In a world where consumers go online to get informed about brands, products and services, your digital marketing strategy needs to do more than stay ahead of the latest trends. Part of your marketing strategy should include taking a close look at your competition. By being aware of the strengths and weaknesses of your opposition, you are able to improve your own products and services.
If you want to build your online presence, you need to perform a competitor analysis. This analysis will help you identify threats and opportunities in the marketplace. For example, if your competitors are offering value-added services that you don’t, it may be time to add these to your portfolio. Or perhaps your competitors are coming under fire on social media networks and you can apply some of this criticism to improve your own brand. There may even be an opportunity for you to acquire new customers.
Competitor analysis has been identified as an essential, but overlooked, part of digital marketing. In fact, the systematic profiling of your competitors can give you a strategic advantage.
10 Reasons to perform a Competitor Analysis
- By performing a competitor analysis, you are able to gain insight into your competitor’s weaknesses. Your company can potentially use this knowledge to create new revenue steams, by filling a gap that your competitors are not adequately servicing.
- Examining your rivals and how they are positioned in the marketplace will help you get an understanding of the industry’s best practices, which you can use to set a quality standard for your own business.
- Paying attention to the criticism being lapelled at your opponents can help you improve the quality of your own products and services.
- A competitor analysis can also help you anticipate your competitor’s future plans, allowing you to respond to these timeously.
- If you hire a digital marketing team to perform a competitor analysis for you, they can draw up charts to show you how your business compares to competitors. This can inform your future strategies and help you set goals and you can also use this material in investor pitches.
- Using analytics tools, you are able to gain an understanding of how your competitors are driving traffic and acquiring customers online. You can use this valuable information to expand your own online reach.
- Using online tools, you can also track what sites are talking about your competitors and what they are saying. This valuable information will give you a good idea of how you compare and what you need to do in order to catch up.
- If you pay close attention to the changes your competitors implement as well as the market reaction to these changes, you will be able to learn from their mistakes.
- It is only with a deep understanding of you competitor’s position in the marketplace that you are able to distinguish your own market position.
- It is a good idea to look at how you compare with your rivals on social networks in terms of followers and engagement. This can help you inform your social media strategy and gain more followers with deeper levels of engagement.
If you haven’t already down so, you need to perform a competitor analysis.