No matter the business venture you’re into, there’s competition. But beyond that, competition is rampant. You may worry about your competitors, even if you do not admit it openly. And that’s fine.
But is it important to know your competition or even care about what they’re doing? The answer is a resounding yes. Some of the major reasons to monitor competitors is that they help prove there’s a market for your bright idea.
Often when people come up with creative business ideas, only to find out there are others involved in them, they may be discouraged from forging ahead. However, it would help if you saw it from a different angle. If there are other businesses in your niche, it simply means that the market is viable and there are customers who need the service or product you want to provide.
It also allows you to understand their pricing models. When you keep an eye on your successful competitors, you have a faint idea of how their business works. And then, you can creatively implement yours.
This article explores why you need to identify and monitor competitors in your niche.
Why Is Competition Important?
You may want to see competition as rivalry in your niche. However, competition remains inevitable for businesses in any industry. Thus, it would help if you began to embrace it as a part of the process.
Why is competition essential?
● Competition heightens reassurance. Having competition means your potential customers have the option to choose a different business. So, when customers choose your products or services, you know that it is because your business appeals to them more.
● Competition breeds inspiration. Having competition around your business will go a long way in motivating you to become better. It forces you to stand out. And you’d be inspired to innovate your products.
● Competition can improve your online presence. Competition can inspire you to devise SEO strategies to rank higher in search engine results pages (SERPs). Showing on the first page of organic search is a huge flex. It means your website will be in front of people who need your products and services.
● Competition enhances loyalty. When customers choose your business over others, they will be more likely to do so in the near future. Thus, you will enjoy their patronage if you continue innovating your products.
● The competition allows for market research. Competition allows businesses to keep an eye on the market. From market research, you’d know how to better present pricing on your products and services.
● Competition improves brand awareness. Competition doesn’t only help you attract and retain customers. It also allows you to increase your brand awareness. Satisfied customers do not keep quiet. They talk to their friends and family about your products and why they should choose them above others. Every business needs this sort of indirect marketing.
● Competitors teach you new skills. You do not know if your current marketing and management skills need improvement if you do not have competition nearby. Having competition in business inspires you to acquire new skills. You can look at customer reviews about your rivals and learn from their mistakes.
It can be quite scary to have competition in your field. However, it’s vital to know your competition because they’d teach you creative ways to stand out and improve your bottom line. Embrace the competition and identify ways to progressively improve your business.
Types of Competition
Competition is inevitable in business. You know that already. But there are different types of competition in business. They include:
● Direct competition. It is probably who you’re thinking of when you think of competition in the real sense. These businesses or ventures offer similar products and services to the same market and target audience. A perfect example would be Coca-Cola vs Pepsi, Apple vs Android, or Netflix vs HBO Max. You can conclude that direct competition operates in the same industry, satisfies the same needs, and offers similar (or almost identical) products and services.
● Indirect competition. Businesses or ventures sell different products and services to compete for the same market. An example, in this case, would be Pizza Hut vs Mcdonald’s, hot vs cold beverages, juice vs coffee, etc.
The difference between a direct competitor vs indirect competitor is that while one offers similar services as yours, the other offers something different – but competes for the same market pool. Other forms of competition include replacement competition – where businesses offer an alternative to what you provide.
Ways to Identify the Competition
How do you identify the competitors in your niche? It’s easy. Follow the tips below:
Check the Page of Google
Search engine results pages are typically the best place to start. So, if you’ve ever asked, “who are my competitors?” you’d get your answers immediately.
Consider what queries your customers would use to search for your services and include a location. Look at the example below:
The image shows some ranking businesses in the Map Pack section of SERPs. Customers typically see and interact with these pages before looking at other results. You can carry out a customized search for your niche.
Research Targeted Keywords
Another way to know your competitors is to research targeted keywords and see the names of businesses also targeting those keywords.
It’s also similar to the first, but the target is on the keywords. Consider the example below for the target keyword: biker jeans.
Any business offering biker jeans can easily see who they’re up against. Keyword research tools include Ahrefs, Ubersuggest, SEMrush, Google Keyword Planner, SECockpit, Moz, KWFinder, and KeywordTool.
Monitor Social Media Conversations
Social media is where people have popular opinions on a wide range of topics. This includes business discussions and product reviews.
You can search on any social media platform to see who is asking for directions to a service you provide. You can also spot suggestions for other businesses in the comment sections.
You can also check out discussion platforms such as Reddit or Quora.
Do Market Research
You can also find your competitors by keeping an eye on the market. You can run a Google search, read niche journals, or discuss with your vendors.
Market research allows you to see which businesses have competitive offerings and pricing.
Ask Your Customers
Your customers are also vital to identifying your competitors. They must’ve sieved through countless businesses before settling with your services. You can strike up in-person, casual conversations with them to find out about them.
You can also send them an email survey after each sale and monitor their feedback.
What Makes You Different From Your Competitors?
The primary goal of most businesses today is to stand out from the competition and improve their profit margins. The only way to achieve that is to completely differentiate yourself. Here’s how:
● Have the best customer service and support.
● Don’t compare yourself to your competition.
● Invest in your packaging.
● Contribute to environmentally sustainable programs.
● Maintain transparency with pricing.
● Continue to innovate.
These tips will make your business distinct in a great way.
How to Handle Competition in Business
You cannot avoid competition in business. So, how do you handle it? Practice the tips below:
● Develop a relationship with your customers.
● Know your competition.
● Focus on why you’re different from your competition.
● Invest in company branding.
● Target new markets.
● Innovate your products.
● Take care of your staff.
These strategies will help upscale your business in ways you never imagined.
Conclusion
Competition is inevitable in business today. While you must know them, you should devise strategies to stand out from them. With all the strategies outlined in the article, you can take your business to the next level.