Although online retailers may not want to admit it, competition is a good thing. It tells us that what we’re selling is in demand and that, with the right strategies, we have the potential to snag more of the market share away from our competitors.
For this to happen, you need more than just a deep understanding of your own business. By gathering competitive intelligence and analyzing the data of your peers, you can acquire valuable insight that allows you to outperform them all.
You know how critical your own store’s data is to growing your business. Now, imagine what you could achieve with the data of your competitors.
Competitive Analysis—Turning Insight into Opportunities
Data is often the driving force behind our most successful eCommerce strategies. We analyze our own data for actionable insight—why not use our competitor’s data to do the same?
By conducting a competitive analysis, you can uncover the following opportunities for your online business:
1. Capitalize on Successful Competitor Strategies
When you take the time to evaluate your rival’s marketing strategies, you can identify which ones were successful and use them to further your own campaigns. Likewise, you can skip the bad marketing techniques so that you avoid making the same costly mistake as your competitors.
2. Anticipate Trends in Your Industry
If you want to be thought of as a leader in your niche, you need to be on the cusp of new trends in your industry. Conducting a competitive analysis allows you to spot new market trends early by analyzing consumer search and purchasing behavior across the board. It can also help you proactively identify incoming competitors for monitoring in the future.
3. Capture New Customers and Keep Existing Ones
Analyzing competitor data helps marketers when it comes to customer acquisition and retention. Competitor analysis allows you to identify new markets and potential customers that you might not have noticed before, giving you the opportunity to market to new audiences and bring in more customers.
At the same time, a deeper understanding of the competition can help you improve the customer experience for your existing customers, making them even more loyal and profitable.
4. Increase Your Marketing ROI
Want to get the most out of your marketing strategies this year? Gathering competitive intelligence is key to making your marketing budget go further. Once you know what the competition has to offer, you can develop strategies that drive consumers to your eCommerce site.
5. Boost SEO Standing
Increasing your online visibility is necessary if you want consumers to find your products. A thorough competitive analysis will include your rival’s SEO strategies—from backlinks to the keywords they are targeting.
With this knowledge, you can estimate how long it will take to surpass them in search rankings. It will also save you time and money by evaluating which keywords are worth bidding on to outrank your competitors.
6. Improve Products and Services
Competition generally benefits the consumer because companies are vying for consumer attention by offering the best prices and products. Paying close attention to which products are flying off your competitor’s shelves can give you a better understanding of what consumers want in a product. Use this knowledge to create a superior product, and both you and your customers will benefit in the end.
Get Started with Competitive Analysis
We know that most eCommerce business owners are extremely busy, which is why we have made competitive analysis easy with our free eCommerce Scorecard. With the Springbot Scorecard, you can see how your key metrics stack up against peers in your industry through our clean, detailed reports.
These reports also generate recommendations based off your data so that you know exactly what your next plan of action should be. Couldn’t be easier, right? If you have any questions, feel free to contact our team at Springbot.
Want to learn more about using your competition’s performance data to drive your strategy? Save your seat for our upcoming webinar, “Keeping up with the Joneses: Using Your Competitors’ Performance to Your Advantage”!