Are you looking for ways to assess your Shopify business’s current performance and anticipate potential changes on the horizon? Does gaining insights into what separates you from your competitors seems to be your solution? With powerful competitive intelligence, monitoring the success of your business in real-time is now a breeze. This articles explains how understanding and leveraging industry trends can help improve performance, increase customer loyalty, and make sure that you stay ahead of the competition on Shopify.
What Is Competitive Intelligence?
Competitive intelligence (CI) is a process of gathering and analyzing data to understand the strategies, products and activities of competitors. CI primarily focuses on understanding the market behavior and marketing initiatives other companies use and how you can leverage such initiatives for your company’s benefit.
By understanding these insights, organizations can make informed business decisions that will help them better develop their products or services and respond to their competitors’ changing strategies. Fortune 500 Companies understand the importance of staying a step ahead and has turned to competitive intelligence for an edge. Around 90% have already harnessed this power in pursuit of their goals.
How Competitive Intelligence Analysis Grows Your Shopify Revenue?
Competitive analysis allows companies to compete by monitoring relevant trends and changes within the industry so they can adjust accordingly. Used correctly, competitive analysis enables a company to make better decisions and stand out from the competition while increasing their revenue. Here is how competitive analysis can grow your Shopify revenue.
If you want to excel, you need to know what your competitors are charging for their products. This way, you can price your products accordingly and remain competitive. Furthermore, you can use your competitor’s pricing information to your advantage by running promotions or discounts that undercut their prices.
2. Product Selection
You need to make sure that you are offering products that your competitors are not. This can be accomplished by offering unique products or a better selection of products than your competitors using competitive intelligence. Additionally, you need to make sure that you price your products competitively to attract customers.
3. Ad Benchmarking
In addition to pricing and product selection, another important aspect of competitive analysis is ad benchmarking. This involves keeping track of your competitor’s advertising campaigns and comparing them to your own. By doing this, you can see what is working well for your competitor and try to replicate their success. This helps you to learn from their mistakes and avoid making the same ones yourself.
4. Website Design
Make sure to design your website in a way that is superior to your competitor’s websites. You can accomplish this by having a more user-friendly design, a more visually appealing design, or a more informative design. Make sure that your website is optimized for search engines to attract more visitors.
5. Marketing Strategies
When you’re conducting a competitive analysis, it’s also important to take a look at the marketing strategies your competitors are using. What platforms are they using to reach their target audiences? What type of content are they creating? By understanding the marketing strategies your competitors are using, you can develop your own strategies that will help you grow your Shopify revenue.
How To Leverage Competitive Intelligence?
Gathering competitive intelligence is an essential step for businesses in any industry. Businesses can tap into the power of data analytics to quickly make crucial decisions. By harnessing real-time insights, companies are able to move at 5x their normal speed when it comes to strategic planning and operational optimization.
Leveraging competitive intelligence requires a thorough analysis of the current landscape, especially when it comes to understanding the strengths and weaknesses of competitors. Companies should research competitor products, processes, and policies and pay attention to the innovations they’re making in order to create new opportunities or respond to industry changes.
To leverage competitive intelligence effectively, businesses must look beyond just price points – they should analyze all aspects of a product or service, such as features and customer experience.
Even though gathering competitive intelligence may involve some upfront costs, it can help save time and money in the long run by providing guidance on where resources should be allocated for optimal performance.
Top Resources To Use for Competitive Intelligence Analysis
Proper competitor analysis is a key element in staying ahead of the game. Fortunately, there are many excellent resources available to conduct such an analysis. For example:
1. Google Alerts
Google Alerts is a free service that allows you to receive email notifications whenever new content is published on the web that contains certain keywords that you specify. This is a useful tool for competitor analysis as you can set up alerts for your competitors’ names, products, or other relevant keywords. This way, you will always be aware of any new content that they publish so that you can quickly respond accordingly.
2. Social Media Monitoring Tools
There are a number of social media monitoring tools available that helps to track what is being said about your brand or competitor on various social media platforms. These tools can be very useful for quickly identifying any negative sentiment or criticism so that you can address it accordingly. Moreover, these tools can also help you to identify any potential opportunities that you may be able to capitalize on.
3. Alexa Rank Tracking
Alexa rank tracking is a service offered by the website Alexa.com that allows you to track the relative popularity of websites. This information can be very useful for competitor analysis as it can give you an indication of how popular your competitors’ websites are in comparison to your own. Alexa also provides other useful information such as the average time spent on site and the bounce rate
In Shopify, as in any business, knowledge is power. And the more data-driven your decisions are, the better off your business will be. That’s where competitive intelligence comes in. By understanding what your competition is doing—and why they’re doing it—you can make informed decisions that help you stay one step ahead. Prefer to leave it to the experts? DEHA offers a competitive intelligence service that takes care of all the research and analysis for you, so you can focus on running your business.
Although there are a number of ways to conduct competitive intelligence, for ecommerce businesses we believe that price monitoring is one of the most important methods. By tracking prices across different channels and alerting you when those prices change, our team can help you make decisions about your product portfolio that will enhance your brand value and safeguard your margins. Contact us today to learn more about how we can help you gain a competitive advantage.