In the world of business and digital advertising, we are at constant war to get prospects’ attention. It is imperative for businesses to consistently develop tricks that help them take the lead from their competitors and become an industry leader. By understanding your market competition, you can quickly boost your business and differentiate your business from your competition.
In today’s blog, we will look at a few effective techniques you can use to identify your direct competitors. However, before we do that, you first need to understand what direct competition means.
What is direct competition?
Direct competition is a type of market competition where multiple businesses compete for similar products or services within the same target market to convert as many potential customers as possible. For example, Bing, Yahoo, and Google search compete in the online search engine market. If you wish to grow your business successfully, you need to understand who your direct competition is. The influence of your direct competitors’ is an unseen yet ever-present element that will impact your business. They will compete with your brand and try their best to get your customer’s attention. Nevertheless, it can get challenging for firms to distinguish who is and isn’t their competition correctly. So, we have mentioned three simple tips that can help your business identify direct competitors:
Three tips you can identify direct competition
Market research
Look at your market and evaluate what companies are selling to compete with yours. Ask your sales team to find out which companies they see come up often during their sales process. This way, you will be able to take a closer look at those businesses, their services and products, and marketing efforts to come up with a strategy to outperform them.
Customer feedback
Always remember that your customers are the key to figuring out who your direct competitors are. Using techniques like a customer survey after a purchase or a feedback form with an incentive, you can ask your customers which brands they were considering alongside yours and why. This way, you can ensure you know who you are precisely up against.
Online communities’ behavior
The chances are that your potential customers will seek some advice and recommendations on social media apps and sites or public forums such as Reddit and Quora. When it comes to social media, Twitter Analytics and Facebook Audience Insights can help you gain valuable insights into which brands your target audience follows on these social networks. If you notice these brands offer similar services to yours, it is worth considering them as your potential competitors.
By taking note of these conversations, you will be able to identify your market competitors better. Additionally, according to a survey, both Gen Z and Millennials feel that online recommendations for anyone in their social circle significantly influence their buying decisions.
Takeaway
You need to approach competitive analysis strategically if you wish to achieve your desired results. As long as you keep your competition in check, you can position yourself better in the market.
