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When was the last time you ran a competitive analysis for your brand?

If you’re not sure, or if the last “analysis” you ran was a quick perusal of a competitor’s website and social media presence, you’re likely missing out on important intelligence that could help your brand grow.

To help you get started with competitive analysis the right way, we’re breaking down everything you’ll want to look for below.

Download the full competitive analysis kit from HubSpot and Amazon Alexa Web here.

Every brand can benefit from regular competitor analysis. By performing a competitor analysis, you’ll be able to: 

• Identify gaps in the market
• Develop new products and services
• Uncover market trends
• Market and sell more effectively

As you can see, learning any of these four components will lead your brand down the path of achievement. But before you get too excited to start, we need to nail down a few important basics.

How to Identify Your True Competition

First, you’ll need to figure out who you’re really competing with so you can compare the data accurately. What works in a business similar to yours may not work for your brand.

So how can you do this?

Divide your “competitors” into two categories: direct and indirect.

Direct competitors are businesses that offer a product or service that could pass as a similar substitute for yours, and that operate in your same geographic area.

On the flip side, an indirect competitor is one that provides products that are not the same but could satisfy the same customer need or solve the same problem.

It seems simple enough on paper, but these two terms are often misused.

When comparing your brand, you should only focus on your direct competitors. This is something many brands get wrong.

Let’s use an example: Stitch Fix and Fabletics are both subscription-based services that sell clothes on a monthly basis and serve a similar target audience.

But as we look deeper, we can see that the actual product (clothes in this case) are not really the same; one brand focuses on stylish everyday outfits while the other is workout-centric attire only.

Yes, these brands satisfy the same need for women (having trendy clothes delivered right to their doorstep each month), but they do so with completely different types of clothing, making them indirect competitors.

This means Kate Hudson’s team at Fabletics would not want to spend their time studying Stitch Fix too closely since their audiences probably vary quite a bit. Even if it’s only slightly, this tiny variation is enough to make a big difference.

Now, this doesn’t mean you should toss your indirect competitors out the window completely.

Keep these brands on your radar since they could shift positions at any time and cross over into the direct competitor zone. Using our example, Stitch Fix could start a workout line, which would certainly change things for Fabletics.

This is also one of the reasons why you’ll want to routinely run a competitor analysis. The market can and will shift at anytime, and if you’re not constantly scoping it out, you won’t be aware of these changes until it’s too late.

What Exactly Are We Comparing?

Once you identify your true competition, you’ll need to determine what metrics you’ll be comparing across the board.

There are three specific categories to focus on: business (the products), sales, and marketing.

Business (Products)

At the heart of any business is its product or service, which is what makes this a good place to start.

You’ll want to analyze your competitor’s complete product line and the quality of the products or services they’re offering.

You should also take note of their pricing and any discounts they’re offering customers.

Some questions to consider include:

• Are they a low-cost or high-cost provider?
• Are they working mainly volume sales or one-o purchases?
• What is their market share?
• What are characteristics and needs of their ideal customers?
• Are they using different pricing strategies for online purchases versus brick and mortar?
• How does the company di erentiate itself from its competitors?
• How do they distribute their products/services?

Sales

Running a sales analysis of your competitors can be a bit tricky.

You’ll want to track down the answers to questions such as:

• What does the sales process look like?
• What channels are they selling through?
• Do they have multiple locations and how does this give them an advantage?
• Are they expanding? Scaling down?
• Do they have partner reselling programs?
• What are their customers reasons for not buying? For ending their relationship with the company?
• What are their revenues each year? What about total sales volume?
• Do they regularly discount their products or services?
• How involved is a salesperson in the process?

These helpful pieces of information will give you an idea of how competitive the sales process is, and what information you need to prepare your sales reps with to compete during the final buy stage.

For publicly held companies, you can find annual reports online, but you’ll have to do some sleuthing to find this info from privately owned businesses.

You could find some of this information by searching through your CRM and reaching out to those customers who mentioned they were considering your competitor. Find out what made them choose your product or service over others out there.

To do this, run a report that shows all prospective deals where there was an identified competitor.

If this data is not something you currently record, talk to marketing and sales to implement a system where prospects are questioned about the other companies they are considering.

