Mastering the art of competitor analysis is a must for startup owners and small business owners keen on leveling up their digital marketing strategies. In today's post, we'll walk you through the process of conducting a comprehensive competitor analysis, one step at a time.
Competitor analysis involves understanding who your business rivals are, what they do, and the outcomes they achieve. With these insights, you can craft an effective marketing strategy that aligns with your brand, sets you apart from the competition, and effectively engages your target audience.
Before you begin, make sure to familiarize yourself with your product, its unique selling points, and how it is positioned in the market. A deep understanding of your product is essential in order to assess how it stacks up against the competition.
Example: Let's assume you own a small business that sells organic skincare products. Your unique selling point could be that your products are handmade, chemical-free, and cater to all skin types.
The next step is to identify who your competitors are. You can do this by searching relevant keywords on search engines and social media platforms like Google, Instagram, LinkedIn, and Facebook. The goal is to find other businesses in your niche that offer similar products or services.
Example: Using relevant keywords like "organic skincare," "natural skincare products," or "handmade skincare products," you can identify your competitors through search engines and social media platforms.
Investigate the full customer journey, starting from where the ads are placed to the end destination - typically the product or sales page. Examine their positioning, unique selling propositions, and main benefits.
Example: A competitor might be advertising a special offer: a free face mask with every purchase. Their ad may direct customers to a product page with a bundled offer.
Look closely at the design and text of your competitor's ads. Consider elements such as the color scheme, visuals, font styles, tone of voice, text structure, and length. Who is their target audience? Does it resonate with your customer persona?
Example: The competitor’s ad might be using bright, natural colors to evoke a sense of freshness. The ad copy could be short and compelling, emphasizing the benefits of natural skincare.
Capture the key features of each competitor in a detailed table. You should include their call-to-action (CTA) text, primary ad text, translations if necessary, links to the ads, and any visual elements like images or videos.
Example: Capture these details in a table - the competitor's name, the call-to-action (CTA) in their ad ("Shop now"), the main text of their ad ("Get a free face mask with every purchase"), links to the ads, and any visuals used.
In the final columns of your table, record any useful information about your competitors and their websites. Also, note down the insights from their ads that can be useful in your marketing strategy.
Example: Write down any useful information about your competitors, their websites, and what can be gleaned from their strategies. Maybe you’ve noticed that they emphasize sustainability and use a specific color scheme across all their visuals.
Now comes the most exciting part: using these insights to inform your own digital marketing strategy. Remember, competitor analysis is not a one-off process, but a continuous cycle of learning and adapting.
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Peruse our success stories to discover how we've helped businesses like yours reach their marketing goals. Or why not book a demo to see how we can drive the results you’ve been searching for?
Remember: This guide is about learning from your competitors, not imitating them. It's about discerning what's working in your industry and how you can differentiate your brand for maximum impact. Your ultimate aim should always be to deliver something better and more personalized to your customers.
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