Business is all about being a step ahead of your competitors. The firms that do not care about it are not able to survive in the long run and ultimately perish. Adapting to the latest technologies that work well for the competitors would ensure opportunities for the growth of the business and help in generating leads. This also requires in-depth knowledge of the process of competitor analysis. Competitor analysis is a crucial part of the whole marketing plan as it provides information about which strategies are the most beneficial for the business.
In this article, we have included comprehensive information on competitive analysis and a go-to guide for marketers in 2023. These will help you in ensuring that your marketing efforts remain relevant for the target audience.
What is Competitive Analysis?
Competitive Analysis can be understood as a strategy that is deployed by marketers and businesses to determine the marketing strategies and tactics being applied by the competitors for generating a greater amount of traffic, leads, and sales.
A thorough analysis of your competitors would help you in understanding the strengths as well as the weaknesses of the competitors. This will help in building an effective marketing strategy for your business.
Why is it Important to Research Competitors?
Technology is evolving daily and it becomes very difficult to follow every change and update if the business does not have a dedicated team for it. This is where competitive analysis comes into the picture.
According to the Brisbane SEO Agency, Competitive analysis is a way to ensure that you remain at the top of your marketing efforts and can get maximum benefits out of them. It helps in understanding the strengths and weaknesses of your competitors so that you can update your marketing strategy accordingly. Thus, you can create a successful route for your business and stay ahead of your competition.
How to Identify and Evaluate Your Competitors?
In the online world, it can be said that any website where your target audience spends time is a threat to your business. However, with the huge number of websites and blogs present online, it is nearly impossible to analyze each one of them.
To resolve this issue, your business needs a list of competitors that are in the same niche and are selling products and services similar to yours. This list of competitors should include the businesses and firms that have the same target audience as yours. Thus, what your business should strive to find are the direct competitors of the business.
Who is a Direct Competitor?
The direct competitor of a business is the one that provides products and services similar to your business and caters to the same target audience.
Although direct competitors should be the main focus, however, it is not a good idea to completely ignore the indirect competitors of your business. In case an indirect competitor extends its business to include products and services from your niche, they would become your direct competitor. Doing regular competitive analysis ensures that you can immediately find out any new competition that might crop up.
How to Start Competitor Analysis in 4 Easy Steps
Step 1: Identify the Top Competitors in Your Niche
Several tools can be used to identify the top competitors in your niche. Some of these tools are Ahrefs and SEMRush. Alternatively, you can use Google Search to find out the competitors. All you have to do is type the keywords that you want your business to rank for and check out the businesses that come on the top.
Step 2: Find Out the Competitor’s Content Marketing Strategy
Start by checking what kind of content the competitors have published on their sites. This will help you in finding out whether their marketing strategy is inbound or outbound. As you analyze further, you would be able to decipher the quality of the content and the topics from which they gain maximum traffic and leads. You can also check the frequency with which they publish new content. This will help you analyze how fast you need to produce content on your website.
Step 3: Check for the SEO and SMM Strategy of the Competitors
It is also important to find out and analyze the competitor’s SEO strategy so that you can optimize your web pages accordingly. Additionally, social media traction has today become a deciding factor for the success of a business. Hence, it is a good idea to check the social media channels of your competitors and find out what strategies they are following to keep their audience engaged and gain more customers.
Step 4: Identify Improvement Areas
The above steps have helped you find out more about your competitors- how they are performing and the different strategies being applied by them. It is now your turn to find out where your business is lacking and cover up the loopholes. This way you would develop a strategy that will help you in coming on the top.
Top Tools to Perform Competitor Analysis
Many tools can help you in performing thorough competitor analysis and identify the opportunities as well as threats for your business. Some of the popular tools are as follows:
- SEMrush: This tool helps you in evaluating the marketing efforts of the competitors on four different fronts: Content, SEO, Social Media, and Advertising.
- Ahrefs: This is one of the best tools if you are looking to conduct a detailed backlink analysis of the competitor’s domain.
- Moz: This is a great tool if you are a beginner. It will help you in understanding your target audience and keep track of your ranking while comparing it with the competitors. It will also help you in conducting audits and optimizing your website wherever required.
Competitive analysis is an important part of developing a marketing strategy, however, it does not mean that you have to watch the competitors all the time with a hawk. You need to keep regular tabs on how they are changing their business and making it grow. Competitive analysis will help you in creating the perfect strategies for becoming a leader in the market.