There is no denying that the business world is highly competitive. This stiff competition is partly responsible for why 50% of American businesses fail in their first five years. Consequently, it is prudent to know and understand your competitors to learn customer demands, adapt quickly to market changes, and make better business decisions that strengthen your brand’s market position. Fortunately, understanding your competitors is easier in this age where information is abundant. Here’s how your business can better understand its competitors.
1. Attend industry events
Many entrepreneurs attend industry events to network with potential business partners, customers, and investors. However, these events are also an underrated way to better understand your competitors. A lot of valuable information comes to light anytime those in the same sector meet at industry events, thanks to exhibit booths and informational sessions. Moreover, these events are a great way to simultaneously monitor numerous competitors. For example, you can leave an industry event with in-depth information about five or more competitors. This knowledge may have taken you several days or weeks to compile.
2. Speak to your customers
Your customers are a major source of competitor information, but many businesses surprisingly do not seek their insights when studying rivals. You can learn a lot about how your competitors operate by conducting surveys to get answers from current customers who have once patronized them. These surveys should determine why they switched to your brand instead of sticking with your rivals. Similarly, reach out to former clients and ask why they ditched your brand for your competition. If you are opening a new business, you can ask your target audience for useful insights about competitors since you won’t yet have clients. For example, let’s assume you want to launch a fashion brand. Interacting with your target audience can help you discover particular market segments that your rivals have overlooked. Then, hire business plan writers for your idea who can write a detailed competitive analysis section that specifies how your brand can fill the gap in the market.
3. Check their websites regularly
Websites are often the first ports of call for anyone who wishes to learn more about businesses from multiple sources. These sites typically contain essential business information, events, product changes, and other relevant updates. The Small Business Administration estimates that 64% of American small businesses have websites, so there is a high chance that your competitor has one too. Consequently, check out your competitors’ websites to see what they are up to. Monitoring your rivals’ websites can give you various insights you can use to boost the customer experience for your site. For instance, you can create better blog posts, product descriptions, and contact information to make your website a more helpful alternative for your target audience.
4. Monitor their social media presence
Review42 estimates that at least 91% of American businesses leverage social media platforms for marketing purposes. Therefore, social media is a great place to head to if you want information that can help you understand your competitors. You can monitor the types and frequency of their posts, the topics they speak about, and who engages their content. Additionally, you can gather general sentiments about your rivals from social media, which can help you hone your own social media strategy.
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