How to Deal With Competitors

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How to deal with competitors

When you look into your customer’s minds, you will discover dozens of competitors vying for their money. (And if you believe your startup is uncontested, reconsider.) Your customers always have an alternative solution in mind, even if that means doing the work themselves. Or do nothing. You need to understand where you stand in the market and what you must do to win new customers if you want to gain competitor intelligence. We ask how to deal with competitors.

How is competitive intelligence defined?

Competitive intelligence is the critical gathering of data about your products, clients, and rivals, and competitive analysis is the same. Knowing your competitors allows you to:

  • Improve your marketing return on investment before investing a single dollar in marketing
  • Inform you where your startup should position itself for high growth.

Ways to obtain competitor intelligence?

Competitive intelligence benefits every startup, although not every startup needs to conduct competitive intelligence research. Having data to support your strategy is profitable, and you can accomplish this by conducting quality competitive intelligence research.

Ignoring competitors is not the way to go, and many do. Preferring to find the drawbacks of performing a competitive analysis? The biggest one is that competitor analysis may tell you your startup is not a good idea. And startups will ignore that anyway. You can skip the competition, but ignoring them doesn’t mean they aren’t vying for your customer’s money.

How to do a fundamental competitive analysis?

First, list out all the competitors you know about. Second, use review sites like G2 Crowd and TrustRadius to identify competitors you may have missed. Finally, you must speak with customers to discover what solutions they have employed in the past. It is a misconception that you don’t have to take the last step of asking clients because you already know most of your competitors.

A competitive analysis aims to help you gain more customers, and the customer purchases your product, not you.

Entrepreneurs frequently miss 30-40% of their competitors by not talking to their customers. Customers are already aware of the solutions they use to solve the problems your tool solves. Furthermore, you may miss out on emerging products that your customer is already familiar with. When you perform customer discovery interviews or customer experience interviews, you should conduct a competitive analysis.

Sort your competitors

Stack your competitors into different market niches after you’ve found them. Large markets typically have numerous niches. You can choose how you segment the marketplace, but you must segment it so your clients are motivated to buy. If you want to see whether your market is real, you can conduct keyword research to find out. Once you’ve identified the primary market segments, decide which one to go after first.

It is easier to win a small market and then expands into a larger one than to conquer the entire market. Focus on the battles you can win again and again. So take on serving the smallest viable market. Become the biggest fish in the pond by serving the smallest market you can. Wash, rinse, and repeat until you’re the one no one can ignore. 

Find out what matters

Find out what matters to your customers after you have chosen your niche. A competitor’s pricing page is a great place to find out what features are essential to their customers. You should write down all the features in a spreadsheet, even if the features aren’t necessary. Then, mark down who offers what features and, where they are relevant, how much of that feature they offer.

Finally, you should determine what features your audience values most and least. Every feature they value least gets -1 point, while every feature they value most gets +1 point.

The customers’ preferences are revealed when you add up the points in the example above. You should also look at how well your competitors perform on various marketing channels.

Where to start

The most efficient method to examine your competitor is to investigate their website and talk to your clients. You can also explore review sites and blogs and survey customer views on social media. Looking at competitors’ websites is important because it allows you to compare what you learn with what competitors do. As mentioned, this will enable you to look at a competitor’s website and see what they are doing.

Reviews

Talking to your customers will give you valuable insight into your competitors’ success. It’s important to note that some review websites compensate users for posting reviews, and fake reviews can be generated if you aren’t careful. Knowing how affiliate blogs and review sites select the items to feature and review is also important.

Social networks have several great competitor intelligence resources (including Reddit communities, forums, Twitter, Quora, Facebook Groups, and Slack). Because these services are free, they are less susceptible to bias. Using social media to research your target audience can lead you to build the wrong product, which may result in you developing a product for the wrong consumer. Also, the data you gather is more likely to be obsolete.

What’s next?

Once you have completed your competitive analysis,

identify your company’s optimal growth channels, and position your startup first. Then you will be able to provide customers with a solid reason to choose your product over the competitors.

How to deal with competitors

In conclusion, in this article, we asked how to deal with competitors; the competition for customers’ money is fierce. Businesses should use the best strategies to stand out and win new customers. This can be done by offering customer-focused products, creating an unforgettable experience, leveraging new technologies, staying ahead of trends, and using effective marketing tactics. A competitive edge is essential in this market, and businesses must stay on top of their game to succeed.

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What is competitive intelligence?

The collection and analysis of information to make sense of what’s happening, what's next, and what you can do to enhance your competitive advantage.

This is a drawing of the Octopus Intelligence Logo By Octopus Competitive Intelligence, Due Diligence, Competitor Analysls, Market Analysis, Competitor Research and Strategic Business Development to beat your competitors, increase sales and reduce risk

Want to know more about market and competitive intelligence and how it can help you beat your competitors?

We find the answers to beat your competitors, make better decisions, win more business and see what’s next. Since 2008, Octopus has been at the forefront of people-powered competitive intelligence solutions, helping brands, enterprises, high-growth SaaS companies, and startups. Globally, we have undertaken hundreds of competitive intelligence projects, providing straight-talking, actionable intelligence and cutting through the clutter with clear, concise deliverables.

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