For many businesses, 2020 has been one of the most trying and difficult years to navigate. With so much uncertainty, temporary closures, and workforces moving to an online environment, the upheaval has been months on end and has affected each person from the business owner, to employees, to customers. Even if you operate an e-commerce business that hasn’t been affected by closures, there’s a good chance the business has still felt the effects of the COVID-19 pandemic. So, what can you do?
While much of the current situation is out of anyone’s control, there are ways that you can keep your e-commerce business chugging along and remaining competitive even in this marketplace. One tool you may not have heard of or thought to pursue is a competitive analysis. Just what is a competitive analysis, and how could it benefit your e-commerce business? Let’s examine it closer.
What is a Competitive Analysis?
A competitive analysis is meant to shine the light on your competition so that you can learn what it is they are doing. You want that light to be as bright as possible so that you can gather the maximum amount of details.
As Cake Commerce, an eCommerce consulting firm explains, it will let you know what all the other brands/companies are doing in your industry, including their offerings, pricing, marketing, and of course, who their target market is. Rather than just acknowledging you have competition, this analysis works to identify each competitor in detail.
Cake Commerce actually features a number of ecommerce consulting services, with a competitive analysis being just one of them. The company’s eCommerce marketing audits and customized consulting services all have one goal in mind, and that is to help your business to succeed.
Highlight the Strengths and Weaknesses
Building upon that analysis, some of the most important pieces of information that will come out of it are the strengths and weaknesses of your competitors. You’ll be able to learn what they are doing exceptionally well and where they may have shortcomings. That is the exact sort of information your company can then use to its advantage to find it’s own “in” in the market, and perhaps build a unique hook on. For example, if your competitor is doing poorly with a certain demographic, that presents an opportunity for your business.
Craft a More Effective Marketing Message
This same information can also be used by your eCommerce company to craft a more effective marketing message. It could be that your services and products are exactly what people are wanting, but if they aren’t being marketed in the right way, then you’re not going to get the results.
Again, looking at the pros and cons of your competitors allows your company to learn from experience, and it doesn’t even have to be your own experience.
No Need to Learn from Mistakes
This leads us to the next point in that there is no need for your company to learn from mistakes. Instead, you can look at the mistake of others and learn the lessons right there.
Propel Your Business to the Next Level
Conducting an eCommerce competitive analysis can be a wise and effective way to truly propel your business to the next level.