For online businesses today, collecting data from the actual customer is the key to making a good decision. Gilad Krein, a successful businessman, and digital nomad, thinks a business’s success depends on market and competitor research.
Read on to learn more about market and competitive research for your online business.
Firstly, what is competitive market research?
Market research is the approach or action by which the product managers collect information about market drivers and customers’ needs. To help in growing your online business, you must conduct market research to gather data from current customers.
The term competitive analysis is part of competitive research. When you examine your competitor, you use market research techniques and ideas to determine what your competitor is doing today.
By accessing these ideas, you can gain insight into their plans.
For several reasons, market research techniques are essential for establishing an online business:
- You can use it to analyse the strengths and weaknesses of your competitors.
- Objective and profile of competitors
- It helps to look out for past, present, and future strategies
- They help to establish benchmarks.
- You can consider them to identify and fill crucial gaps in your business.
These are the top reasons you should go or adopt the techniques of market research and competitive analysis techniques.
What are the steps to competitive market research, according to Gilad Krein
Identify your real competitor
If you can find your competitor, then you can compare data accurately. The things which work in a business like yours may not work for your brand.
In such situations, what can you do? Here you can classify your competitors mainly in two ways – Indirect and Direct.
The term direct competitors belong to the businesses that offer products or services that may pass as a substitute for yours and operate in your same geographic area.
Contrarily, an indirect competitor offers products or services that are not the same but could satisfy to solve the same problem or same customer need.
These terms may seem to be simple, but these two terms are often misused. When you are going to compare your brand, you should only focus on your direct competitors.
Examine how your competitors advertise their products
Examine your competitor’s website is the best way to analyse their marketing efforts. To know the adverting process of your competitor, you need to get the answer to the following questions:
- Are they updating the blog regularly on their website?
- Are they posting videos or webinars?
- Do they have any media kit?
- Do they use infographics and cartoons in their advertising campaign?
Try to figure out what price your competitors offer
There are several factors to consider when you price your product appropriately. You first need to consider how much your competitors charge for a similar product.
Here are some factors to consider:
- Offer free shipping perks to your customers – Nowadays, people are attracted to sellers or companies offering several perks. These perks can be of any type, whether free shipping or an additional discount on products.
- Learn the technology stack by your customer – Knowing the technologies stacked by your competitors can be very important for your business if you become successful. It can help lower the friction and boost the momentum in your organization.
- Try to execute SWOT analysis – This analysis contains notes of your competitors’ weaknesses, opportunities, and strengths to assess the overall grade.
Gilad Krein’s marketing research strategies you should keep in mind for your online business
Identify your competitors for your online business
Instead of making a list of your competitors, try to figure out where the customer will turn if they don’t buy from your company. Studying competitors’ sales practices and results is easy and effective, and here you can survey the existing customer and what they consider before purchasing the product.
Collect background information of your competitors
After making the list of your competitors to research, start gathering all information related to their businesses. Try to examine basic things first and from there, build your way. You can collect the information from company websites, news articles, and social media pages.
Concentrate on finding the following details:
- Company history
- Company size
- Products or services offered.
You can analyse how your competitor’s market or advertise their products by finding out these details.
Examine your competitor’s content engagement
A company is just a hall of four walls without its customers. Getting an idea of whom your competitors sell to will tell you a lot about their business.
To attract the targeted customer for any business, follow the below-mentioned tips:
- Read the mission statement of your competitor
- Try to figure out what kind of messaging they are spreading
- Track the people with whom they are interacting
Based on this information, construct a profile of the people your competitor is trying to reach.
Also, try to focus on the four Ps –
By examining all these factors, you can find how they promote marketing content.
Gilad Krein’s final thoughts – Make time for a through market and competitive research
Competitive research initially seems daunting, but it’s essential to running a successful business. You may find that your research isn’t as difficult as you thought when you use the right tools.
Don’t forget to include market research and competitive analysis when writing your business plan. Continue researching by reading industry publications and local news and attending business events. Keep notes on what is happening in your industry if a new competitor enters the market.
Gilad Krein emphasizes that understanding your competitors is just as crucial for success as understanding your customers. You should monitor your competitors’ online activity to deliver excellent value to your customers.