Essentially, they’ll need to ask their leads (either through a form field or during a one- on-one sales conversation) to identify who their current service providers are, who they’ve used in the past, and who else they are considering during the buying process.

When a competitor is identified, have your sales team dive deeper by asking why they are considering switching to your product. If you’ve already lost the deal, be sure to follow up the with prospect to determine why you lost to your competitor. What services or features attracted the prospect? Was it about price? What’s the prospect’s impression of your sales process? If they’ve already made the switch, find out why they made this decision.

By asking open-ended questions, you’ll have honest feedback about what customers find appealing about your brand and what might be turning customers away.

Once you’ve answered these questions, you can start scoping out your competitor’s marketing efforts.

Marketing

Analyzing your competitor’s website is the fastest way to gauge their marketing efforts. Take note of any of the following items and copy down the specific URL for future reference:

• Do they have a blog?
• Are they creating whitepapers or ebooks?
• Do they post videos or webinars?
• Do they have a podcast?
• Are they using static visual content such as infographics and cartoons?
• What about slide decks?
• Do they have a FAQs section?
• Are there featured articles?
• Do you see press releases?
• Do they have a media kit?
• What about case studies?
• Do they publish buying guides and data sheets?
• What online and offine advertising campaigns are they running?

Then, take a look at the quantity of these items. Do they have several hundred blog posts or a small handful? Are there five white papers and just one ebook?

Next, determine the frequency of these content assets. Are they publishing something new each week or once a month? How often does a new ebook or case study come out?

Chances are, if you come across a robust archive of content, your competitor has been publishing regularly. Depending on the topics they’re discussing, this content may help you hone in on their lead generating strategies.

From there, you should move on to evaluating the quality of their content. After all, if the quality is lacking, it won’t matter how often they post since their target audience won’t find much value there.

Choose a small handful of samples to review instead of tackling every single piece to make the process more manageable.

Your sampler should include content pieces covering a variety of topics so you’ll have a fairly complete picture of what your competitor shares with their target audience.

When analyzing your competitor’s content, consider the following questions:

• How accurate is their content?
• Are spelling or grammar errors present?
• How in-depth does their content go? (Is it introductory level that just scratches the surface or more advanced topics with high-level ideas?)
• What tone do they use?
• Is the content structured for readability? (Are they using bullet points, bold headings, and numbered lists?)
• Is their content free and available to anyone or do their readers need to opt-in?
• Who is writing their content? (In-house team? One person? Multiple contributors?)
• Is there a visible byline or bio attached to their articles?

As you continue to scan the content, pay attention to the photos and imagery your competitors are using.

Do you quickly scroll past generic stock photos or are you impressed by custom illustrations and images? If they‘re using stock photos, do they at least have overlays of text quotes or calls-to- action that are specific to their business?

If their photos are custom, are they sourced from outside graphic professionals or do they appear to be done in-house?

When you have a solid understanding of your competitor’s content marketing strategy, it’s time to find out if it’s truly working for them.

Content Engagement

To gauge how engaging your competitor’s content is to their readers, you’ll need to see how their target audience responds to what they’re posting.

Check the average number of comments, shares, and likes on your competitor’s content and find out if:

• Certain topics resonate better than others
• The comments are negative, positive, or a mix
• People are tweeting about specific topics more than others
• Readers respond better to Facebook updates about certain content
• Don’t forget to note if your competitor categorizes their content using tags, and if they have social media follow and share buttons attached to each piece of content. Both of these will a ect engagement activity.

Content Promotion

From engagement, you’ll move right along to your competitor’s content promotion strategy.

• Keyword density in the copy itself
• Image ALT text tags
• Use of internal linking

The following questions can also help you prioritize and focus on what to pay attention to:

• Which keywords are your competitors focusing on that you still haven’t tapped into?
• What content of theirs is highly shared and linked to? How does your content compare?
• Which social media platforms is your target audience using and the most active on?
• What other sites are linking back to your competitor’s site, but not yours?
• Who else is sharing what your competitors are publishing?
• Who is referring traffic to your competitor’s site?
• For the keywords you want to focus on, what is the diffculty level? There are several free (and paid) tools that will give you a comprehensive evaluation of your competitor’s search engine optimization.

