take a temporary loss if it means they’ll soon monopolize the industry in their area.
If you can’t bring your prices down to your competitors’ levels and still make a profit, you can fall back on other strategies. For example, excite the quality of your products and point out how they’re better than similar offerings on the market. Emphasize how your customer service department goes above and beyond to keep consumers happy. Most customers will pay more for quality products and exceptional customer service.
3. Learn How to Do Things Better
You might feel like you’re doing everything exceptionally well if you never analyse the competition. You may have good profits and a great customer base. You might regularly release top-quality content that establishes you as an industry authority. It’s easy to assume you’re doing everything right. However, it’s rare for any business to get everything perfect for their customer base.
When performing a competitor analysis, you’ll learn how other industry leaders excel in areas where you fall short. For example, you might think your customer service is top-tier. But after looking at your competitors, you might discover they offer better service. Perhaps they give customers free shipping on returns, but you don’t. Or maybe they provide round-the-clock customer service when yours is limited to regular operating hours.
After comparing, you’ll gain an invaluable understanding of how you can improve. You’ll see areas where other businesses excel and you lag. It can be painful to have your deficiencies laid out in glaring detail. But remember that progress naturally comes with some growing pains. You’ll eventually turn your weaknesses into strengths as you focus on improving them.
In a cutthroat economy, standing out for the right reasons is essential. Giving customers a reason to choose you over similar businesses would be best. A competitor analysis can help you identify current weaknesses and strengths you didn’t know you had. Use the insights you glean from your study to make positive changes and drive your business forward.
