You’d be surprised what your competitors are up to. We know we always are.
Many times, in meeting calls, we get asked: how do you do an in depth research of our competitors? What tools do you use? Do you find insightful information? And while we cannot sum all the answers of the questions in a few words, we have created a dedicated article so we can go over some of our insights into our Competitors Analysis service for companies and brands.
In today’s article we are going to go over the main reasons why your company needs a more in depth review and analysis of its competitors, how this will benefit your business and how we do things at CSR Growth. To get started, we want to highlight what is the most common mistake we see companies make when they are doing a competitors analysis.
Common Mistakes we see when it comes to Doing a Competitors Analysis
One of the common mistakes that we see is that companies or brands do not know enough information about their competitors. In best case scenarios, they do a yearly or quarterly review of their competition and they get some insights and a starting point, however, based on what we know, this is not enough.
You will find out, more times than not, based on our research and analysis that you do not really know what your competitors are doing. You know that they are there, you know their products or services, but you do not know: their strategy, next steps, price changes, website changes, their target market or audience and how their customers are currently responding to what they are doing.
Let’s take an example:
Your company is noticing a decrease in online revenue and sales coming from your PPC efforts. While this can have many reasons behind it (campaign strategy, potential tracking issues), let’s address that your competitors have changed their price on the website and they are offering a great discount.
While, in theory, this should not affect you a lot, in real life, if your product is not very differentiating, in most cases, the customers will choose your competitor over you. It does not matter if you have a better product or a better margin, you are losing potential revenue and clients because you do not know what is happening in the market at that time. And we guarantee that this happens more often than not.
In many cases, it is normal to see some periods with declines in performance (seasonality, changes or any other changes in customer behavior) but we know that there are many times when you are wondering why your performance declines over a shorter period of time? We bet you never thought about your competition before. Did you?
This example explains very briefly why we offer the Research & Analysis of your Competitors service.
Now, let’s go over the top reasons why you should do an in depth research of your competitors and how it can benefit your business in both the short and long term.
- Helps Discover what you business is lacking
There will always be gaps to fill in any sector of your business, but doing an analysis and review of your competitors will help you to stay up to date with the latest trends, latest products, and find more information about what is important to your customers and how are their responding to what is already in the market. It’s easy to miss out the big picture, when you are focusing on the details, and a well done competitor’s analysis will help you connect the dots between what you are missing and where you are headed.
- What about Sales and Marketing?
Do you know what your competitors sales and marketing strategy is? How do they get their clients? Are they present in the online world? Do they have great creatives? Do they run ads? How about Email Marketing? What’s their funnel strategy? What is the journey that their customers take to get on the website and potentially convert? What if they do not have a website? How do they reach their clients? While these questions can seem quite easy at first, they are very well put together.
These questions are only the tip of the iceberg when it comes to researching and going in depth about one of the most complex aspects when wanting to understand your competition. It is not easy but it is challenging and worth researching.
- Marketing Position?
When was the last time you evaluated your position in the market? Do you know how to do it? Do you think it is important for you and your business to know where you currently are positioned in the market and where you want to be in the upcoming period? Do you have a strategy in place for this?
If you answered no to any of these questions, our recommendation is to start thinking why you did not. Do you think there are aspects in your business that you are lacking? We have got you covered. Learn more about what we do.
- Use your Competition to Learn
Having competitors is a great way to learn and unlearn. During the research phase you get to learn what your competitors do and do not do and this can be categorized as a learning experience. You get to see first hand, their success, their mistakes and better anticipate their next steps in order to try to be on top of their every move. And guess what? It also helps you move better in your steps. We all have to learn from each other, the question is, when do we start?
Why CSR Growth?
As a conclusion, we are always eager to learn and help businesses rethink and re-adjust their strategy. At the bottom of CSR Growth, relies on our mission and motto : “To Reshape the Way Companies Think & Act.” We believe that it is time to run Businesses differently and to incorporate and consider all aspects of a business when making changes. In our practice, we embrace a holistic approach and we are always eager to learn more and help. We are dedicated to what we do and we like to say that it shows.
Also, we did not touch upon all aspects that we cover in our in depth Research and Analysis Service of The Competition, mainly because this article is for reference and does not include all the aspects that we are going over and consider when working on this service.
We have both internal and external tools that we use, as well as frameworks that help us evaluate the micro and macro picture, while also evaluating and going over the next steps that need to be taken after the research and analysis phase has been complete.