Guide To Carrying Out Competitive Research The Right Way

 (photo credit: INGIMAGE)
(photo credit: INGIMAGE)

For a business to thrive in today's competitive ecosystem, it is incredibly important to carry out proper competitive research.

Running a business on a monopoly track today is as good as living in a fool's paradise. Now, as a company, you should know what your competitors are doing - to assess your performance and preserve your relevance. You can try to utilize the gleaned information and implement it in your business; this is how company research or competitive analysis is done in the right way. 

What is at the core of competitive research? 

Competitive research is fruitful only when you have a very good understanding of the industry, can weigh the merits and demerits of the various procedures, and have the capability to serve with more effective results. With all the fundamentals in the right place, you can build your personal market space using competitive research. 

Let us now look at some of the crucial advantages of doing competitive research. 

  • Understanding market demands accurately - You will get a clear idea of the trends that are in vogue in the market. The trends will be handy to decide what can happen in the future. And believe it or not, being able to predict future trends is a boon for any company. 
  • A solid plan for the business - When you get the specifics of your competitors - their activities, client reviews, and performance in the market, trends, and more, you can synergize all the specifics and devise a robust strategy for your business. 
  • Identifying the gaps - There are gaps in the market, and you will not understand it until and unless you do competitive research. The gaps include; some key spaces that the competitors have paid little attention to, and with a little analysis on your own, you can derive something positive for your business from it. Milking the opportunities, filling in the gaps that need attention, and exploring the gaps will make your position sound and unique in the marketplace. 
  • Improve marketing processes - The utility of a product or a service for a customer lies in the fact that it aims at making their lives easier. Now, if the customers opt for a service or product from your competitors, then there is a lot to analyze. The first thing is your products or services are not as good as your competitor’s. You need to pay attention to the specifications, and by analyzing the vital aspects, you will have the opportunity to enhance your products and services. So that your customers don’t go elsewhere but to you! You can as well do a little tweaking here and there to get back your lost customers. 

How to implement competitive research?

  • Pinpoint your competitors - Multiple competitors in a marketplace are a common thing you will invariably face. In this dog-eat-dog scenario, businesses have only one crucial point in mind; how to take control of a large part of the marketplace. But, competitive research is not as complex as it looks like. The simple online analysis will reveal the names of all the key players serving the target audience that you have in mind. You can look at your competitor's social media footprint, online presence, reviews, online communities, and more to carry out intensive research. While carrying out the testing; try to build a counter-strategy as strong as iron, based on extensive data. 
  • Analyze the systems and procedures - You will have to scrutinize your competitors’ websites. Try to understand how the products have been displayed, the product descriptions are written, the prices, call-to-action strategy, social-media positioning, photographs, and how the blogs section is being managed. The scrutiny further might include taking a detailed look at the customer service. Furthermore, you need to discern; how good the user interface is or, how good the website is optimized for different digital devices. The next thing to understand is how they are promoting their brand, their principles, approaches, displaying the banners for marketing, and so on.  
  • Divide the competitors into different categories - You have to divide your competitors into different categories because some will be your direct competitors. However, this is necessary to remain focused. To start with, you have to pay attention to competitors who are directly invading your space. The other category will have competitors from varied fields who offer ancillary products or services that are meant for an entirely different target audience. 
  • Understand how market positioning plans work for them - The pricing has to be correct, otherwise problems will crop up. The market is highly competitive so getting the price right is mandatory. Understand the pricing of your competitors will help you to devise a pricing strategy of your own. You have to also understand a buyer's sentiment. When a buyer is looking at your product or service, you have to keep in mind that your products or services must have something extra apart from the essential specifications. In this way, you will be able to cash in more money because buyers are willing to pay a few extra bucks for something amazing. 
  • Get your shipping policies straight. A rational shipping cost can take your sales to new heights, and buyers will seldom abandon their carts. Shipping cost is essential because many loyal customers back out before purchasing a product just because of exorbitant shipping costs. Some companies are using personalized messages, discount coupons, and more to enhance the customer-brand relationship. So, you have to pay attention to all the details. 
  • Identifying strengths and weaknesses - Look at the reviews and from there try to understand your competitors’ strengths and weaknesses. This way, you will get a vivid idea of how the brands are performing or where they are failing their customers. Remember, this will help you bridge the gaps and fine-tune your products or services by understanding what the customers are looking for. You want to be a viable alternative.  

Done right, competitive research can help you understand how your competitors are adapting to the ever-changing market landscape by incorporating flexible changes and tactics. Here lies the key to fine-tuning your business and sailing smoothly.