When was the last time you conducted competitor research for your business? And, do you know how to run one effectively?If the last “competitor research” you ran was a quick glance at your competitor’s social media presence and website, you’re missing crucial data. Learn how to perform competitor research to give your brand a competitive edge in the market.Wanna stand out from the competition? Schedule a customized strategy call with a skilled conversion expert at Ampry today!
Which Competitors Should I Compare Myself To?
Competitor research involves researching your primary competitors to gain insight into their marketing strategies, products, and sales. Warding off competition, capturing a bigger market share, and executing effective business tactics are some of the few benefits of conducting a competitor analysis. Conducting competitor research can also help you understand how your competitors work and identify potential opportunities to outshine your brand. In addition, it can help you stay up-to-date with industry trends and ensure your products or services are constantly meeting and exceeding customer expectations.However, to run a successful competitor analysis, you need to determine which competitors you should compare yourself to. To do that, you’ll need to determine who you're competing with so you can gather accurate data. However, it’s important to note that what might work for a brand similar to yours might not work for your business. So how do you determine which competitors to compare yourself to?First, divide your competitors into two groups:
- Direct competitors
- Indirect competitors
Direct competitors are companies that offer services or products similar to yours, and operate in the same geographical region as your company (Walmart vs Target).On the other hand, indirect competitors provide different things from your business but may solve the same pain points and meet the same consumer needs (Wendy’s vs Olive Garden).Keep these businesses on your radar because they may shift positions at any time and become your direct competitors. Therefore, routinely conduct competitor research. The market can change at any time, and if you aren’t constantly monitoring it, you’ll know about these shifts when it’s too late. If you still need help identifying your direct and indirect competitors, conduct a Google search. By typing in your product on Google’s search bar, most likely, your top competitors will show up. You can even ask prospective customers what products or services they’re already using.
How Do I Improve What My Competitors Are Doing?
To build a successful brand, you need to improve what your competitors are doing. However, doing that is often easier said than done, and there’s no simple answer to how to improve what your competitors are doing.Competitors exist in every industry. Smart business owners neutralize the effect of competitors to increase their market share. How do you accomplish that?After conducting extensive competitive research, you’ll have a clear picture of the market and many ideas on how to improve your offerings to stand out from the competition. To improve over competitors’ offerings, think of ways to make your services or products stand out. Further, from your competitor analysis, recall the things your target customers need. To do that, consider:
- Features you can do away with to reduce the cost of your product or service. Often, customers rarely mention features that seem redundant, and these features are often costly.
- Factors you can lower below the industry standard. These may include factors that need to be there, but you can significantly level them down without affecting your customers' value. Of course, it’s fantastic if price will be one of them!
- Aspects you need to raise way above the industry standards, especially if that won’t cost your business a fortune. What do your current customers wish they’d get more of?
- Creating new features your top competitors don’t have. Or you can borrow these innovative features from other product categories. For instance, in the airline industry, this may include offering frequent departures that traditional airlines don’t provide—but car travel offers.
Staying Ahead of Competitors (Not Just Mimicking, But Innovating)
As soon as you stop being innovative and start copying what your rivals are doing, you may find yourself far behind. You have your own resources, capabilities, and strategies, so you need to remain true to your business model and optimize them in the best way possible. Being a beginner in ecommerce means you should run competitor research to determine what your competitors are doing better than you are and develop innovative ways to improve your business and beat the competition. The businesses that fail are stagnant and rely on outdated methods to stand out, and eventually, as their competitors become more successful, they leave these companies behind. Don’t let this happen to your business. A market that’s already saturated has less room for expansion. However, it’s crucial to expand your services and products by offering something unique to your audience to build your niche and reduce the existing competition. To stay ahead of the competition, you also need to identify and solve your target customers’ pain points. Ask open-ended questions to know what your target audience wants to derive more value from your products or services. After identifying your customers’ pain points, try to solve them by discussing their problems using the terms customers use. Once you have a clear picture of your customer's pain points, determine how your products or services can solve those issues and improve your customers’ lives. Focus your efforts on offering solutions to customers’ pain points, not just trying to market your product or services to them. You’ll generate more conversions and sales once you fill the void your competition has. Further, you need to get your pricing right to beat the competition. The best pricing strategy ultimately revolves around marketing psychology. So before you create your pricing strategy, you must determine what your competitors are doing. First, identify which businesses in your industry offer the best value for money. Your price should be standard and must have a competitive edge. However, an effective pricing strategy doesn’t always mean you should lower the prices of your existing offerings to beat your competitors.Another innovative way to stay ahead of the competition is to offer exceptional customer service. Consumers love brands that offer outstanding customer service. If you make your customers happy by delivering excellent customer service, you’ll build a loyal customer base by referring them to friends, family, and colleagues. To offer outstanding customer service, hire customer service employees who have an in-depth understanding of your service and products. Ensure your customer service staff are patient and deliver satisfying answers to every customer’s question or concern. Your customer service team should have a problem-solving approach and always gather customer feedback. Customer-centric businesses are powered by dependable employees who set a higher standard of customer satisfaction. Also, consider offering offers and freebies that your competitors don’t provide.
Final Thoughts
Don’t forget that the goal of conducting competitor research isn’t to copy what your competitors are doing; it’s to gain insights into areas where your brand falls short in the market and find new opportunities to make your services or products stand out.Ultimately, focusing on your audience and gaps between supply and demand will be more valuable than focusing on the competition. And that’s why competitor research is critical—it can help you find innovative ways to serve your customers better.Are you looking to provide more personalized shopping experiences? Then, treat your web visitors as individuals and upscale personalization. Schedule a free customized strategy call with a seasoned conversion expert at Ampry.