In today’s competitive business landscape, understanding your competitors is vital for the success of your own company. By analyzing their strategies, pricing, and market positioning, you can gain valuable insights that will help you make informed decisions and stay ahead. In this blog post, we present the ultimate competitor checklist to understand your competition and benchmark yourself accordingly.
7-Point checklist to understand competitors
Conduct Competitor Analysis
The first point of our competitor checklist is to identify your key competitors in the market. Analyze their strengths, weaknesses, target audience, product offerings, and marketing strategies. This will provide you with a comprehensive understanding of the competitive landscape. Use our Competitor Analyzer Tool to get started with your analysis!
Monitor Pricing
Price monitoring is crucial for staying competitive. Collect data on your competitors’ pricing and identify the price leader in your industry. This will give you a benchmark to set your own pricing levels and determine the room you have to adjust your prices. Make sure to calculate price indices so that you can compare your products prices to your competitor’s easily.
Track Price Changes
Monitor and analyze the frequency and timing of price changes by your competitors. Identify which competitors are the first to initiate price changes. This knowledge will help you understand the players who ignite pricing processes, particularly if they are aggressive in their pricing strategies. By recognizing the patterns of price changes, you can develop effective strategies to react and stay competitive.
Analyze Follower Competitors
Examine which competitors tend to follow your pricing strategies. This analysis will provide insights into the players who are reactive to your pricing decisions and how quickly they adjust their prices. For instance, if their prices always change right after yours have changed, they may follow your prices. Additionally, pay attention to the specific products they follow. Understanding these dynamics can help you create a competitive advantage by strategically pricing your products and avoiding a downward spiral in a price-driven market.
Like what you’re reading?
Take our free “Understanding Your Competition” course in our Pricing Academy!
Study Product Offerings
Evaluate your competitors’ product offerings and identify any gaps or unique features that differentiate them from your own. This analysis will enable you to identify areas where you can improve your product or create a competitive edge by addressing unmet customer needs.
Analyze Marketing and Advertising Strategies
Examine your competitors’ marketing and advertising campaigns. Look for their messaging, target audience, channels, and tactics. Aim to understand their positioning in the market and identify areas where you can differentiate your own brand.
Monitor Online Presence
Keep a close eye on your competitors’ online presence, including their websites, social media profiles, and customer reviews. Analyze their online engagement, customer feedback, and overall reputation. This information will help you understand how customers perceive your competitors and identify opportunities to enhance your own online presence. Remember, the point is not copying, but understanding the competitors to be able to benchmark yourself so that you are not missing out on clear opportunities in the market.
Stay Updated with Industry News
As the last suggestion of our competitor checklist, we urge you to stay informed about the latest industry news, trends, and innovations. This will help you anticipate market changes, identify emerging competitors, and adapt your strategies accordingly. The earlier you adopt, the more chances you have to reach a leading position in the market.
Conclusion
Understanding your competitors is crucial for maintaining a competitive edge in today’s fast-paced business environment. By following this competitor checklist, you can gain valuable insights into your competitors’ pricing, strategies, and market positioning. It is easier to use price monitoring software to decrease the manual work burden, so if you don’t have a software or tool in use yet, we highly suggest you get to know the pricing software market as fast as possible.
Armed with this knowledge, you will be well-equipped to benchmark yourself effectively, identify areas for improvement, and make informed decisions that will propel your business forward. Remember; continuous competitor analysis and adaptation are key to success in any industry.