The digital industry is fast-paced and the technological change across every arena of life is accelerating. There have been a lot of changes in the payments ecosystem for the last few years. This is also influencing the way businesses grow and remain profitable. Certainly, technology changes and marketing challenges add to the efforts of Value-Added Resellers. It is essential for VARS to be keen about these changes. VARs need to be on toes and adopt transformations to have a competitive analysis.
Understanding and keeping track of competition is an integral aspect of staying relevant in the future marketplace. This is particularly significant for VARs to keep track of their competition. Competitive analysis is certainly an investment that lets VARs get significant insight into the market. Keeping track of your competitors, tracking what people are saying about your competitors, etc. can prove beneficial to mark the difference and stay on the top of trends.
Competitive analysis is an ongoing process.
To understand the behaviour, weaknesses and strengths of your competitors, you will have to analyze and monitor them keenly and regularly. Thus, you can figure out opportunities and threats with regard to your competition and stay one step ahead. Most VARs collect information about their competitors; however, many fail to identify it as competitive analysis and its benefits. Thus, increase your business revenue by planning these strategies.
Systematically engaging in competitive analysis can yield several benefits including a clear understanding of the market, a better approach towards targeting customers, competitor pricing, competitor product tracking, market potential forecasting, tracking trends and more. This proves beneficial for VARS to better adapt to your market, competition, and customer base. Investing your time, efforts and energy to research the competition will let you develop a strong strategy that will be further helpful in accomplishing realistic business. This increases the chances of getting selected by the shoppers over everyone else.
So, let’s have a look at how to conduct a competitive analysis to develop and withstand a competitive advantage:
Know Your Competition:
The importance of embracing, knowing and respecting your competition is indeed incredible. Perhaps it is the most obvious thing to get in with the competition. Get to know your competition and what they are up to. It is essential for both startups and established businesses to be clearly aware of your competitors and how risky they can be for your business.
Go with industry trends and visit competition’s sites:
Competitive research is vital to your success because as a VAR, it arms you with the ability to pinpoint industry trends swiftly. This also proves beneficial in understanding competitor campaigns and strategies which further aids in marking your presence distinctly and having the competitive edge.
Go through your competitor reseller websites and offerings. Also, have a look at their product photography, detail product descriptions, the way they display their products will be beneficial for you. What kind of information are they including and what is missing that you can take advantage of. Remember, monitoring the competition is to just get the idea what your competitors are doing and to keep your prices in line with your competition. Never straight out copy competitor activities. Beat the competition with your innovative ideas. Competition analysis is to stay in the race and be ahead of everyone.
Know your target market:
Understanding your customers and their needs will position you to offer the best service at the right time. Research is indeed considered a vital aspect. Approach those around you. Communicate with your audience. Get in touch with your existing customers. Figure out your competitor’s customers and try to find out why they chose a competitor.
Review social media:
Have a look at their social media profiles. Understand how they are using social platforms and the kinds of promotions they are running. Remember, if the competitors have a good fan following and active engagement, then it is a positive sign of a potential market for your offerings. In addition to this, it will help you have a good idea of customers’ responses and mindsets about the business. Furthermore, a highly active competitor on social platforms also means that you need to be on toes and think out if box to engage your customer base. On the contrary, if the market is weak and is not active socially means you need to put efforts to increase social engagement. Think about all the social media channels such as Facebook, Pinterest, Twitter, Instagram, Reddit and sSnapchat and figure out how you can make the most out of it.
Also, think of conducting a SWOT analysis on your competitors as well. Remember, competition does not mean apparent competitors. Think about everyone who may fulfill the needs of your customer base. This will help to understand that how you can manage to make your service different from others.
Newsletters can be an effective way to keep you updated in the competition. Sign up for free newsletters which are beneficial for your market. You can also create your own newsletter to get in touch with your current customers. This also increases the chances of new customers. Try to figure out what your competitors include promotions, tips, upcoming events, etc. This will give insights into what to include in your newsletter.
Have a look at pricing strategy:
Pricing strategy is certainly one of the key aspects of your online business success. Several factors need to be kept in mind while pricing the products. Check how your competitors are pricing their products. This will help to get the idea of what your target market is ready to pay. Thus, it becomes easy to get an understanding of what prices might work well for your business. Consider a variety of channels. It is essential to maintain profitable margins to run your business and stay profitable. Never compromise in this arena. You are here to make money. So you need to plan a strategy that helps you to stay in the competition and earn a good profit.
Go through the reviews of your competitors if possible. Check business reviews, product reviews on their website, comments on social platforms and blogs to get an idea of what people are saying about products and business. This will help you to find out their strengths or weaknesses and think about how to make the most out of it. Think about how you can make your customer service shine and out-compete the other players in your online business landscape. Find out the weaknesses of your customers, how you can overcome those weaknesses and make better with your business. Knowing what your customers are up to is essential.
All in all, getting ahead in the competition is indeed crucial. The payments industry is going to grow and keep evolving. With the reseller market poised to expand at a fast pace, it is time to better your own business practices and sales strategies. Understanding your competition and conducting competitive analysis on an ongoing basis will help to get better, mark the difference and stand ahead in the competition.