Whether you’re a market leader or you’re just getting started, analyzing competitors should be high on your priority list.
The competitive analysis provides you with concrete and actionable insights that can help you improve your product or service, discover growth opportunities, attract new customers, and more.
Since competitive analysis is one of the most important factors in running a successful business, we compiled this blog with all the necessary information and tools one should know.
Let’s start with the big question first!
What is a competitive analysis?
“A competitive analysis is a strategy where you identify major competitors and research their products, sales, and marketing strategies. By doing this, you can create solid business strategies that improve upon your competitor’s.”
Be careful not to fall into the trap of focusing too much on your competitors, and forgetting about your customers. Yes, tracking competitors is important, but you’re not here because of them. You’re here because of your customers.
Just because a competitor is doing something (or not doing something) does not automatically mean that you should or shouldn’t do it too. Always have a big picture in mind and let that guide your business decisions. As we’ve already mentioned, competition analysis is ONE of the most important factors, not the only one.
The purpose of competitive analysis
The purpose of the competitive analysis is to discover:
- who are your competitors,
- what are their strengths and weaknesses,
- how are you performing in comparison
- what type of customers they have
- what marketing strategies they use…
…the list goes on!
The important thing is to focus only on the aspects relevant to your business.
For example, if you notice your competitor is in some type of crisis, monitor closely what caused it, how they’re responding and how the customers are reacting. By doing so, you’ll learn from their mistakes and avoid the same thing happening to you.
The more you know and understand about your competitors, the better decisions you’ll make which will result in your competitive advantage.
The benefits of competitive analysis
The benefits of doing competitive analysis can be vast.
We’ve already hinted some of them earlier in the article, so here’s a detailed explanation of what we exactly meant.
The most obvious benefit that you can get from the competitive analysis is finding out how your brand performs in comparison to your competitors.
It may be that the situation is better than you thought, but there’s also a possibility it can be worse. In both cases, it’s useful to have insightful and actionable data to guide your future business decisions.
By analyzing the competitors’ products and customers’ reactions to their products, you can identify potential improvements and changes that would put your product ahead of the competition.
This is especially important in highly competitive industries where you always want to be (and need to be) two steps ahead with new ideas and innovations.
By monitoring what’s happening in your industry, you can spot upcoming trends. That way you’ll be able to implement those trends into your communication strategy, or even products early on. Being on-trend and offering your customers “the next best thing” can help you get ahead of your competitors and position you as an industry leader.
Aside from trends, competitors analysis helps you spot market newcomers.
If your content is not engaging enough for your target audience or you’re just out of ideas, take a look at what your competitors are doing. That can give you some inspiration and guidance.
Check which topics they’re covering perform the best, what type of content they’re producing, where do they share their content, etc.
Learn from (other’s) mistakes
We’ve already mentioned this example at the beginning of the blog.
The best way to avoid mistakes is to learn from them, especially if they’re not yours. Keep in mind that crises happen all the time, but make sure you’re not repeating the same mistakes your competitors already did and pay attention to the way they handled their crisis.
Look for sites that are linking to your competitors the most and try arranging link-exchanges or guest blogs with them.
By doing that, you’ll be sure that you are getting high-quality links that will help your overall ranking.
How to conduct competitive analysis
Analyzing competitors needs to be based on data and facts, not guessing. It’s not enough to glance at the competitor’s social media and call it “competitor analysis”. In the next chapter, we’ll mention some tools that can help you with competitive analysis, but for now, let’s see what information you should be looking for in the first place.
Here are some of the information HubSpot suggests you should look for:
- Who are your competitors?
- What products do your competitors offer?
- What are their sales tactics and results?
- What do their pricing and perks look like?
- How do they market their products?
- What is their content strategy?
- What technology stack do your competitors’ use?
- What is the level of engagement on their content?
- How do they promote marketing content?
- What are their social media presence, strategies, and go-to platforms?
- What are their strengths, weaknesses, opportunities, and threats?
When identifying your competitors, make sure you focus only on the ones that are your direct competition. Direct competitors are brands that are offering the same product/service as you and are targeting the same audience.
No matter what, don’t assume that you don’t have competitors and therefore fail to do the competitive analysis because the chances that you don’t have competitors are really small.
Also, update your competitive analysis regularly to make sure you’re always leaning on the best possible data.
Tools for competitive analysis
Now that we established what information you should be looking for in competitor analysis, let’s move on to the tools that can help you. There are different ways you can analyze and track competitors, depending on the information that is most relevant to you.
For example, you might not want to conduct an in-depth competitive analysis, but only focus no learning how successful is your competitor’s social media strategy, or their content marketing strategy, SEO, etc.
Luckily, there are tools that can provide you with that type of information with just a few clicks.
Ahrefs – improve SEO
With Ahrefs, you’ll be able to check your competitors’ website top organic keywords, ranking and best performing content. That way you’ll know exactly what’s working for your competitors and start doing it yourself.
Besides main paid tools, Ahrefs is offering some free ones such as backlink checker, website authority checker, WordPress Plugin, Keyword Rank checker, etc.
Mediatoolkit – monitor online mentions
Mediatoolkit is an award-winning media monitoring and social listening tool that notifies its users immediately when their company, products, or services are mentioned in any language across 100+ million online sources.
With the tool, you can track your competitors’ mentions and create competitive analysis reports in which you can compare the share of voice, top influencers, top sources, sentiment, and more. Furthermore, the tool is also great for finding out what the media and customers are saying about your competitors online.
Suggested read: How to Use Media Monitoring for Competitor Analysis
Similarweb – monitor the website’s statistics and strategy
SimilarWeb gives you global multi-device market intelligence to understand, track and grow your digital market share.
The tool can help you reveal the best strategies from the market and your competitors, understand your market, competitors and consumers, enhance the performance of your sales funnel and evaluate companies and empower better investment decisions.
SimilarWeb has a Chrome extension that shows you website traffic and key metrics for any website, including engagement rate, traffic ranking, keyword ranking and traffic source.
Owletter – monitor competitors’ newsletters
Owletter automatically captures all emails sent from a website to their mailing list. It then takes a screenshot, stores it and analyses it, alerting you about the email if it’s important to you. You’ll never lose another email and you’ll learn loads about your competitors’ email behaviour.
With Owletter you can find out how your competitors’ email marketing strategy, get analytics of their performance and have all the emails in one place where your whole team can access it.
Adbeat – monitor competitor’s ad strategies
Adbeat provides you with insight into what are your competitors’ most profitable publishers, ad copies and landing pages to help you run more profitable display campaigns. The tool shows you the sources of ad traffic including how the media was purchased and what publishers the ads were running on.
Their reports provide you with side-by-side and overlay visualizations that help you identify key differences between your competitors.
To sum up
Competitive analysis is something you should do regularly in order to keep up with your competitors. It often takes a lot of time and effort to conduct a quality analysis, but the benefits of doing one are great.
Luckily, there are a lot of tools available out there that can help you automate the process, and some of them are listed in this blog.
Use the data gathered in your competitive analysis to improve your own strategy, product or services, and achieve competitive advantage.