What competitor analysis trends are their beyond 2023?
Competitive analysis is a strategic approach that entails researching and analysing the key competitors in a particular market or industry to learn more about their goods and sales, strengthen business strategies, gain market share, and outperform business rivals. As we enter the second quarter of 2023 and budgets are renewed, some companies are brimming with innovative ideas. This includes your business competitors. While some will take a cautious approach and streamline their operations to prepare for any potential downturns, others are embracing the potential of artificial Intelligence and other things to drive exponential growth.
Some may be focusing on talking to their customers—human to human. Now, there’s an innovative idea. A human picks up the phone with a problem, and another human answers your call and attempts to solve the problem. You know it may catch on. Despite differing viewpoints, it’s clear that competition in the business world is only intensifying.
Eight ways for identifying and focusing on trends in competitor analysis:
1. Track each activity
Take a consistent look at their go-to-market strategy without obsessing with their every move and price change. Keep an eye on their products, R&D, patent applications, packaging, pricing, news and events. Monitor and assess changes to the team. Look at their online reviews, content, advertising and social media channels. Ask questions like:
- Who is their target market?
- Who is consuming their content?
- Why are they doing this and that?
- How’s it going to affect your business?
- What can you do about it to get in front of them?
By fully understanding the strategies being used by the industry, competitors will be able to avoid mistakes they make, thus optimising and improving their processes for better outcomes.
2. Carry out research
To help develop a product marketing strategy, surveys can give a thorough picture of the competitive environment. This can make to understand preferences, perceptions, and market trends by surveying customers to learn about their interactions with rivals.
3. Analyse your own feedback from the client
Analysing customer feedback help to identify areas for improvement and profit-making. Furthermore, by understanding customer feedback, one can locate rivals’ flaws and create plans to counteract them.
4. Drill down on pricing
Setting own competitive prices requires knowledge of both the pricing environment and the pricing strategies used by the competitors-
- By analysing what customers are willing to pay for similar products or services, you can gain valuable insights that help you make informed pricing decisions. This allows you to adjust our prices to align with customer expectations and enhance your overall competitiveness.
- It enables us to gain a deeper understanding of rivals and discover their tactics to draw in and retain clients (prestige pricing, penetration pricing, etc.)
- It also gives the option to set its own prices, ensuring it has the best possible chance of succeeding without relying solely on the rivals’ prices.
5. Monitor review
Learn more about the quality of the rival’s product and find opportunities to enhance their own offerings by keeping an eye on customer reviews of their products on sites like Trust Pilot and G2.
To stay competitive in the market and provide better service to the clients, use this information to refine services and products. Additionally, target potential customers who might prefer competitors’ offerings.
6. Quarterly review
Monitor and review the progress and situation of your competitors to identify any possible vulnerabilities they may have and capitalise on them to gain an advantage. Benchmark them with each other and yourself. This gives an understanding of what is and isn’t working for competitors, enabling you to find ways to apply those strategies to their advantage.
7. Determine their ideal customer profile
One of the most efficient ways to identify your direct and indirect competitors is to know your rival’s target customer (also known as their buyer persona).
Identifying opportunities to reach and engage with specific target audiences effectively can lead to more successful marketing campaigns. By tailoring messaging and connecting with desired customers, businesses can differentiate themselves and achieve a greater return on investment for their marketing efforts.
8. Analyse sales win rate
Tracking the competitor winning percentage involves calculating the ratio of successful deals in which a particular competitor participated to the total number of potential deals. This information is valuable for identifying emerging competitors who may take away market share. Moreover, it helps recognise which competitors are consistently difficult to beat and pinpoint areas where additional resources may be needed to improve sales performance. This type of research can also suggest how to retain one’s position in the market and help to develop own marketing strategy. Thus, competitive analysis enables companies to assess, monitor and respond to market activity.
What competitor analysis trends are their beyond 2023?
In conclusion, competitive analysis or market analysis is a strategic approach that entails researching and analysing the key competitors in a particular market or industry to learn more about their goods and sales, strengthen business strategies, gain market share, and outperform business rivals. As we enter the second quarter of 2023 and budgets are renewed, some companies are brimming with innovative ideas.
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Another article:
List of Basic Competitive Intelligence Actions to do
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Written by: Harshada Dive and developed by Octopus
