Competitor analysis is essential for any entrepreneur who works in e-commerce.
Various aspects must be assessed and monitored, such as their presence on social networks, communication with customers and the marketing strategies implemented.
But what exactly is competition analysis? Let’s see it together!
Why is it important to analyze the competition?
The analysis consists in evaluating the strengths and weaknesses of competitors (current and potential) and allows you to discover any opportunity and/or threat.
This way you can adapt your marketing strategy to anticipate the moves of your competitors or to adapt to their moves.
How is the analysis performed?
1. Who are your competitors?
This may seem like a formality, but you don’t have to consider just your direct competitors.
The main competitor categories are:
- direct: those who offer the same product as you
- indirect: those who have products that are different from yours, but which have the same function
- competitors who sell alternative products that are part of the same market niche
For example, you could analyze three of your direct competitors every day, the indirect ones once a week and once a month the alternative competitors, to always have a complete picture.
2. What to monitor?
You definitely need to have in mind which parameters are most important to you, for example:
- marketing campaigns
Find out when your competitors launch new products or campaigns and if they are successful.
- presence on social media
Analyze what social channels are the most effective and which posts generate the most interactions with the public.
- customer care
Check how they reach out to the public and what approach they use to solve problems.
For example, check if they have changed the design of their website or added sections or what impact their landing page has.
Find out if they are collaborating with influencers, an effective way to increase word of mouth.
3. What are the most suitable tools?
To make things easier for you, you need to rely on tools, for example:
- Tracking tools
They allow you to find out what is being said about your competitors online.
- Social listening tools
If you are interested in the social aspect, these tools allow you to monitor the performance of your competitors on social media.
- SEO analysis tools
Keeping track of the keywords used by competitors is essential for your analysis to be complete.
How to do online competitor analysis?
Here, in summary, are the factors to keep in mind to analyze your competitors:
- Who are your competitors?
- What products do your competitors sell?
- What are the strengths and weaknesses of your competitors?
- What are their strategies?
- What market are you in?
At this point, you should have understood how important it is to analyze your competitors for the success of your business.
With good analysis and the right tools, you will beat the competition and success will be guaranteed!
We really hope these tips can be useful for your online business with BDroppy!