Harnessing your strengths is vital in running a business or growing your brand. However, your company doesn’t exist in a silo–you have to consider your competitor’s strengths, too, to get the full picture of your market landscape.
How do you go about this? Good news: it’s not rocket science and we’re here to help.
In this article, we’ll explore what a competitive assessment entails and how you can execute this for your business. Whatever your goals, you will benefit from a competitor analysis (we guarantee it). Without further ado, let’s dive in.
What is a competitive strength assessment?
A competitive strength assessment is the process of determining how your main competitors are performing and comparing it to your performance using KPIs.
It helps you evaluate your competitors' strategies, strengths, and weaknesses, enabling you to refine your own.
What are the benefits of a competitive strength assessment?
Conducting a competitive strength assessment has several advantages that can directly impact your business strategy and outcomes.
Make Good Decisions
Data-driven decisions are the backbone of successful businesses. A competitive strength assessment equips you with actionable insights about your competitors’ performance, helping you identify what works and what doesn’t.
For example, if a competitor's PPC campaign is outperforming yours, the assessment can reveal why and how you can adjust.
Seize Opportunities
By understanding your competitors’ weaknesses and gaps, you can position your brand to fill those voids.
For instance, if competitors struggle with customer retention, you can focus on loyalty programs or better customer support. This allows you to capitalize on untapped opportunities and gain an edge.
Benchmark Your Performance
A competitive strength assessment helps you compare your performance against industry standards and competitors.
Whether it's sales metrics, website traffic, or email engagement, benchmarking helps you understand where you stand and what areas need improvement.
What to include in a competitive strength assessment
A thorough assessment starts with including the right elements. Here’s what you should focus on:
Competitor Profile
Start by creating a profile for each competitor. Include key details such as:
- Company size and market share
- Product offerings and pricing
- Marketing channels they use
- Customer demographics
This foundational step provides a clear understanding of who you’re competing against.
Data-driven decisions are the backbone of successful businesses. A competitive strength assessment equips you with actionable insights about your competitors’ performance, helping you identify what works and what doesn’t.
SWOT Analysis
A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is crucial for identifying where your competitors excel and where they fall short.
For example, a competitor’s strength might be a loyal customer base, while their weakness could be outdated technology. Use this to highlight areas where you can outperform them.
Competitor Data
Collect detailed data on competitors' activities across various channels, such as:
- Website performance (traffic, SEO rankings)
- Advertising strategies (ad spend, platforms used)
- Email marketing (subject lines, frequency, and design)
- Social media engagement (followers, interaction rates)
Tools like Panoramata can simplify this process by providing real-time data on ads, emails, and websites.
Customer Sentiment
Understanding how customers perceive your competitors is invaluable. Look at reviews, social media mentions, and forums to gauge customer satisfaction and pain points.
How to do a competitive strength assessment in marketing
Now that you know what to include, let’s break down the steps to conduct a competitive strength assessment in marketing.
Step 1: Identify Your Key Competitors
List your direct and indirect competitors. Direct competitors are those offering similar products or services to the same audience, while indirect competitors target overlapping audiences with different offerings.
For example, if you’re a SaaS company providing project management tools, direct competitors might include Asana and Trello, while indirect competitors could be Google Workspace.
Step 2: Gather Data Across Channels
Use tools like Panoramata, Similarweb, Spyfu, and Semrush to collect data on your competitors' marketing strategies. Focus on areas such as:
- Organic keywords they rank for
- PPC campaigns and ad copy
- Social media content and performance
- Email marketing campaigns
For instance, if a competitor's social media posts consistently get high engagement, analyze their tone, visuals, and posting frequency to learn what resonates with their audience.
Step 3: Perform a SWOT Analysis
Evaluate each competitor’s strengths, weaknesses, opportunities, and threats. For example:
Strengths: High SEO rankings, innovative products
Weaknesses: Low email open rates, poor customer service
Opportunities: Untapped social media platforms, emerging market trends
Threats: New market entrants, economic downturn
Step 4: Benchmark Your Performance
Compare your performance against competitors using the collected data.
This might include:
- Website traffic: Are they attracting more visitors?
- Conversion rates: Are their ads driving more sales?
- Content engagement: Is their blog or email newsletter generating more interest?
For example, if a competitor has higher conversion rates, investigate their landing page design, CTAs, and pricing strategies.
Step 5: Develop an Actionable Plan
Based on your findings, create a plan to address weaknesses and leverage opportunities.
If your analysis reveals competitors are outperforming you in social media engagement, consider adopting similar strategies like interactive posts or influencer collaborations.
Step 6: Monitor Progress Continuously
A competitive strength assessment isn’t a one-time exercise. Use a tool like Panoramata to track competitors’ changes in real-time, ensuring you stay updated on their latest moves.
Supercharge your competitive advantage with Panoramata
A competitive strength assessment is a powerful way to sharpen your marketing strategy and outpace competitors. By making informed decisions, seizing opportunities, and benchmarking your performance, you can build a strategy rooted in data and insights.
Including essential components like competitor profiles, SWOT analyses, and customer sentiment ensures your assessment is comprehensive. Following a structured process—identifying competitors, gathering data, performing analyses, and developing actionable plans—keeps your business agile and competitive.
For an all-in-one solution, consider tools like Panoramata to streamline competitor tracking and ensure you never miss an opportunity. Staying one step ahead starts with understanding the strengths and weaknesses of the competition—and using that knowledge to your advantage.
Frequently Asked Questions
1. What is a competitive strength assessment?
A competitive strength assessment is a process of evaluating your competitors’ strengths, weaknesses, and strategies to identify opportunities and refine your approach. It helps you make better decisions, benchmark your performance, and gain a competitive edge in your market.
2. How often should I conduct a competitive strength assessment?
Ideally, you should review your competitors weekly to stay updated on their strategies and market trends. For industries with frequent changes, daily tracking may be more beneficial.
3. What tools can help with a competitive strength assessment?
Tools like Panoramata can simplify the process by providing data on competitors’ ads, keywords, emails, and more. Choose a tool based on your specific needs, such as SEO insights or real-time competitor monitoring.