Today’s market is very volatile, nothing is constant anymore. Customers buy from you and tomorrow they change their mind and turn to your competitor. It is vital to fight for your customers and a business constantly needs to innovate how to keep them also not forgetting to attract the new ones. There are very few virgin customers on the market, those that have never bought from you nor from you competitor. Their percentage is so minimal after all that they do not deserve so much attention especially if your reputation speaks for your quality and is thus attract sufficiently new buyers. It is a huge mistake to disregard a huge amount of customers that could be yours – yes, those that are buying from your competitor.
Businesses must stay original, keep on learning and it is vital to upkeep constant excellence in performance. And where best to learn than from the competitor?
If you will understand your competitors, you will better understand customers that you do not have. Knowing your competitor is a key to understanding your customers and their behaviour – why do they buy from you; and as importantly; why don’t they buy from you.
Best market strategies are to offence and defence – surprise your competitors and overwhelm your customers.
What shall I look for?
First of all understand the market size – who are the most important players and how important they are to your customers. There are different kind of competitors, direct and indirect. Understanding both of them will unseal the market potential and will give you a sight of the whole market horizon.
Next things are the pricing, positioning and customer service of your competitors. All important factors that deserve your attention.
So what are the tools to learn from competitor?
- Visit your competitor – go and explore their store, visit the office, send them an email, call their customer service, act as their customer
- Talk to your customers – it is amazing how much your customers know more about your competitor than you do, find out if your customers previously have used the services of your competitor and how did that go
- Take a look in the social media and internet – read reviews, look at the new products and services launch, see their blogs and company press, there is so much information available online
- Follow up yearly the progress – document the data and benchmark yourself to see yearly trends
Finding out the competitor’s strength and their weaknesses will definitely give you a new perspective. It will give you fresh ideas how to develop yourself in the eyes of your customers, it will give you tools to understand your market potential and customers deeper than ever before and re-evaluate your market position because in the end – it’s a key for better business.
Katrium offers its customers a set of tools to perform a realiable competitor analysis on yearly basis. Read more about our research services here.