You want to study how the current digital solutions address the needs of your target customers to see if there is already a marketplace for what you’re trying to create.
Good market research on the competition is crucial for any business in order to be competitive and understand what works and what doesn’t. This type of research provides firsthand knowledge of the good and bad user experiences provided by your competitors. If done thoroughly, it can also provide valuable insight into current trends and outdated manifestations of mental models. Additionally, it will help your team learn about the competitors, their best practices for design, and what types of customer segments use their products. However, before you can gain any of these insights, you first need to collect the data.
The most efficient way to do a comprehensive competitive analysis, in my opinion, is to collect all of the data in a matrix. This is the most obvious way to do a cross-comparison, and by using a spreadsheet, you can methodically collect data and not miss anything while you are researching. The matrix will help keep track of everything that needs to be compared. Once it is complete, you can rationalize your position with a cogent understanding of numerous qualitative and quantitative data points.
I prefer using Google spreadsheets to Excel because it is free, cloud-based, and easily accessible to more people. This way, everyone has access to the most up-to-date research and I avoid having people give me blank stares during important discussions.
The goal is to create a competitive advantage. The market research will show what the competitors do well and where there are gaps. Value Innovation, can create a plan to improve the user experience in those areas.
If you have good research to start with, you will be able to produce good analysis. This may seem obvious, but a lot of decisions are made without looking carefully at all the available information. As strategists, we need to help our clients use market research to make decisions that are based on knowledge rather than guesswork.
Understanding the Meaning of Competition
To start analyzing the competition, we need to first agree on the boundaries of the market. Imagine that there is a big circle in the air in front of you. Inside the circle are people who have regular access to the Internet. Anyone outside of the circle is not part of the market that we are focusing on.
As digital product makers, you serve and dominate the Internet marketplace. The Internet is not only your marketplace; it’s your distribution medium. You and your team create for, deliver products to, interact with, and acquire more users than any other medium through this digital highway. This is why the Internet is far more powerful than traditional mediums like television and radio.
The marketplace for your product includes all of your existing and future customers, who can be of any age and paying or nonpaying. Your competitors in this space are companies that offer similar products, which can cut into your share of the potential market.
Even though there are more than 7 billion people in the world, not all of them are customers. If you know this, it will be easy to find who your competition is.
Types of Competitors
A competitor is someone who is trying to achieve the same thing as you. If you’re just entering a market, there might not be anyone trying to do the exact same thing as you, but there are probably already people who are trying to do something similar.
Direct Competitors
Direct competitors are companies that offer the same or very similar products as your own company. This means that the customers you want are currently using a competitor’s product to solve their problem, even if it is not the best option.
Indirect Competitors
There are companies that offer similar value propositions to a different customer segment or that target your exact customer base without offering the same value proposition. For example, an indirect competitor’s primary service might not be your value proposition, but their secondary service is. Another possibility is that your customer base is using an aspect of an indirect competitor’s interface to solve the problem that our soon-to-be-amazing product will!
For example, Gilt is an indirect competitor of Paul’s because it offers a partial solution to the Busy Man customer segment. The Busy Man could avoid annoying salespeople and get access to top brands with Gilt. However, Gilt has a flash sales business model which means that single products are only on sale for a brief period (perhaps just 24 hours). This makes it possible for Gilt to offer its targeted customer base deep discounts, but Paul’s intended customer base doesn’t want that at the expense of flexibility and time. Time limits and curated selections would prevent Paul’s intended customers from putting together the personalized wardrobe of their dreams. So, although customers of the Busy Man could solve some of their big fashion needs with Gilt, it wouldn’t be their ideal solution.
Whether the competition is direct or indirect, the internet is a very competitive marketplace. It is important to consider all of your competitors when you are launching a product, as they can affect the success of your product. People often use products in ways that the creators did not anticipate, so it is important to do your research to make sure you have an edge over others in your industry.
Ideas to Deeply Engage Your Audience
To create interactive content that actively engages your audience, you need to find ways to drive customer satisfaction through engagement. This will help you produce high-quality content when growing your business and building an audience.
This article provides 31 ideas for interactive posts that you can use on Facebook to increase engagement with your readers.
Ask For Feedback
Customer feedback can help you innovate your products and come up with new ideas. To get new insights into how you can get new clients, retain them, or add more value to your products, ask your customers directly. Asking questions about your customers’ experiences can help you improve your customer service, learn about your competitors, or find new ways to showcase your strengths.
Here are some examples:
- Did our staff answer your questions in a friendly manner?
- What solution were you using before you found us?
- What would you tell your colleagues or friends about our products and services?
Shoot Product Photos
Product photos should only show the product, without any people or other objects. This will help potential customers imagine what they will be getting from your brand. Also, remember that producing high-quality photos from different angles is essential when highlighting its features.
Product photos that feature the product in use or in a context show the product in action. This can be done with action shots that show how the product is used. Including a person or thing in motion in the photo can make it more creative than a photo of the product alone, and is ideal for posting on social media, in blog posts, or in emails.
Trending Content
If you want to increase your reach and engagement, then you should post about trending topics. This is because people are always talking about these topics on social media, which means that your posts have a higher chance of appearing on news feeds.
Keeping an eye on what topics are popular on social media platforms can give you some great ideas for content that will help you start a conversation with your audience and make your business more visible. Try to focus on topics that are relevant to your business, as people are more likely to engage with and share content that they can relate to.
Behind-the-Scenes
People want to connect with other people, not brands. To make your brand more relatable and trustworthy, post behind-the-scenes content. This content can be personal, showing progress, or team-building. What makes your brand unique is what sets you apart from your competitors who offer the same services.
Tell a Great Story
If you want to connect with others and increase user engagement, share a compelling story that highlights your authenticity as a brand.
You could start by sharing the inspiring story of how your startup company got its start. Then, you could discuss the challenges a business owner may face along the way, and how to overcome them. Finally, you could inspire others by sharing how you successfully pivoted your business to find success.
Create Engaging Video Content
Users spend at least 100 million hours watching videos on Facebook and at least 88% more time on a website that has videos.
Different types of videos can engage the audience, and adding them to your social media marketing is always a good move. They can be live videos, tutorial videos, informational videos, behind-the-scenes videos, or user-generated videos.
If your company website has a blog, you can use the content ideas from the blog to create videos.
Branded Graphics
Images that contain a company logo and adhere to brand guidelines are more credible and essential for brand identity recognition in the industry.
If you want to make a lasting impression on your Facebook audience, make sure to have a suite of templates on hand that match the various types of content you post. This way, you’ll always be able to put your best foot forward, no matter what kind of post you’re sharing. Templates might include industry advice and tips, announcements, promotions, motivational quotes, or other branded graphics that support your business.
Infographics
Infographics can help people to better understand the presented information. It is important to keep them simple so that they can be easily understood by many people, especially your target audience.
If you’re posting an image on Facebook, include an interesting caption that communicates what is being said in the image. This will help your audience understand your idea quickly. Share your informational charts and graphs on Facebook to educate your audience on industry tips or trends.
Show Your Personality
To make your brand more exciting and appealing, give it a personality. If you can create a brand that resonates positively with your target market, you’ll be ahead of the competition.
Traits like being trustworthy and desirable can help create customer confidence. By using these traits, you can enable your brand to connect with consumers on a deeper level. Creating a personal connection with customers and establishing an emotional connection with them can help solidify your brand and give it credibility in the market.