Competition.
Every business has it, yet far too many business owners treat it like a dirty word. They don’t take the time to analyze the other businesses in their market and what they’re doing right or wrong.
This is a huge mistake, one that could destroy your business. The last thing you want is for your market to evolve without your business ever catching on, leaving you in your competition’s wake.
Previously, I’ve talked about the S.W.O.T. analysis—a powerful tool you should be using to evaluate your business’s strengths, weaknesses, opportunities, and threats.
Performing a S.W.O.T. Analysis on the competition can be just as impactful, so today, I’m going to show you how to research your competition’s strengths and weaknesses and use them to improve your own business. The more familiar you become with your competitors, the better positioned you’ll be to target and win over your ideal customer.
Ready to get started? Ask these 14 crucial questions:
1. Who are the top 3 competitors in your niche?
First, you need to know who your biggest competitors are so that you can work on closing the gap or creating distance between your businesses.
2. What are the top customer benefits your competitors offer that you don’t?
List the things that might attract customers and prospects to your competitors. Only include benefits that your company doesn’t currently provide.
3. What are your competitors’ greatest weaknesses?
List the opportunities that the competition isn’t capitalizing on. There are certain areas where my CPA firm can’t compete with other firms. Knowing this, we niched down even further so that they can’t compete on our turf.
4. What do you do better than your competitors?
Chances are that many of your products and services overlap with your competitors’ offerings. What sets you apart, if anything? What is your unique value proposition (USP)?
5. What do your competitors do better than you?
Time to be brutally honest. List out of the advantages your competitors currently have over your business.
6. What are the top 3 benefits your customers get from the areas where you outperform your competitors?
List the biggest reasons why your customers choose you over the competition. For example, our CPA firm provides tax planning and profit coaching—benefits that our competition doesn’t offer.
7. Perform a full analysis of your top 3 competitors. What makes them stand out?
Take a deep dive into your biggest competitors. Why are they competitors? Why do customers prefer them? What separates them from the rest of your market?
8. How would you describe your competitors’ service or performance?
Have one of your employees complete a sale with each of your competitors. How would they grade the quality of the product and level of service they receive?
9. How do your competitors market themselves?
Like any business, your competitors are using certain tools, systems, and strategies to get the word out about their business. Are they doing something you should adopt? Are they doing something you shouldn’t adopt?
10. Do your competitors make purchasing easier for customers?
Are there any barriers, or have your competitors crafted a seamless sales process? What can you learn from the way your competition does business?
11. Do you make purchasing easier for customers?
Are you making it easier for customers to shop with you? The more barriers that exist, the harder it becomes to close out a sale.
12. Is there a void in the market that you can fill?
One of the most effective ways to separate yourself from the competition or create an edge is to find the area of your market that isn’t being met and fill it. In our market, we noticed a need for tax planning and provided it!
13. What needs are your competitors filling that you aren’t?
Conversely, if there are needs that only your competitors are filling, consider whether adding those products or services could make your business the premier option in your market.
14. How does your competitor’s sales process compare to yours?
Hire a secret shopper to complete a sale with your company and each of your competitors. Ask them to be unbiased, analyzing the positive and negative aspects of their experiences. What needs to change for you to stand head and shoulders above the rest?