Social Media Presence

The last area you’ll want to evaluate when it comes to marketing is your competitor’s social media presence and engagement rates.

How does your competition drive engagement with their brand through social media? Do you see social sharing buttons with each article? Does your competitor have links to their social media channels in the header, footer, or somewhere else? Are these clearly visible? Do they use calls-to-action with these buttons?

If your competitors are using a social network that you may not be on, it’s worth learning more about how that platform may be able to help your business, too. To determine if a new social media platform is worth your time, check your competitor’s engagement rates on those sites. First, visit the following sites to see if your competition has an account on these platforms:

• Facebook
• Twitter
• Instagram
• Snapchat
• LinkedIn
• YouTube
• Pinterest

Then, take note of the following quantitative items from each platform:

• Number of fans/followers
• Posting frequency and consistency
• Content engagement (Are users leaving comments or sharing their posts?)
• Content virality (How many shares, repins, and retweets do their posts get?)

With the same critical eye you used to gauge your competition’s content marketing strategy, take a fine-toothed comb to analyze their social media strategy.

What kind of content are they posting? Are they more focused on driving people to landing pages, resulting in new leads? Or are they posting visual content to promote engagement and brand awareness?

How much of this content is original? Do they share curated content from other sources? Are these sources regular contributors? What is the overall tone of the content?

How does your competition interact with their followers? How frequently do their followers interact with their content?

After you collect this data, generate an overall grade for the quality of your competitor’s content. This will help you compare the rest of your competitors using a similar grading scale.

SWOT (Strengths, Weaknesses, Opportunities, & Threats)

As you evaluate each component in your competitor analysis (business, sales, and marketing), get into the habit of performing a simplified SWOT analysis at the same time.
This means you’ll take note of your competitor’s strengths, weaknesses, opportunities, and threats any time you assess an overall grade.

Some questions to get you started include:

• What is your competitor doing really well with? (Products, content marketing, social
  media, etc.)
• Where does your competitor have the advantage over your brand?
• What is the weakest area for your competitor?
• Where does your brand have the advantage over your competitor?
• What could they do better with?
• In what areas would you consider this competitor as a threat?
• Are there opportunities in the market that your competitor has identified?

You’ll be able to compare their weaknesses against your strengths and vice versa. By doing this, you can better position your company, and you’ll start to uncover areas for improvement within your own brand.

How Does Your Business Currently Stack Up?

Before you accurately compare your competition, you need to establish a baseline. This also helps when it comes time to perform a SWOT analysis.

Take an objective look at your business, sales, and marketing e orts through the same metrics you use to evaluate your competition.

Record this information just like you would with a competitor and use this as your baseline to compare across the board.

Ready to get started with the full ebook and template? Click here to access the complete Competitive Analysis Kit. 

Let’s say you’ve come to the difficult realization that quite frankly your brand — if you can even call it that — is all over the place. Or perhaps worse, you have a defined brand, but you’re noticing that it just doesn’t seem to mesh with who you really are and what you really do.

Don’t panic.

Before you get all hung up on what shade of green to use for your logo or what tone you’re going to use when engaging with people on Twitter, you need to step back and take a look at the big picture.

What is Brand Strategy?

Brand strategy is a plan that encompasses specific, long-term goals that can be achieved with the evolution of a successful brand — the combined components of your company’s character that make it identifiable.

(We’ll get into that more in a bit.)

A well-defined and executed brand strategy affects all aspects of a business and is directly connected to consumer needs, emotions, and competitive environments.

First, let’s clear up the biggest misconception about brand strategy: Your brand is not your product, your logo, your website, or your name.

In fact, your brand is much more than that — it’s the stuff that feels intangible. But it’s that hard-to-pin-down feeling that separates powerhouse and mediocre brands from each other.

So to help you rein in what many marketers consider more of an art and less of a science, we’ve broken down seven essential components of a comprehensive brand strategy that will help keep your company around for ages.

