{"id":48711,"date":"2024-12-10T06:30:29","date_gmt":"2024-12-10T11:30:29","guid":{"rendered":"https:\/\/hingemarketing.com\/?p=48711"},"modified":"2024-12-03T15:52:33","modified_gmt":"2024-12-03T20:52:33","slug":"how-well-do-you-know-your-business-competitors","status":"publish","type":"post","link":"https:\/\/hingemarketing.com\/blog\/story\/how-well-do-you-know-your-business-competitors","title":{"rendered":"How Well Do You Know Your Business Competitors?"},"content":{"rendered":"

How many true competitors does your business have? And how well do you know them? Is it even important, anyway?<\/span><\/p>\n

At Hinge, we do a lot of competitive analysis<\/a> for our our clients. So if you’re unsure on the number of competitors your business has, then our buyer-focused research<\/a> can supply you with an approximate answer that\u2019s probably not too far off from the truth.\u00a0<\/span><\/p>\n

Let me explain.\u00a0<\/span><\/p>\n

We routinely ask our clients to identify what businesses they compete against. Then in our research<\/a> process, we ask <\/span>their<\/span><\/i> clients and prospects to name any firms that they considered or knew about when selecting a service provider. When we average these results over thousands of clients and buyers of their services, we find that there is about a 25% overlap.<\/span><\/p>\n\"Businesses\n

This means you probably don\u2019t even know about 75% of the firms you compete against! <\/span><\/p>\n

Now, if your firm is highly specialized with only a handful of true business competitors, this finding may not apply to you. But for the vast majority of companies, this is a pretty consistent result in our ongoing research.<\/span><\/p>\n

How can this be? I can think of three reasons.\u00a0<\/span><\/p>\n

Why You Don\u2019t Know Your Competitors as Well as You Think<\/h2>\n

There are quite a few reasons why it’s difficult to capture an accurate picture of the competitive landscape without conducting more formal competitive analysis research. <\/span><\/p>\n

First, when you compete for a client or project, you often aren\u2019t told who the other competitors are, especially in the early stages when there might be dozens of firms under consideration.\u00a0<\/span><\/p>\n

Second, the professional services marketplace is packed with look-alike competitors who shower your clients with marketing messages that make it <\/span>seem<\/span><\/i> like they do what you do. While most of these claims go unheeded, they don\u2019t necessarily go unnoticed.\u00a0<\/span><\/p>\n

Third, firms can be dismissive of competitors they consider inferior or unqualified. \u201cXYZ Group can\u2019t hold a candle to what we do!\u201d Or, \u201cThey don\u2019t don\u2019t have the experience to take on a project like that.\u201d Yet these firms often get serious consideration, and sometimes they even win the bid. Never underestimate a company you know little about.<\/span><\/p>\n

When you factor all these things together, it becomes clearer that the competitive landscape is a bit more complicated than we all imagine.<\/p>\n

\"\"<\/a>
Free Resource<\/h6>

The Differentiation Guide for Professional Services Firms<\/p>\nDownload Now<\/a><\/div><\/div>\n

Why You Need to Know Your Competitors<\/span><\/p>\n

Let\u2019s turn our attention now to the second question: How important is it that you do some competitive analysis<\/a>? There are two ways to think about this question. One way is what I just described\u2014who are you really competing against, and does it really matter?\u00a0<\/span><\/p>\n

The other way is to consider how much you actually know about the businesses you compete against. Do you know what they offer? How they talk about themselves? Why do clients hire them? As long as you continue to attract new business, should you even care what your opponents are doing and saying?<\/span><\/p>\n

In fact, there are many good reasons to keep an eye on your competition. That means knowing both <\/span>whom<\/span><\/i> you are competing against and <\/span>how<\/span><\/i> they approach the marketplace. This knowledge can equip you to differentiate your firm. After all, you can\u2019t separate yourself from the crowd if you know little about it. Here are three important ways that understanding your marketplace can help:<\/span><\/p>\n

    \n
  1. Messaging<\/b> \u2013 When you are aware of how others present and position their services and products, you can zag and describe yours in a fresh way or with a sharper selling proposition.<\/span><\/li>\n
  2. Branding<\/b> \u2013 How your brand looks can put your firm at a psychological advantage or disadvantage. Visual branding can provide powerful signals that convey credibility, confidence and creativity.<\/span><\/li>\n
  3. Service Offerings<\/b> \u2013 If you offer essentially the same services as your market peers, you might consider introducing a new service or changing the way you deliver some of your existing ones.<\/span><\/li>\n
  4. Marketing Strengths<\/strong> – Where does each of your competitors excel in their go-to-market strategy? Are they proficient in content and digital marketing techniques? What events, conferences, associations and partnerships do they engage with on a regular basis?<\/li>\n<\/ol>\n

    Another reason to investigate your competitors is to learn about their weaknesses. Armed with this intel, you can seek out the unoccupied high ground and potentially gain an advantage. You may even be able to uncover some of your rivals\u2019 marketing strategies and performance metrics, which you can use to inform your own approach to marketing.<\/span><\/p>\n

    The Fastest Growing Companies Monitor Their Business Competitors<\/h2>\n

    In addition to these two reasons, Hinge’s High Growth Study<\/a> has measured that the fastest growing professional services firms are regularly conducting research on their business competitors. We refer to these firms as the High Growth Firms\u2014and the data shows that those who conduct competitive analysis research, do so more frequently than their slower growing peers.<\/p>\n\"Of\n

    Most of the High Growth Firms who conduct competitive research report that they do so at least quarterly. Whether it’s monitoring the activity of the most direct or large competitors or scanning the marketplace for signs of new competitors entering the space, it’s clear that High Growth Firms have the tools and discipline to keep this as a part of their marketing strategy.<\/p>\n

    How to Learn About Your Competition<\/h2>\n

    So how do you gather all this information? It requires some competitive research<\/a>. Research is the only dependable way I know of to get an objective perspective on your marketplace. As that Venn diagram above shows, you can\u2019t depend on your own experiences to deliver a complete and accurate picture.\u00a0<\/span><\/p>\n

    Most likely, you\u2019ll need to hire an outside firm or consultant\u2014one that knows your industry and is well versed in competitive research and analysis. They will interview your team and your clients. Then they will review your top competitors and explore their positioning, messaging, service offerings, visual identity and certain marketing performance metrics.\u00a0<\/span><\/p>\n

    If you opt to do your own competitive analysis for your team, then create a collaborative, centralized spreadsheet that goes into detail on each of your competitors. Utilize tools like SEMrush<\/a> and Moz<\/a> to understand the digital reach of your competitors. Explore the competitor websites and document all you can about their brand positioning and digital marketing strategy. Encourage your team to keep this document updated as you learn more about the competitive landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"

    How many true competitors does your business have? And how well do you know them? Is it even important, anyway? At Hinge, we do a lot of competitive analysis for our our clients. So if you’re unsure on the number of competitors your business has, then our buyer-focused research can supply you with an approximate…<\/p>\n","protected":false},"author":86,"featured_media":48716,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[1],"tags":[440,397,399],"class_list":["post-48711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-differentiation","tag-research","tag-strategy"],"acf":[],"yoast_head":"\nHow Well Do You Know Your Business Competitors? - Hinge Marketing<\/title>\n<meta name=\"description\" content=\"What if we told you that you have more business competitors than you think? 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