If you’re running a business, it’s important to know what your competition is doing. This is where competitive audits come in. Competitive audits are a way of analyzing the strategies and tactics of your competitors to identify areas where you can improve your own business. In this blog post, we’ll look at why competitive audits are important and how to perform one.

Why Perform Competitive Audits?

There are several reasons any business should perform competitive audits. The first is to identify gaps in your strategy. These audits let companies see what their competitors are doing that they’re not. By identifying gaps in your own strategy, you can adjust your approach to better align with your competitors and stay competitive.

Of course, competitive audits also let you stay up to date on industry trends. By analyzing your competitors’ strategies, you can stay on top of any innovations or shifts in the market, a critical behavior for success since industries and customer needs change quickly. Along these lines is identifying opportunities for growth. By seeing what they’re doing successfully, you can adjust your approach and capitalize on similar opportunities.

Lastly, competitive audits let you understand your target audience better. Seeing what your competitors are doing and what’s working for them can help you tailor your approach to better connect with potential customers.

What To Include In A Competitive Audit

Now that you understand what competitive audits are so important, let’s break down some of the discrete components needed to complete this kind of audit.

Identify Your Competitors

The first step in performing a competitive audit is to identify your competitors. This might seem obvious, but it’s important to be thorough in your research. Look for both direct and indirect competitors, as well as any emerging competitors in the industry.

You can start with direct competitors first. These are the businesses that offer similar products or services to yours and are likely targeting the same customer base. Think about your customers and who they may be turning to instead of your business. This can help you identify competitors that you may not have thought of initially.

Keep an eye out for emerging competitors in your industry. These are businesses that may not be as established as your current competitors but have the potential to disrupt your industry in the future.

Keep an eye out for emerging competitors in your industry. These are businesses that may not be as established as your current competitors but have the potential to disrupt your industry in the future. Also, monitor social media to see who your customers are engaging with and who they are talking about in relation to your industry. This can help you identify competitors that you may not have thought of initially.

Analyze Their Website and Social Media

Once you’ve identified your competitors, it’s time to start analyzing their website and social media presence. Start by analyzing your competitors’ homepages. Look at the design, layout, and messaging to get a sense of how they’re positioning their brand and products. Pay attention to the images, colors, and overall aesthetic to understand how they’re trying to appeal to their target audience. Take note of the site structure and navigation. How easy is it to find the information you’re looking for? Is the site organized logically? Look at the hierarchy of pages and how they’re grouped together. Examine your competitors’ product and service pages. Look at how they’re presenting their offerings and what information they include. Note the features and benefits they highlight and any unique selling propositions (USPs) they promote.

Other things to look at include your competitors’ content and blog sections. What types of content are they creating? Are they publishing thought leadership pieces or more promotional content? Consider the tone and voice they use and how frequently they publish new content.

For social media, pay attention to your competitors’ follower counts and engagement rates. Look at how many followers they have on each platform and how much engagement they’re getting on their posts (likes, comments, shares, etc.). This can help you understand the size and level of engagement of their audience.

Also, look at the hashtags and keywords your competitors are using on social media. What themes or topics are they associating with their brand? Look at how they’re using hashtags to reach new audiences and connect with existing ones.

Analyze Their Pricing Strategy

You’ll of course want to look at your competitors’ pricing tiers. How are their products or services priced? Do they offer multiple pricing options or tiers? Are they using a subscription-based pricing model? This information can help you understand how your competitors are positioning their pricing and whether they’re appealing to different customer segments.

Look for any discounts or promotions your competitors are offering. Are they running sales or offering promo codes? What types of promotions are they using to incentivize customers to buy? Analyzing your competitors’ promotions can help you identify ways to improve your own promotional strategy.

Review Their Advertising Strategy

You’ll also want to check out how competitors are building awareness and interest in their products and services. Identify which advertising platforms your competitors are using. Are they running ads on Google, Facebook, Instagram, or other platforms? Look at the types of ads they’re running and the messaging they’re using to promote their products or services.

Analyze the creative elements of your competitors’ ads. What types of images or videos are they using? Are they featuring product shots, lifestyle imagery, or customer testimonials? Look at the copy they’re using and the tone of their messaging to get a sense of how they’re communicating with their audience. Additionally, consider how your competitors are targeting their ads. Who are they targeting, and how are they segmenting their audience? Are they targeting specific geographic locations or demographic groups? Analyzing your competitors’ targeting strategies can help you identify new audience segments to target in your own advertising.

How To Get Started On A Competitive Audit

Any company could tackle a competitive audit on their own. However, it is often helpful to leverage a market research firm to support this type of project.

They have a deep understanding of the market, the competitive landscape, and the latest research methods and tools. This enables them to provide valuable insights and recommendations based on objective data and analysis. Additionally, they are not influenced by internal biases or preconceptions about the market or competitors. This ensures that the competitive audit is conducted in an unbiased and impartial manner, providing a clear and accurate view of the competitive landscape.