In today’s fiercely competitive business landscape, knowledge is power. Understanding your competitors’ strategies, strengths, and weaknesses can give a company a significant market advantage. This is where a well-executed competition survey comes into play.
What follows is a comprehensive guide that will investigate the importance of competitor analysis surveys, the steps involved in conducting one, and how this process will provide a competitive edge.
Why conduct a competition survey?
Understanding the rationale behind conducting a competitor research survey is crucial before delving into the process itself. Here are some compelling reasons why businesses should invest time and resources into surveying the competition:
Informed decision-making
A competition survey provides valuable insights that enable better planning in various business areas, from product development to marketing strategies. For instance, make strategic decisions about where to allocate resources and investments by understanding what products or services are gaining traction in the market.
Identifying market gaps
By studying competitors, gaps can be identified in the market that your business can fill, leading to new opportunities for growth and innovation. This proactive approach allows the tailoring of offerings to meet unmet customer needs. Read our blog on which market research questions to ask so that such gaps can be successfully identified.
Competitive positioning
Assessing competitors allows a brand to be positioned effectively, with unique selling points highlighted and differentiation from competitors. It’s not just about copying successful strategies but about finding a distinct place in the market ecosystem.
Risk mitigation
Knowledge of competitors’ strategies helps anticipate potential threats and challenges, allowing for the proactive mitigation of risk. For example, if a competitor is adopting aggressive pricing strategies, strategize accordingly to retain your customer base.
Remember, the business landscape is not static. As market conditions change, a competitive intelligence framework ensures that a business remains adaptable and responsive.
Getting started with a competitor research survey
Before diving into the survey process, it’s essential to lay the groundwork for a successful competitor analysis survey:
Set clear objectives
Define the specific goals of a survey. What information needs to be gathered? What decisions will this data inform? For example, if launching a new product, the objective might be to identify key competitors and assess their product features and pricing.
Identify competitors
Create a list of direct and indirect competitors. Understand who the primary rivals are and companies operating in adjacent markets. Recognize that competition isn’t always limited to businesses offering the same products or services; it can also extend to alternative solutions that current customers might consider.
Allocate resources
Determine the budget, time, and personnel required for the survey. Adequate resources are essential for conducting a thorough analysis. Ensure that the team has the necessary skills and tools to gather and analyze data effectively.
Data collection methodology
Decide how to collect information. Will you rely on publicly available data, conduct surveys, or engage in competitor interviews? Each approach has its advantages, and the choice will depend on specific objectives and available resources.
By carefully planning the initial stages of a competitor analysis survey, the foundation will be set for a comprehensive and insightful analysis of competitors—which is crucial for strategic decision-making. Read our ultimate guide to survey data collection to learn about useful examples and methodology.
Gathering information on competitors
The core of a competition survey involves gathering relevant information about competitors. This data can be divided into several key categories:
Company background
Research the histories of competitors, including when they were founded, their mission, and their corporate culture. Understanding their values and long-term vision can provide insights into their strategic direction.
Products or services
Understand, in detail, the products or services they offer. This includes not only features but also quality, pricing, and any unique selling propositions (USPs). Compare your offerings to theirs to identify areas that can be differentiated.
Market share and growth trends
Analyze market share data and assess whether competitors are gaining or losing ground. Understanding their growth trajectory can help anticipate their future moves. Use our market research surveys to get the needed data to make the right decisions.
Online presence
In today’s digital age, competitors’ online presence is a critical component to be considered. Examine websites, social media profiles, and online reviews to gauge their digital marketing strategies and customer interactions. Look for patterns in engagement with customers, such as responsiveness and content strategy. Learn more about trends and habits through survey data in our blog on conducting social media usage surveys.
Customer feedback
To identify common pain points and satisfaction levels, pay close attention to customer’s feedback and comments. Sentiment analysis can provide important insights into what customers value most and where competitors may be falling short.
Marketing strategies
Evaluate marketing efforts in-depth. This includes the channels they use (e.g., social media, email, content marketing), messaging and positioning, advertising campaigns, and branding. Compare their strategies to your own to identify gaps or opportunities for improvement.
Remember that the quality of data gathering is crucial. Only accurate or complete information can lead to correct decisions. Therefore, it’s essential to use reliable sources, conduct thorough research, and ensure that data is up-to-date.
Conducting a SWOT analysis
A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a powerful tool for evaluating competitors. Here’s how to perform a SWOT analysis effectively:
Identify competitor’s strengths
Identify what competitors do exceptionally well. This could include their strong brand reputation, extensive distribution networks, or innovative product features. Pay attention to areas where they excel and consider how to match or surpass these strengths.
Don’t forget about weaknesses as well
Highlight areas where competitors fall short. These might be poor customer service, outdated technology, or limited market reach. Recognizing such weaknesses can help identify opportunities to outperform them.
