Business

5 Reasons Why Your Business Needs To Conduct a Competitive Analysis

By Gowtham Raj on March 22nd, 2021

Are you conducting regular competitor analysis for your company? To make the most out of your marketing efforts, competitor analysis is a must, as it helps you stay competitive in your industry. 

If you’re wondering how competition research can aid your company, keep reading. In this guide, we will go over some key benefits that come with checking out your business competition and using this information to develop your marketing strategy. 

1. Become More Self Aware as a Brand 

While competitor analysis allows you to learn tons of information about other companies in your industry, it also helps a brand learn much more about itself and where they stand in the marketplace. The self-awareness that comes from doing this competitor research allows companies to understand competitors so that brands can figure out what unique value they bring to their customers that sets them apart. This allows companies to figure out where there are strengths and weaknesses in the market and how they can tackle these areas. 

Doing this research is especially important for companies going through growth, change, or transition. Additionally, if you notice that you are hitting a slow point in terms of bringing in income, a competitive analysis can help you identify areas you can improve. If your business is booming, a competitive analysis can help you keep the momentum rolling. 

Analyzing the marketing strategies and branding of your competitor can help you identify specific openings in the industry for your own business while also being able to address your own weaknesses compared to others in your industry. 

2. Set Your Brand Apart 

Competitive research and brand self-awareness can help you develop strategies in your marketing that set you apart from businesses like yours in the industry. This research allows you to identify trends in the field that are overused and unoriginal so that you can prevent repeating these patterns. This helps you figure out deliberate strategies that will put you ahead of competitors by highlighting what makes your company unique.

This will help you signal to your customer who your brand is within the industry. This can help you build strong brand awareness, as you are no longer blending into the sea of your competitors. 

3. Prevents Being Caught By Suprise 

A great way to avoid being caught by surprise by your competitors is to do regular competitor research. Many companies make the mistake of getting comfortable when they are doing well in their industry. You may think if your company is doing well that you don’t have to worry about what others are doing, but this is a false sense of security that can get your business into trouble. 

This research will help you keep up to date on all the innovations going on in your industry to make sure your company is thinking of ways to stay modern and relevant. This can help you counter or figure out more advanced ideas than your competition before they catch you off guard with a new marketing plan. Without keeping an eye on competitors, you risk running blind in your industry which can cause you to fall behind. 

You want to keep an eye out for key opportunities in your industry to make sure your competitors don’t outrun you in the race to fulfill market demands. 

4. Learn More About Their Marketing Tools and Strategies 

Another great perk that comes with researching your competition is that you can get an idea of what kind of marketing tools and tactics they are using to generate leads. This will allow you to see gaps in your own marketing plan, allowing you to stay competitive with others in your industry on multiple different platforms you may not have been utilizing. Additionally, keeping an eye on the marketing strategies that your competitors are not using can help you hone into that area if it is generating quality leads, or leave it behind for a better method if it’s not generating the leads you desire. 

Look into how they generate website traffic by looking at their social media, SEO, and PPC strategies. Looking at competitors’ websites can also help you identify keywords that they are using to generate leads. This can help you strengthen your keyword usage by using their keywords to rank for certain results or to come up with unique keywords that competitors aren’t using. 

Look at the sources where your competitors are driving traffic as well as the tools and strategies they are using to do so. Figure out how these strategies work for your competitors and how you can implement these elements into your own marketing plan, or make robust decisions in your marketing efforts. 

5. Know Why Customers Chose Your Competitors 

One of the key findings in a competitive analysis is figuring out why customers of your competitors are choosing them over you, or others in your industry. You can do so by looking into their buyer’s journey to figure out what features of your competitors appeal to their customers. This can allow you to learn more about the strategies other companies use to turn leads into customers and how you can do the same. 

Some Key Benefits of Performing Competitive Analysis 

As you can see, there are tons of perks that come with analyzing what your competitors are doing. Stay ahead in your industry by performing competitive analysis on a regular basis. 

The best way to get access to in-depth competitor research is to hire a team of professionals. To get started, contact the experts at Tart Labs today. 

By Gowtham Raj

March 22nd, 2021

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