By: Jennifer Brazer
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Fact Checked By: Brittany McMillen
Best Ways to Do a Competitor Analysis: Unlock Your Business Potential
When I stepped into the business arena two decades ago, the one truth I quickly realized was that understanding your competitors isn’t a nice-to-have–it’s an absolute must. As the founder of Complete Controller, I’ve experienced firsthand how competitor analysis can give you the edge you need to dominate your space. Whether you’re an entrepreneur just starting out or a seasoned business owner, taking a strategic look at what’s working (and not working) for others in your marketplace can transform your business. Here’s how to do it with precision, purpose, and profit in mind.
Why Competitor Analysis Matters
Competitor analysis isn’t the same as sneaking peeks at your rival’s website or regurgitating their playbook. Think of it as professional competitive intelligence—a finely honed practice of identifying what works, what doesn’t, and exactly where your business can outshine the competition.
Take a classic example: the rivalry between Coca-Cola and Pepsi. In the 1980s, Pepsi’s “Pepsi Challenge“ campaign created quite a stir. Coca-Cola could have folded under the pressure, but instead, they leaned into competitor analysis, identifying Pepsi’s growing appeal with younger audiences. Their response? A major shift in marketing with emotionally charged campaigns, including “Taste the Feeling,“ which emphasized brand loyalty over taste tests. This wasn’t just a reaction—it was a strategic action born out of competitive intelligence.
Steps to Conducting a Strong Competitor Analysis
Identify your competitors
Before you can rise above your competition, you need to know who they are. This means identifying both direct competitors (those offering similar products or services) and indirect competitors (those solving the same problem in a different way). For example, if you own a gym, don’t just focus on other gyms—consider digital fitness influencers and app-based personal trainers as indirect competitors.
Practical Steps:
- Search industry-relevant keywords online to see who ranks high in search results.
- Use platforms like SimilarWeb to uncover hidden competitors you may have overlooked.
- Pay attention to who’s attracting your target audience on social media or at industry events.
Gather key data
A good competitor analysis starts with good data collection. Think of this phase as putting on your detective hat. You’re not guessing; you’re systematically tracking metrics and clues.
What to Analyze:
- Revenue and Market Share: Use tools like Talkwalker or SEMRush to track performance.
- Customer Reviews and Feedback: Scour online reviews on Google, Yelp, and Trustpilot for insights into customer pain points.
- Pricing Models: Is your competition charging premium rates—and if so, what makes their offer worth it?
Tools to Use:
- Talkwalker for customer sentiment tracking.
- SpyFu for traffic and keyword data.
- Ahrefs for competitor backlink insights (more on that below).
And don’t forget analyzing your business alongside the competition requires accurate bookkeeping. Learn more about maintaining accurate financial statement accuracy to support informed decisions.
Analyze SEO performance
Want to know one of the quickest ways to understand your competitors’ strategies? Dive into their SEO game. By reviewing their keywords and backlinks, you can unearth opportunities they’re missing—and capture that audience on your end.
How to Do It:
- Check Their Keywords: Tools like Ahrefs or SEMRush can reveal high-ranking keywords your competitors frequently target.
- Audit Backlinks: These tools will also show which high-quality websites are linking to your competitors, offering you a chance to approach similar publishers.
Pro Tip: When reviewing their content, ask yourself, Are they leaving any questions unanswered? This is your golden opportunity to create richer, more thorough articles, blogs, or product pages to fill the gap.
For further guidance, you can explore a detailed checklist for SEO competitor analysis.
Conduct a SWOT analysis
A SWOT analysis—Strengths, Weaknesses, Opportunities, and Threats—is a tried-and-true way to decode what separates your competitors from the pack. This breakdown will help you spot easy wins or risks in your market.
Example SWOT Analysis:
| Factor | Example | ||
| Strength | Visible brand engagement on Instagram. | ||
| Weakness | Slow response rates to online inquiries. | ||
| Opportunity | Competitor lacks email marketing strategy for customer retention. | ||
| Threat | Digitation driving newer competitors targeting younger demographics. | ||
For an in-depth exploration of SWOT analyses, take a look at this comprehensive resource.
Monitor competitor metrics
Numbers don’t lie, and competitor performance metrics offer an unfiltered snapshot of their success. Focus on benchmarks that apply to your industry.
Metrics Worth Monitoring:
- Market share trends: Use a tool like SimilarWeb to keep your pulse on market movements.
- Customer acquisition costs and retention rates.
- Social media engagement and ad campaign spends.
Once the data is collected, don’t just let it sit. Make those insights actionable to give your business the edge it needs. For instance, if a competitor seems unbeatable in direct sales but fails in digital ad performance, that’s a clear opportunity to dial in with PPC advertising strategies.
Regularly revisit your analysis
Here’s the thing about markets—they evolve faster than we often realize. That’s why this isn’t a one-and-done process. Conducting your competitor analysis at least quarterly keeps your strategies fresh and responsive.
Tools That Simplify Competitor Analysis
Running a competitor analysis from scratch can feel like building IKEA furniture with no manual. Thankfully, there are excellent platforms that make gathering insights easier.
Top Picks:
- SEO and Traffic Analytics: Ahrefs, SEMRush, SpyFu.
- Competitor Sentiment Tracking: Talkwalker.
- Market Intelligence: SimilarWeb, Statista.
Make Your Data Work
Here’s a hard-earned lesson from my years as a CEO: A competitor analysis is only as good as what you do with the information. It’s not about spying—it’s about innovating. Know what your competitors are great at, adopt what works for your audience, and then find ways to refine an already winning formula.
Conclusion
A competitor analysis isn’t just another task on your to-do list—it’s a superpower for smarter decision-making. Identify the gaps, refine your strategy, and innovate like you mean it. As I tell my clients, progress happens when you stop aiming for “good enough“ and start striving for exceptional.
Let’s not stop here. Ready to elevate your business intelligence further? Work with expert strategists at Complete Controller here, and let’s take your business to new heights.
FAQ
How often should competitor analysis be done?
Quarterly updates are ideal to stay informed and adapt to rapid market changes.
What tools should I prioritize for small businesses on a budget?
Start with free tools like Google Analytics mixed with affordable options like Ubersuggest for SEO.
Why study indirect competitors?
Indirect competitors may offer creative solutions targeting your customers’ same goals—they’re a valuable source of inspiration.
Does competitor backlink analysis really help SEO?
Absolutely. Strong backlinks show you which sites value your competitor’s authority. That’s who you should reach out to!
Sources
- Talkwalker
- HubSpot: What Is a Competitive Analysis?
- Query Article
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
