You have written the best strategy in the world, allocated a fair budget for advertising, and hired an enthusiast, professional team. Your project is ready to take flight! However, hold on just a minute.
Have you checked what your competitors are doing? Knowing what they are up to is extremely important. It allows you to take advantage of this knowledge. You can analyze their weaknesses and plan how to do better than them. On the contrary, you could also take some inspiration from their successful techniques. Most important of all, you are up-to-date on what is going on in your business field. It helps, for instance, if you want to predict future scenarios, that you can achieve with what-if analysis.
No man is an island, and no business is, either! Having a clear picture of your market is the best way to plan your next move.
If you have not done it yet, don’t panic – it’s not too late.
What you need is a competitor analysis.
We are going to see what a competitor analysis is, why it is useful for your brand, and, of course, how Artificial Intelligence can pump it up a bit.
Are you ready to discover everything about your competitors?
How Competitor Analysis Can Help Your Business
All failed companies are the same. They failed to escape competition. ~ Peter Thiel.
If you decide to start a business, you can not avoid competition, even if you work in a tiny niche. However, you can keep it under (a bit of) control by doing an accurate analysis of your competitors. You can not avoid that other people start businesses in your field, but being aware of what they are doing will be a wise and rewarding choice.
If you ask Investopedia, it defines competitive intelligence like this: “The process of collecting and analyzing information about competitors’ strengths and weaknesses legally and ethically to enhance business decision-making.” The key concept is that pieces of information are already on the web. The only thing you have to do is to find and use them for your own company’s good.
Some of the things you could learn about your competitors are their weaknesses and strengths, possible threats, and their USP.
We have determined that analyzing competitors is pretty mandatory to you. Very well, but how can you do it? Let’s see together the main steps.
- Do research. You start by searching your competitors’ names on Google to obtain a list to analyze. Select the most important players and remember to think outside of the box. Your customers can help you reach more pieces of information.
- Set your goals. What do you want to obtain from your competitor analysis? Weaks and strengths? Discover new niches and opportunities? Whatever, you need to write your aims down. Then you also need to set the goals that you need to be better than how they are. Do you want to be aware of their weak spots or enter a niche they are ignoring? Remember to keep your goals SMART – Specific, Measurable, Achievable, Relevant, and Timely.
- Collect the right data. Find out what your competitors are doing and not doing, too. Their lack of action may become your competitive advantage. You do not have to beware only of your direct competitors. Also, no not forget about potential competitors. They may sell a different kind of product that customers may consider interchangeable with yours. For instance, eggs can compete with cereals for breakfast. You must understand how people can replace you. You can use social monitoring tools, look for keywords, or use AI image recognition to find you or their brand scattered around.
- Analyze their website, their social accounts, and everything else on the web about them. Verify if their website is modern and if it works. Analyze their communication, their brand, their website, their social accounts, and their tone of voice. Is it modern or vintage? Is e-commerce working? Do they use social media, and, if so, what do they post and how frequently? Do they speak clearly and interact with their audience? How many people follow them, and how many interact with their channels? Which topics do they cover? Do they have any columns? You may also analyze their structure to see their approach to the market. Are they big or small? Where exactly do they play? Do they export their products? We have to tell you that this part is not as easy as you might believe. However, with patience and some tools, you might reach a decent amount of information.
- Analyze data. Naturally, after you collected all the data, you have to find a way to use them. Here you have to elaborate those pieces of information. Mostly, you want to make those data homogeneous to confront them. You select a couple of parameters from your competitors – or more, but try not to overdo – and put them side to side. For instance, you can select ROI, yearly turnover, or whatever else parameter. You can also make a gap analysis at this stage. It means to find out where and why your competitors are better than you and what your brand can do about it.
How AI Can Improve Competitor Analysis
Each of these steps we have seen is important, and Artificial intelligence can maximize your strategy. It can optimize what you have already done, and it can make your tactics even more powerful. Let’s find out how.
- Do research. Research can be a challenging task. Which data do you want to analyze? How many pieces of information can you collect? AI makes researching easier and faster. Moreover, you can find out a full new set of data. You can analyze any detail about your competitors at unprecedented scales and in a fraction of time. In this way, you will save a lot of time and effort. You will also be able to organize data in a useful way.
Machine learning takes advantage of algorithms to identify patterns inside an immense amount of data. You can find out the identities of your competitors and, thanks to Natural Language Processing (NLP), scan and process documentation. Real help when you are trying to figure out what they are doing with their campaigns.
- Know your market. Once you have all those details about your competitors, you might ask yourself if you are going to create an outstanding product or service that can outclass the others. By knowing what other players are doing and looking for market trends and positioning, you can set your future goals and plan your strategy with more accuracy. GhostWriterAI Lookalike Profiler is designed to help to identify a new audience and what people love all around the globe.
- Collect the right data. To look for the data you need is the best thing AI can do for your brand. Trying to do it manually would make you lost hours. Artificial Intelligence can collect and track all your competitors’ data on a given topic. For example, you could settle it for the content update on their website. In this way, AI could sort the patterns to understand what your competitors are going to do.
- Analyze data. Do not underestimate data analysis! AI tools can understand the deep meaning of what they are tracking. Once you collected all the pieces of information, you have to decide what to do with them. You can sort them by topic, product, or ROI, and try to figure out your competitors’ next move. AI can help you by typing those data at high speed and with an accuracy that humans do not possess. After this step, you will be able to craft your strategy to fight into the competitors’ arena. Are you ready?
Do you already use Artificial Intelligence for competitor analysis? Do you find it useful? And most of all, is there some trick you did not already know?
We are eager to know!
- It is impossible to avoid competitors in your field. However, competitor analysis can help you know them take advantage of it – and AI can help you reach this goal.
- To analyze your competitors, you have to follow several steps. You have to do research, set goals, collect, and analyze data. AI can help you boost all these steps.
- Thanks to AI, you can make competitor analysis deeper, faster, and more accurate in every step.
- How to Start a Competitive Analysis: 57 Questions You Need to Ask
- What is Competitive Analysis | Competitive Analysis Definition and Guide
- How Artificial Intelligence Can Optimize Competitors Monitoring
- Market Analysis And Competitive Intelligence With AI
- Three Reasons Why Artificial Intelligence Is The Ultimate Competitive Intelligence Colleague
- How to Add Artificial Intelligence to Your Competitive Intelligence