Opportunities
Look for potential growth opportunities that competitors have yet to tap into. This could involve expanding into new markets or offering unique features that cater to emerging customer needs. Identifying opportunities allows you to capitalize on gaps in the market.
Threats
Identify external factors that pose threats to competitors, such as changing market trends, regulatory challenges, or economic downturns. Understanding the threats they face can help in preparing for similar challenges or developing strategies to mitigate these risks.
A well-executed SWOT analysis not only provides insights into competitors but also guides internal strategic decision-making. By understanding competitors’ strengths and weaknesses, a business can be positioned to take advantage of opportunities and proactively address potential threats.
Customer feedback and benchmarking
A competitor analysis survey should include a deep dive into customer feedback and benchmarking:
Customer feedback
Customer reviews and feedback can be a goldmine of information. Analyze these inputs to gain insights into what customers value and where improvements are needed. Pay attention to recurring themes and pain points mentioned in the feedback. Compare customer sentiments toward competitors to gauge overall satisfaction. Customer satisfaction is also the gateway to better customer relations—explore our customer satisfaction survey examples to learn more.
Benchmarking
Benchmarking is the process of comparing business performance against that of competitors. It involves measuring key performance indicators (KPIs) such as revenue, market share, customer retention rates, and operational efficiency. Identify areas where your business excels and those where there is room for improvement. Benchmarking helps set performance targets and strategic goals.
Product or service quality
Assess the quality of competitor’s products or services. This can include factors like durability, features, ease of use, and customer support. Identify areas where you can differentiate by offering superior quality.
Pricing and value proposition
Evaluate the pricing strategies of competitors. Consider factors like price elasticity and the perceived value of products or services. Determine whether your pricing aligns with customer expectations and market standards.
By analyzing customer feedback and benchmarking data, gain a holistic view of competitor’s strengths and weaknesses while also gaining insights into your company’s performance. This information is invaluable for refining strategies and staying competitive in the market.
Strategy development and continuous monitoring
Once such data has been gathered and analyzed, it’s time to put the competition survey insights into action:
Strategy development
Use the information collected to refine business strategy, product offerings, pricing strategies, and marketing campaigns. For example, if it is discovered that a competitor is successfully targeting a niche market segment, consider whether a similar approach could work for your business. Adapt and innovate based on the data to maintain a competitive edge.
Continuous monitoring
The competitive landscape is dynamic. Implement mechanisms to stay updated on changes in the strategies of competitors and overall market conditions. This could involve setting up alerts for industry news, tracking social media activity, or regularly reassessing the competitor research survey content. Staying informed allows you to respond swiftly to new opportunities or threats.
Iterative improvement
A competitor research survey should be an iterative process. Regularly revisit survey methodology and objectives to ensure they remain aligned with business goals. Make adjustments as needed to gather the most relevant and up-to-date information.
Feedback loop
Establish a feedback loop within the organization to ensure that insights from the competition survey are integrated into decision-making processes. Share findings with relevant teams—such as product development, marketing, and sales—to drive actionable strategies.
Remember that competitors are also likely to monitor the market and adapt their strategies. Continuous monitoring and strategic agility are crucial to maintaining a competitive advantage over the long term.
Ethical considerations
Conducting a competition survey ethically and complying with privacy laws and regulations is essential. Here are some ethical considerations to keep in mind:
Respect intellectual property
Avoid any unethical practices such as unauthorized access to confidential information or intellectual property theft. Respect competitors’ rights and adhere to copyright and trademark laws.
Transparency
If collecting data through surveys or interviews, be transparent about intentions and ensure that participants consent to sharing information. Follow ethical research practices and maintain data privacy.
Competitor interactions
When engaging with competitors directly, maintain professionalism and respect. Collaboration and partnerships are possible even in competitive industries and should be conducted ethically and within legal boundaries.
Data security
Protect the data collected, ensuring it is stored securely and used only for the intended purpose. Implement robust data security measures to prevent data breaches.
Adherence to regulations
Stay updated on relevant laws and regulations in your industry, especially those related to data privacy and competition. Compliance with these regulations is not only ethical but also essential to avoid legal issues.
By conducting a competition survey with integrity and ethical considerations, your brand’s reputation is protected and trust is built with customers and industry peers.
Try SurveyPlanet’s Survey Maker to easily create competitor research surveys
In the ever-evolving business world, staying ahead of the competition is paramount. Conducting a competitor research survey is an ongoing process that should be part of a standard business strategy.
Armed with the insights from such surveys, a business can adapt, innovate, and make informed decisions that will secure a competitive advantage in the market. Remember, knowledge is power—and power leads to success in business.
Join SurveyPlanet’s online survey platform to effortlessly craft competitor research surveys. Take advantage of our extensive array of features—including pre-written questions, templates, and customizable designs. Discover even more options by exploring our plans by clicking here.
Photo by VD Photography on Unsplash