Learning from the Competition

Whether you’re a restaurateur, lawyer or business owner, there’s likely a great source of industry insight just waiting to be tapped into… and it’s free! We’re talking about the practices of other businesses in your field, of course. Observing your competition is a fantastic way to stay up to date with customer preferences, learn to streamline tasks, and make your business more popular (and profitable!).

Just how can you do that? Here are a few basics you can try now:

Look at the advertisements of successful businesses… and unsuccessful ones.

Without looking at financial reports and getting into heavy research, simply observing the advertisements of your competition can help you and your business immensely. Unless a competing business relies completely on word of mouth, you can bet that much (if not most) of their clients are drawn in with a variety of strategically placed advertisements. Check your local paper, area bus benches, commercials, online marketing… look everywhere!

Don’t solely look at the advertisements and marketing material for extremely successful businesses—look at the ones for less successful ones as well. If a particular firm is doing well in your community, you can probably attribute much of that success to good advertising—and if another firm is underperforming, their ads may be a telltale sign of that as well.

While you can’t completely attribute the success or failure of a business to its advertisements, this is definitely a great (and easy) place to start!

Pay attention to ratings and reviews.

Don’t be fooled by your first impression of a competing business—because customer feedback, ratings and reviews may tell a different story. Visit local websites to browse through reviews that detail what a competing business in your niche is doing right or wrong. These reviews are by no means the absolute authority on a business… but they can give you a good idea of where your client base stands on important aspects of the goods and services you offer.

Also be sure to pay attention to the verbal feedback your own clients may offer. Never underestimate the value of a client who’s switched over to you from a competing business, and always listen for why they might have done that.

Network.

One of the best ways to stay current in your industry is to network and get involved in community programs, local commerce groups, and yearly events like conventions and workshops. These are places where likeminded business owners gather to share what works for them and what doesn’t—which is much easier than trying to find everything out on your own! You want to know what practices successful businesses in your niche use, what industry tech they’ve taken advantage of, and more… don’t leave these to guesswork!

When it comes to learning from your competition, always remember to take what you’ve learned and make it unique to you and your business. There’s no such thing as a perfect formula for every business—but there are good practices, ideas and trends we can all take advantage of!