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Competitor analysis in five steps
Half a day, no tools required, and it reliably produces two or three things you were not doing. The point is not to copy but to find the gap.
Key points
- Analyse the competitors your customers actually compare you with, not the biggest names.
- Their reviews are the cheapest market research available.
- The finding you want is what nobody in the market is saying.
Competitor analysis usually fails in one of two ways: it becomes a large document nobody uses, or it becomes an instruction to copy. Both waste the exercise.
Step 1: pick the right competitors
Not the market leaders. The firms your customers were also asking for a quote from. Ask three recent customers who else they contacted, and you will get a more accurate list than any research.
Include one from outside your category if it competes for the same budget. A landscaping firm competes with a kitchen extension for the same £15,000.
Step 2: read their reviews, not their websites
Their website says what they want to be true. Their reviews say what customers experienced.
Read the last thirty reviews of each, both good and bad, and note two lists: what customers repeatedly praise, which is what you must match; and what they repeatedly complain about, which is your opening.
The recurring complaint in a competitor's reviews is the sentence that should appear in your advertising.
Step 3: record what they say and where
| Dimension | What to note |
|---|---|
| Main claim | the sentence on the homepage |
| Price positioning | visible, on request, or hidden |
| Proof used | references, certificates, numbers, awards |
| Channels visible | search, social, print, outdoor, directories |
| Response speed | send an enquiry and time the reply |
The last row is the most useful and almost never done. Send a genuine enquiry to each competitor from a private address. Response time, tone and whether they follow up tell you more about the real competitive position than any positioning statement.
Step 4: find the empty space
Lay the main claims side by side. In most local markets three of the five say the same thing.
The interesting question is what nobody says. If all five lead on quality and experience, then fixed pricing, guaranteed dates, or a specific specialism are unoccupied ground.
Step 5: decide two actions
The output is not a document. It is two things you will do differently within a month, with an owner and a date.
Typical outputs: adopt a proof format nobody else uses, such as published prices; occupy a specialism visible in the market; fix the response-time gap, which is frequently the cheapest competitive advantage available.
What not to do
Do not match a competitor's price move, do not copy their campaign, and do not add a channel because they are in it. Their reasons are invisible to you and may be bad ones.
Frequently asked questions
How many competitors?
Three to five. More produces a spreadsheet nobody reads.
How often?
Once a year properly, plus a quick check whenever a competitor changes something visible.
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