7 Components for a Comprehensive Branding Strategy

1) Purpose

“Every brand makes a promise. But in a marketplace in which consumer confidence is low and budgetary vigilance is high, it’s not just making a promise that separates one brand from another, but having a defining purpose,” explains Allen Adamson, chairman of the North America region of brand consulting and design firm Landor Associates.

While understanding what your business promises is necessary when defining your brand positioning, knowing why you wake up every day and go to work carries more weight. In other words, your purpose is more specific, in that it serves as a differentiator between you and your competitors.

How can you define your business’ purpose? According to Business Strategy Insider, purpose can be viewed in two ways:

• Functional: This concept focuses on the evaluations of success in terms of immediate and commercial reasons — i.e. the purpose of the business is to make money.
• Intentional: This concept focuses on success as it relates to the ability to make money and do good in the world.

While making money is important to almost every business, we admire brands that emphasize their willingness to achieve more than just profitability, like IKEA:

Source: IKEA

IKEA’s vision isn’t just to sell furniture, but rather, to “create a better everyday life.” This approach is appealing to potential customers, as it demonstrates their commitment to providing value beyond the point of sale.

When defining your business’ purpose, keep this example in mind. While making money is a priority, operating under that notion alone does little to set your brand apart from others in your industry.

Our advice? Dig a little deeper. If you need inspiration, check out the brands you admire, and see how they frame their mission and vision statements.

2) Consistency

The key to consistency is to avoid talking about things that don’t relate to or enhance your brand. Added a new photo to your business’ Facebook Page? What does it mean for your company? Does it align with your message, or was it just something funny that would, quite frankly, confuse your audience?

In an effort to give your brand a platform to stand on, you need to be sure that all of your messaging is cohesive. Ultimately, consistency contributes to brand recognition, which fuels customer loyalty. (No pressure, right?)

To see a great example of consistency, let’s look at Coca-Cola. As a result of its commitment to consistency, every element of the brand’s marketing works harmoniously together. This has helped it become one of the most recognizable brands in the world.

Even on the surface of its social media accounts, for example, the seamlessness of its brand is very apparent:

To avoid leaving potential customers struggling to put the disconnected pieces of your business together, consider the benefits of creating a style guide. A style guide can encompass everything from the tone of voice you’ll use to the color scheme you’ll employ to the way you’ll position certain products or services.

By taking the time to define and agree upon these considerations, your brand will benefit as a whole.

3) Emotion

Customers aren’t always rational.

How else do you explain the person who paid thousands of dollars more for a Harley rather than buying another cheaper, equally well-made bike? There was an emotional voice in there somewhere, whispering: “Buy a Harley.”

But why?

Harley Davidson uses emotional branding by creating a community around its brand. It began HOG — Harley Owners Group — to connect their customers with their brand (and each other).

Source: HOG

By providing customers with an opportunity to feel like they’re part of a larger group that’s more tight-knit than just a bunch of motorcycle riders, Harley Davidson is able to position themselves as an obvious choice for someone looking to purchase a bike.

Why? People have an innate desire to build relationships. Research from psychologists Roy Baumeister and Mark Leary best describes this need in their “belongingness hypothesis,” which states: “People have a basic psychological need to feel closely connected to others, and that caring, affectionate bonds from close relationships are a major part of human behavior.”

Not to mention, belongingness — the need for love, affection, and being part of groups — falls directly in the middle of Maslow’s hierarchy of needs, which aims to categorize different human needs.

The lesson to be learned? Find a way to connect with your customers on a deeper, more emotional level. Do you give them peace of mind? Make them feel like part of the family? Do you make life easier? Use emotional triggers like these to strengthen your relationship and foster loyalty.

4) Flexibility

In this fast-changing world, marketers must remain flexible to stay relevant. On the plus side, this frees you to be creative with your campaigns.

You may be thinking, “Wait a minute, how am I supposed to remain consistent while also being flexible?”

Good question. While consistency aims to set the standard for your brand, flexibility enables you to make adjustments that build interest and distinguish your approach from that of your competition.

In other words, “effective identity programs require enough consistency to be identifiable, but enough variation to keep things fresh and human,” explains president of Peopledesign, Kevin Budelmann.

