If you want to outperform your competition, you need to know what strategies they use, the campaigns they run, and how they attract leads to their business. A digital marketing competitor analysis is fundamental to your marketing success. Keep reading to learn more about digital marketing competitor analysis and see how our competitor analysis services can help your business grow.
You can consider a digital marketing competitor analysis an in-depth look at your competition. In this analysis, you identify your competitors and analyze their marketing process. During analysis, you look at your competitions’ strengths and weaknesses and how they compare to your own business, services, and products.
When you conduct a competitor analysis, you compare your company’s performance to your competition to help you improve your strategies.
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Direct competitors are typically the most dangerous since they’re essentially a carbon copy of your business in many ways.
Your direct competitors offer the same products and services as your company, and they also have the same target customer. You can even take it a step further and say that your direct competitors also have the same goals and work on a similar business model.
Your indirect competitors offer the same products and services as your company, but they likely have a different business model, or different business goals.
A good example of an indirect competitor would be a mom-and-pop candle shop competing with Yankee Candle.
This competition can still be dangerous, but if you focus on your target audience and your personal business goals, indirect competitors won’t stand in your way.
Replacement competitors offer products or services that could potentially replace the products and services you offer. So, if your products or services fail, and your customers want to try something different to accomplish their goal, they could rely on your replacement competitors.
A good example of this would be a book store versus a video game store. The book store is at risk of losing customers to a company that offers the latest and greatest video games.
Here’s how to make sure a competitor analysis is successful
Make sure that you’re looking to companies that are similar to you in terms of business size, target audience, and product offerings.
Going into a competitor analysis blind won’t be successful. Determine a few key metrics that could benefit your own strategy before beginning.
If the data you use is incorrect, your competitor analysis won’t be successful. We recommend using trusted tools like SEMRush or SpyFu.
To make the best use of your data, be sure to keep it organized.
Competitor analysis is a critical component of your business’s success. Here’s why you need digital marketing competitor analysis:
Conducting a competitor analysis for digital marketing is critical because it enables you to identify your competition. If you have a brick and mortar location, you may already know some of your local competitors, but they aren’t your only competitors online.
With a competitor analysis, you help your business identify companies that you’re competing against for customers. It gives you a starting point for identifying strategies that are working for your competition so you can figure out how to create more effective strategies for your own business.
Action item: Search products, services, topics, and more related to your brand and see what pops up in the search results. It will give you a good starting point for understanding your direct online competitors. So, for example, if you sell flowers, try searching “wedding flower shops” to see who pops up in search.
When you conduct a digital marketing competitor analysis, you can better understand your market. Not only can you identify direct competitors, but you can also identify indirect competitors that might be taking sales from your business.
So, for example, let’s say you own a coffee shop and sell freshly ground coffee in addition to serving fresh coffee drinks. You know that businesses like Starbucks and Dunkin’ are direct competitors to your business. But what about your indirect competitors?
Since you’re selling bags of coffee, grocery stores are an indirect competitor to your shop. While they sell an abundance of other goods, they still offer dozens of different ground coffee options, making them competition to your coffee shop. Even a local gas station could be considered competition for your business!
When you conduct a competitor analysis, you gain a better understanding of who’s in your market, so you can create more effective strategies to compete against them.
Action item: Create a list of businesses that are the same type of business as you (coffee shop, plumber, auto parts manufacturing company). Then, look at businesses that may offer similar products or services that can also be considered competition (grocery stores, general handymen) to help you compile a list of your competitors. From this list, you can map out your competition.
Just knowing your competition isn’t enough to help you drive better results. You need to know more about your competition so you can create a strategy that helps you outperform them.
When you conduct a competitor analysis, you can better understand the strengths and weaknesses of your competition. You’ll want to look at important components like pricing, product quality, and customer satisfaction.
When you know what your competition does well and where they fall short, you can use that knowledge to help mold your strategy. So, for example, if your competition falls short in the customer service department, you can make sure that you ramp up your customer service to give you a leg up on your competition.
Action item: Take your list of competitors and look at the key components listed above. Reviews are a great tool for you to use here because you can get a first-hand account of the company’s product quality and customer service. Analyzing these components can help you see where your competition excels and falls short, so you can compare that to your own company.
These are the top five tools that we recommend for performing a competitor analysis.
WebFX is a top digital marketing competitor analysis company that can help you analyze your competition and find opportunities to help your business grow. Let’s look at what you can expect from our competitor analysis services.
When you invest in competitor analysis for digital marketing, we’ll help you identify your competition. We’ll take an in-depth look at your industry to help you identify your biggest competitors. Our team will help you compile a list of companies that are the biggest threats to your business.
When you rely on WebFX for your digital marketing competitor analysis, we’ll conduct a SWOT analysis for you. SWOT stands for:
With our SWOT analysis, we help you look at what your competition does well and what they don’t do as well. We can help you take this information and compare it to your business’s strengths and weaknesses.
Additionally, we help you identify opportunities where your business can outrank your competitors. We’ll also identify any threats that could occur in your market.
At WebFX, our digital marketing competitor analysis services include access to our proprietary marketing software, MarketingCloudFX.
With MarketingCloudFX, you get access to CompetitorSpyFX. CompetitorSpyFX enables you to look at your competition and understand what you need to do to outrank and outperform against them. From comparing keywords to content, we’ll help you understand what your competition is doing so you can create a more impactful strategy.
When you do competitor analysis for digital marketing, you want to work with people who are experienced and will help you drive the best results. At WebFX, we have a team of over 250 experts that will help you conduct your competitor analysis.
Our skilled team of experts has been doing marketing for over 20 years. We’ve worked in 154 industries, so you can feel confident that we can help you become a standout in your industry.
Additionally, you’ll work with a team of ongoing learners that have read over 27,000 marketing books — we stay up to date on the latest trends in marketing to help your marketing strategy stay current, too.
When you hire a marketing company for your digital marketing competitor analysis, you want to ensure you’re working with a company that drives results. At WebFX, we know how to drive valuable results that help our clients grow their business.
Here are some results we’ve driven for our clients in the past five years:
We know how to drive results for our clients, and you can feel confident that we’ll drive results for your business, too.
When you partner with a digital marketing company, you want to ensure you’re working with a company that will produce work you love. A great way to garner the quality of work is to look at reviews and testimonials.
At WebFX, we have a client satisfaction score of 91% — that’s 488% higher than the national average.
Want to know what it’s like to partner with us? Check out our 550+ client testimonials that attest to the excellent work we do for our clients!
By conducting a competitor analysis, your business will better understand your competition, so that you can have the best chance of outperforming them. If you’re ready to start analyzing your competition, WebFX is here to help.
We have over 20 years of experience helping people improve their marketing tactics to outrank their competitors. You can feel confident that our team of experts can help you develop a digital marketing plan that drives results.
Ready to get started? Contact us online or call us today at 888-601-5359 to speak with a strategist about our competitor analysis services!