How to set yourself apart & achieve success
Competitor analysis is a key process of any successful marketing strategy.
For startups entering the market, understanding how to position themselves against alternatives is paramount. With the right approach, you can confidently differentiate your visual identity and messaging and uncover opportunities that allow you to outshine the competition while learning from their successes and where they’re falling short.
How to conduct a competitor analysis?
Step 1: Know your audience
To start, the most important thing you need to know is who your target audience is. They’re your guiding star and understanding their goals (also known as jobs-to-be-done), preferences and pain points is the first step to success.
Step 2: Define your direct and indirect competitors
Direct competitors are those who’re offering the same or similar product to you and going after the same audience. An indirect competitor may offer a different product or service, but still satisfy the same audience goals or jobs-to-be-done.
Beware of an often overlooked space - the inertia of your potential customers who’re content with the status quo. Your audience who ‘do nothing’ are often the toughest because the switching cost is so high and increasingly challenging.
Aim to have 5-10 competitors.
Step 3: Explore their digital footprint
Now it’s time to go digging. Visit their websites, browse their social media channels and carefully examine customer reviews scattered across the web. Customer reviews can be found in various places, such as G2, Capterra and Trustpilot. During this process, you should aim to pull out insights into their branding, messaging and customer experiences.
To organise this information effectively, we recommend using Miro, a visual collaboration platform that facilitates easy team editing and viewing. However, of course, feel free to use any tool that suits your preferences for mapping this out.
Your primary objective is to uncover the unique selling points they emphasise in their messaging and how they are perceived by their customers. What is it about each that creates value for the audience?
Understanding how they attract customers is vital for positioning your brand and effectively showcasing your distinctive competitive advantages.
Step 4: Uncover their marketing strategies
Understanding how your competitors acquire and retain customers is crucial. Identify the marketing channels they use, both organic and paid. Check out if they use paid ads and can uncover key information as it is often the testing ground of all sorts of goodies, like messaging.
Top tip: It’s easier than ever to check out what ads your competitors are running. Have nosey:
LinkedIn Ads: Go to their company page, navigate to their posts then the ‘Ads’ tab. You’ll see every ad the brand is running on the platform.
Now you have a sense of where (or not) they are spending their money you may feel inspired to fine-tune your own marketing efforts and discover potential untapped areas.
But you should note, just because your competitor is doing something, it doesn't mean it’s the right approach for you. Don’t waste money on performance channels just because they’re doing it. Before you throw money on paid, make sure it is right for you at this time in your marketing journey.
Step 5: Map out your insights
Create a table, one for direct and another for indirect competitors, and list out each competitor with these rows.
Pull: why do customers choose them?
Push: what are the shortcomings/ why don’t people like them?
Pricing: compare their product or service pricing and feature
Your company advantage: highlight what sets your company apart
Step 6: Create your value curve
A value curve is a visual representation of your position in the market.
Create a spreadsheet, list the key attributes associated with competitive products from your research and rank your competitors accordingly on a scale from 1 to 10. Mapping yourself out vs. your competitors will help you identify potential areas of opportunity.
Check our detailed guide on creating an effective value curve.
Key Takeaways:
👉 You must note, conducting a competitor analysis shouldn’t be done in isolation because using user data from interviews and surveys will add to the depth of your understanding. The best way to look at the space is through your customer’s eyes, as they are the ones weighing up alternatives and making the purchase decision.
👉 Competitor analysis is vital to fully understand what’s going on in your audience's mind when they consider your solution. It can help you identify what you are competing for their attention and where the opportunities are to stand out and differentiate effectively.
👉 Learn from competitors’ best practices and pitfalls to fine-tune your marketing efforts and uncover untapped opportunities.