A great example of this type of strategic balance comes from Old Spice. These days, Old Spice is one of the best examples of successful marketing across the board. However, up until recently, wearing Old Spice was pretty much an unspoken requirement for dads everywhere. Today, it’s one of the most popular brands for men of all ages.

The secret? Flexibility.

Aware that it needed to do something to secure its place in the market, Old Spice teamed up with Wieden+Kennedy to position their brand for a new customer base.

Source: Works Design Group

Between new commercials, a new website, new packaging, and new product names, Old Spice managed to attract the attention of a new, younger generation by making strategic enhancements to its already strong brand.

So if your old tactics aren’t working anymore, don’t be afraid to change. Just because it worked in the past doesn’t mean it’s working now.

Take the opportunity to engage your followers in fresh, new ways. Are there some out-of-the-box partnerships your brand can make? Are there attributes about your product you never highlighted? Use those to connect with new customers and remind your old ones why they love you.

5) Employee Involvement

As we mentioned before, achieving a sense of consistency is important if you wish to build brand recognition. And while a style guide can help you achieve a cohesive digital experience, it’s equally important for your employees to be well versed in the how they should be communicating with customers and representing the brand.

If your brand is playful and bubbly through Twitter engagements, then it wouldn’t make sense if a customer called in and was connected with a grumpy, monotone representative, right?

To avoid this type of mismatched experience, take note of Zappos’ approach.

If you’ve ever been on the line with a customer service representative from Zappos, you know what I’m talking about. If you haven’t, check out this SlideShare which details some of its most inspiring customer support stories.

Zappos is so committed to ensuring that not only its brand, but all brands, remain consistent across digital and human interactions that they’ve dedicated an entire department to the cause called Zappos Insights.

Come join us and learn the Zappos WOW approach to customer service! Learn more about the Zappos School of WOW: https://t.co/g3tU4179q9 http://pic.twitter.com/eRkpcfYAKD

— Zappos Insights (@ZapposInsights)
August 21, 2017

By holding all Zappos employees to its core values
and helping other companies implement the same approach, Zappos has built a strong reputation for solid, helpful, and human customer service.

6) Loyalty

If you already have people that love you, your company, and your brand, don’t just sit there. Reward them for that love.

These customers have gone out their way to write about you, to tell their friends about you, and to act as your brand ambassadors. Cultivating loyalty from these people early on will yield more returning customers — and more profit for your business.

Sometimes, just a thank you is all that’s needed. Other times, it’s better to go above and beyond. Write them a personalized letter. Sent them some special swag. Ask them to write a review, and feature them prominently on your website. (Or all of the above!)

When we reached 15,000 customers here at HubSpot, we wanted to say thank you in a big way, while remaining true to our brand … so we dropped 15,000 orange ping pong balls from our fourth-floor balcony and spelled out thank you in big metallic balloons:

And while it may have seemed a little out of the ordinary to some folks, for those who know our brand, the gesture made perfect sense.

Loyalty is a critical part of every brand strategy, especially if you’re looking to support your sales organization. At the end of the day, highlighting a positive relationship between you and your existing customers sets the tone for what potential customers can expect if they choose to do business with you.

7) Competitive Awareness

Take the competition as a challenge to improve your own strategy and create greater value in your overall brand. You are in the same business and going after the same customers, right? So watch what they do.

Do some of their tactics succeed? Do some fail? Tailor your brand positioning based on their experience to better your company.

A great example of how to improve your brand by learning from your competitors comes from Pizza Hut:

@TheRealElysium You know our vote. ^AB

— Pizza Hut (@pizzahut)
March 20, 2016

When a pizza lover posed this question to his Twitter following, Pizza Hut didn’t miss a beat, and playfully responded in minutes, before Domino’s had a chance to speak up.

If Domino’s is keeping an eye on the competitors, they’ll know to act fast the next time a situation like this arises.

For HubSpot customers, keeping tabs on your competitor’s social mentions is easy using the Social Monitoring App. Check out this article to learn more about how to set up custom social streams.

And while staying in tune with your competitor’s strategies is important if you want to enhance your brand, don’t let them dictate each and every move you make.

Sure, you probably sell a similar product or service as many other companies, but you’re in business because your brand is unique. By harping on every move your competitor makes, you lose that differentiation.