What Is The Importance Of Competitive Analysis?
If you ask what is the importance of competitive analysis, let’s just say, competition in business is kind of a good thing. A competitor pushes you to achieve more in your business. It drives you to think outside the box and make more innovation. Also, we get to know about our weaknesses and strength. So, competitive analysis is a very good practice. Especially, in the area of digital marketing, competitive analysis is very important.
Why competitive Analysis?
To compare the tactics and methods of marketing done by you and your competitor. We can find new opportunities and methods to beat your competitor. Find out the best and worst part of your competitor. And thus, improve your side. It defines your position in the market.
Let us discuss how it is done.
Competitive analysis can be done very simply. It is done by using some key performance indicators. The key metrics include the following
Choose the right metrics
Always find out the right parameters to compare with your competitors so that it can give you the exact results.
Tracking the follower growth of your competitor in digital media will help you to understand the area of excellence of your competitor. It also helps to compare the nature of the audience, gender, age, and location of you and your competitor. Try to figure out the attractive factor of your competition with the audience.
By understanding the competitor, you can post less or more to establish your brand. Find out your key points for branding your product. Find out at which time your competitors are active on social media. Also, check if your audiences are active enough in those times and schedule your tweets.
Content engagement metrics show you the impact of your posts and tweets on social media. It analyses what kind of content does the audience interacts with more for both you and your competitor.
Choose the right marketing medium
Select the best platforms to market your business. This relies on the nature of your audience. But there are certain things which are always welcome to do irrespective of your audience nature, age, etc. Always find multiple choices to boost your marketing like social media, off-page, on-page, etc. List of marketing medium that can be used are;
Select the right competitors
Apart from all the above, the real fact is to choose the right competitor to analyze. If your judgment is wrong in choosing your competitor, then things will not go as they should. And due to ignorance, you will continuously work with your findings. Finally, the results will be a big failure. So, be sure about selecting your competitor.
Prepare a competitive Analysis report
After doing all this, track and prepare an analysis report with suitable demographics. This will be much easier for you to understand about your competitor. The report must be a comparison between you and your competitor.
As I said already, competitive analysis is really important not for sustainability but for growth and improvements.