Deep dive into the competition

To put it simply: the better you understand your competitors, the better your chance of getting ahead.

But if we asked you when you last conducted a deep-dive into your competitors, would you be able to answer us? 

For many businesses, the answer is never.

For others, there’s the belief that scanning social media channels and browsing a website is enough.

We’ll tell you now that it’s not.

In fact, that’s just being a bit nosey.

Sure, social media will enlighten you, but it won’t tell you everything. And when it comes to understanding your competition, it’s best to be as thorough as possible. 

What is a competitor analysis?

Far from simply looking at top-level data, a competitor analysis is actually identifying who your competitors are and researching their strategies – products, sales, marketing and everything in between.

Why is it so important?

Glad you asked!

By conducting an in-depth competitor analysis, you can create strategies that improve on your competitors, helping you climb the business ladder, one competitor rung at a time. 

What other benefits does a competitor analysis have?

Well, it helps you see the unique elements of your product or service. It also identifies what your competitors are doing right and what they are doing wrong, showing you how to stay relevant and where the opportunities lie.

Finally, it provides an excellent benchmark on which to measure your own business. 

Leave the scuba divers in your wake

Yep, we’re not just talking a simple scuba dive here. We’re talking deep sea level diving into the depths of your competitors. 

Step One: Figure out your competition

You can’t analyse anything if you don’t know who your biggest competitors are.

We’d recommend creating a list of 5-10 businesses to explore. This is one of the most important steps, which is why it is STEP ONE.

Picking the right competitors is key. Picking the wrong ones will just become a waste of time.

A suggestion here is to divide the businesses into direct and indirect categories. Direct competitors are those with the exact same service or product. Indirect are those with similar products or services that would solve the same customer problem as you. 

Step Two: Understand which areas you need to examine

This will, of course, be determined by the industry you’re in.

Generally speaking though, you should be looking at the company overview, including any funding they have received.

You should also be exploring the service or product offered, their share of voice and how their social media platforms perform, and of course, their marketing, which includes influencers, content marketing, customer service and their SEO.

It’s also important to look at whether there are any unique strengths each competitor may have. For example, do they have an industry influencer as an employee? 

Step Three: Methodically make your way through each competitor

This is where organisation is super important. Create a table, spreadsheet, chart, whatever will make it easiest for you to understand the market.

You can then figure out how your business stacks up and where you can improve.

And remember, a competitor analysis is not a static document. It needs to be updated regularly to ensure information is at its most current. 

Use it to your advantage

A competitor analysis can be an arduous task. But it’s fulfilling work and it’s important work.

In fact, when done correctly, the rewards can be huge for your business.

Remember, understanding your competition means you can improve everything about your business by finding the gaps, embracing the opportunities and objectively positioning your brand correctly.