In the digital business environment, the competition is quite fierce. There’s a new business every day, and keeping your head above the water can be quite a challenge.
Naturally, knowing what your competitors are up to is paramount if you want to stay ahead of the curve. If you still don’t know your main competitors and don’t keep track of what they are doing, it’s time to get on board and take your business to the next level.
Keeping an eye on your competition offers quite a few benefits for your business, such as driving more traffic to your website, making your business more customer-centric, increasing the satisfaction of your customers, etc. Let’s discuss why you should pay close attention to your competitors to improve every aspect of your business.
You can get insights into the latest industry trends
One of the most important reasons to track and monitor your competitors is to stay on top of the industry and marketing trends. Aside from finding out about the most lucrative investment opportunities and most effective marketing strategies, coping with the latest trends allows your business to feel the pulse of the local and global market and stay relevant.
There could be a new marketing tool that your competitors are exploiting or a new channel of communication that their consumers prefer at the moment. By knowing about these things, you get a chance to attract more customers, retain the ones you already have, and keep your products and services up-to-date.
It helps create your USP
USP stands for unique selling point and refers to unique features that only your company offers exclusively. It could be anything from a unique solution to the main problem, a brand message, or unique merchandise you plan to launch for a limited edition.
A USP helps your company find new business opportunities, build a meaningful relationship with your customers, increase their loyalty, generate more leads, drive more sales and traffic to your website, and so much more.
For example, let’s say that you plan to launch unique merchandise with the main goal to increase the satisfaction of your customers by offering them something new and innovative that your competitors can’t offer.
Merchandising is vital to achieving this goal. According to Fast Simon, a company that creates merchandising strategies, merchandising is all about knowing your customer. You’ll need to understand who they are, what they want, and what makes them buy in order to give them the best shopping experience possible, completely tailored to them, ensuring they come back again and again.
Launching a new and exclusive product can help attract a wider target audience, expand your product catalog, generate more traffic, and increase your conversion rates, among many other things. By monitoring your competitors, you can quickly identify and bridge gaps in the market and make your company stand out in your business niche.
You can adjust your pricing to make it more competitive
Doing a thorough competitor analysis also allows you to adjust your pricing according to the industry standard and ensure it isn’t too low or too high. Competitive pricing can help your business in two important ways:
- It will help you attract a broader target audience.
- It will allow you to avoid the risk of undervaluing your business and missing out on good opportunities to bring in more revenues.
There is also one more important reason why you should constantly monitor your competitors – to find out what kind of promotional deals they are offering. You can use that insight to create better deals and offers for your target audience and differentiate yourself from other similar brands in your industry.
You can predict your competitors moves
Keeping an eye on your competitors is an excellent way to predict their moves and find a way to use that knowledge to your advantage.
Creating special offers, unique bundles of products/services, innovative marketing and advertising strategies – these are all ways of staying ahead of your competitors. That way, you get to tap into their target audiences, improve your brand reputation, and make your business more authoritative and trustworthy.
Keeping an eye on your competitors isn’t about stealing their ideas or mimicking their actions. It’s rather about finding effective ways of catering to your customers and providing them with products and services of real value that will help them solve their problems.
On the other hand, if some of the potential prospects used competitor products or services before, it will be much easier to cater to their preferences and convert them to loyal consumers.