It is often natural to compare yourself with your competitors in this fast paced online world. Measuring the strengths and weakness of your business with the top industry players, helps define the company’s position, highlight gaps and uncover opportunities for the business.
What is Competitive Benchmarking?
Competitive benchmarking is the process of comparing your business with number of peers in the given market using a collective set of metrics. This is an essential approach for better understanding of how well you are performing against your competitors and helps pinpoint the areas where improvements are required.
Performing competitive benchmarking in an online business helps you to:
- Audit & evaluate the current marketing strategies.
- Identify gaps in the existing business tactics and accordingly device long term marketing strategy.
- Unveil new business opportunities to boost your online traffic and differentiate your brand.
How to Perform Competitive Benchmarking?
Competitor analysis normally involves businesses providing same services or with the same target audience. This article details simple process of performing online marketing competitive benchmarking for your business and steps that are crucial for it:
1. Identify Your Primary Competitors
Before commencing the benchmarking, it is absolutely necessary to identify the most relevant competitors for your business. You can do it by identifying the top keywords you want your business to rank for and based on those select most relevant 5 online leaders.
Be realistic while choosing the competitors and include only those who are your direct competitors i.e. target same audience or have similar products. You can consider the secondary and other aspirational brands for viewing their performance.
2. Identify Apposite Competitive Metrics
Determining the right KPIs and metrics help track competitors performance and spot areas with greater impact. Analyzing the competitor’s website traffic is the best place to start the assessment. Along with that, find out:
- Which marketing channels is best performing for them viz. organic search, paid, social,
- Which countries drives most traffic to their sites
- Determine their top landing pages and content distribution on it
- Which audience group is most engaged to the business
- Backlinks performance and links they have earned from various sources
- What are their top organic and paid keywords?
3. Get Marketing Ideas from their Online Advertising
Evaluate their online advertising strategies and highlight key points. Learn what can be adopted from their ads, their seasonal preferences, keywords targeted and more.
Analyzing their paid ads can help you measure rival’s advertising activities along with the targeting geography and markets. Through this, you can also optimize existing ads in terms of keywords, title and call to actions.
4. Keep a tab on Competitor’s Social Media Moves
Social Media is an ever growing digital space which requires its own marketing strategies and approach. Audit competitor’s social profiles to:
- Analyze their social media reach
- Determine which profiles are driving most traffic
- Know their content type and frequency of their engagement with the users
- See if they are running any promotional advertising for social media
5. Review the Findings and Devise Strategy for Your Business
After reviewing and gathering all the key points, you now need to evaluate and plan for the online campaigns that best suit your business. Compare your current marketing strategy that with the competitors findings and filter out the ideas that do not comply with your brand. Lastly, the most crucial outcome of all the above steps: initiate changes in your existing marketing plans by making tweaks to the areas and redesigning the entire strategy.