Study What Competitors Are Actually Offering
Do not stop at the homepage.
Try to understand what the customer actually receives.
Look at:
- products,
- service packages,
- features,
- deliverables,
- guarantees,
- support,
- onboarding,
- subscriptions,
- free trials,
- bonuses,
- customization,
- turnaround times,
- and anything else included in the offer.
Then ask:
What exactly is the customer buying?
Two companies may appear to sell the same service while offering very different experiences.
For example, two marketing businesses might both offer “social media management.”
One includes:
- 12 posts per month,
- captions,
- graphics,
- scheduling,
- monthly analytics,
- and a strategy call.
Another provides:
- four posts,
- templates,
- and automated scheduling.
Those are not really identical offers.
Understanding those differences helps you see what the market is already providing and what customers may expect.
Look for repeated features
If nearly every serious competitor includes the same feature, ask why.
It could indicate that customers expect it.
For example, if nearly every scheduling product offers automated reminders, launching without reminders may put your product at a disadvantage.
Do not automatically copy the feature.
Find out whether customers actually value it.
But repeated features deserve investigation.
Look for unusual features too
An unusual feature can tell you something different.
Perhaps one competitor:
- offers same-day service,
- specializes in beginners,
- provides human support,
- charges a flat fee instead of a subscription,
- serves one specific industry,
- or removes a complicated step other competitors require.
Ask what problem that difference is solving.
That may reveal an important customer need.
Compare Competitor Pricing
Pricing can provide clues about how the market works.
Record:
- entry-level pricing,
- premium pricing,
- subscriptions,
- one-time fees,
- free plans,
- setup fees,
- add-ons,
- bundles,
- discounts,
- and whether pricing is public at all.
Do not assume your goal should be to become the cheapest.
A lower price can sometimes make an offer attractive.
But it can also reduce margins, make customer acquisition harder to afford, and create expectations that are difficult to sustain.
Instead, ask:
What does the customer appear to receive at each price level?
Suppose competing services charge:
- $49,
- $99,
- $249,
- and $500 per month.
Do not simply average those numbers.
Investigate why the prices differ.
Perhaps the $49 product is mostly automated.
The $99 option might include templates and support.
The $249 service could involve personalized work.
The $500 offer might include a dedicated account manager.
Price makes more sense when you understand the offer behind it.
Competitor pricing does not tell you exactly what you should charge.
It gives you context.
Later, you still need to determine whether customers will actually pay enough for your offer to make the business worthwhile.
That is the focus of the next Stage 1 article.
Study How Competitors Position Themselves
Positioning is the reason a business wants a particular customer to choose it instead of another option.
Pay attention to the language competitors use.
What do they emphasize?
For example:
- cheapest,
- easiest,
- fastest,
- premium,
- personalized,
- automated,
- beginner-friendly,
- expert-level,
- local,
- specialized,
- convenient,
- secure,
- all-in-one,
- done-for-you.
Look at:
- homepage headlines,
- product descriptions,
- advertising,
- social media bios,
- email signup pages,
- sales pages,
- comparison pages,
- and frequently asked questions.
Then ask:
What is each competitor trying to be known for?
You may discover that everyone is competing on the same message.
Perhaps ten companies all claim to be:
“The easiest solution.”
That does not necessarily mean you should become number eleven.
It may mean another valuable position is available.
Read Customer Reviews for Patterns
Competitor websites tell you what businesses want customers to believe.
Customer reviews can show you what people actually notice.
Look at reviews on platforms appropriate to the business, such as:
- Google,
- app stores,
- marketplaces,
- software review sites,
- retailer websites,
- social media,
- industry directories,
- forums,
- and other independent sources.
Do not focus only on star ratings.
Read the words.
Positive reviews can reveal what customers value most.
Negative reviews can reveal where expectations are not being met.
Look for repeated comments such as:
- difficult setup,
- slow customer support,
- confusing pricing,
- too many features,
- missing features,
- unreliable service,
- poor communication,
- expensive upgrades,
- difficult cancellation,
- long turnaround times,
- limited customization,
- or a complicated learning curve.
One angry review proves almost nothing.
Twenty customers mentioning the same problem is much more interesting.
Likewise, repeated positive comments can identify things customers strongly value.
If people repeatedly praise a company’s quick response times, personal service, or simplicity, those may be important buying criteria in that market.
Do not treat complaints as automatic opportunities
A complaint does not necessarily mean a profitable gap exists.
Customers complain about many things they would not pay extra to improve.
Suppose customers complain that a $10 product does not include 24-hour personal support.
Providing that support may make customers happier.
It may also make the business financially impossible.
Research should identify possibilities.
You still have to evaluate whether solving the problem makes economic sense.
Experience the Buying Process When Possible
One of the best ways to understand a competitor is to experience the business the way a customer does.
You do not need to misrepresent yourself or pretend to be a customer when you are not.
But you can observe publicly available parts of the experience.
Try things such as:
- browsing the website,
- reading FAQs,
- watching demonstrations,
- signing up for legitimate free trials,
- subscribing to newsletters,
- viewing onboarding materials,
- reading help documentation,
- following social accounts,
- and examining the checkout process.
Pay attention to friction.
Is it immediately clear what the business sells?
Can you understand the pricing?
Does the offer feel simple or complicated?
Can you tell who the product is for?
How easy is it to get started?
What questions remain unanswered?
Sometimes the opportunity is not a completely new product.
It is a better experience around an existing solution.
Look at How Competitors Reach Customers
A good business needs more than a useful product.
It needs a realistic way to reach buyers.
Study where successful competitors appear.
You might find them using:
- Google search,
- local search,
- YouTube,
- Instagram,
- TikTok,
- LinkedIn,
- email,
- partnerships,
- affiliates,
- marketplaces,
- paid advertising,
- trade shows,
- referrals,
- industry associations,
- or direct outreach.
You are not trying to reproduce every marketing channel they use.
You are trying to understand how customers in the market discover solutions.
If nearly every successful competitor depends heavily on local search, that tells you something.
If customers discover products mainly through YouTube demonstrations, that tells you something else.
If the market depends on personal referrals, your go-to-market strategy may look very different from a business where customers routinely search Google and buy immediately.
Use Market Data When It Is Relevant
Competitor websites tell you about individual businesses.
Sometimes you also need a wider view.
For U.S. businesses, the Small Business Administration’s business-planning resources can help you think about market saturation, pricing, indirect competitors, market conditions, and competitive advantages.
The U.S. Census Bureau’s small-business data resources can also help when geography and industry matter.
This can be particularly useful for local businesses.
Suppose you are considering opening a specialized service business in a particular area.
Knowing that three competitors appeared in your search results is useful.
Knowing roughly how many similar establishments operate in the surrounding market provides better context.
Market data will not make the decision for you.
It helps prevent your research from being based entirely on whichever businesses happened to appear first in a search.
