Who doesn’t love to play detective? The thrill of sneaking around in the enemy territory and getting what you need right under the enemy’s nose; there is a certain fun to it, isn’t it? Although it might be a little late to join secret services, spying on your competitor might not be the worst idea in the world, especially if you are trying to one-up them and boost your sales. One clever way to do it is through competitive intelligence.
Boosting ROI is on the top of the priority list of any online retailer. Though the unimaginable amount of bucks spent on online marketing and other advertising methods, nothing can really guarantee a spike in your ROI statements. Competitive intelligence gives you an edge over the competitor by simply giving an insight into how to the competitor is operating and what kind of marketing techniques is it applying. It helps you keep an eye out for the competition by keeping you updated with the following info-
The different prices that each competitor is offering.
Discounts that are being offered.
The different products that each competitor has.
What strategies are being used to promote the products?
Identifying if any product is out of stock.
A lot that happens in the market is because of how the consumer functions or the result of certain marketing techniques applied by the players of the game. Now imagine what were to happen if a certain product is out of stock on a competitor platform and you still have a few pieces left?
You can simply price your product at a higher price for better profits and attract new potential customers. This will not only beef up your profits but also help establish yourself in the market.
Having a good understanding of the prevailing market conditions helps you with-
Pricing is both an art and a science. It is really important to get the balance right between giving attractive prices to increase sales and setting a high price to increase profits. If you price your product at a really low price, you will sure see an increase in your sales but the profits will soon start dwindling. Knowing the different prices at which each competitor is selling their products gives you a fair advantage to price your own product in accordance with the same and increase your sales.
Giving discounts
Discounts are one thing that can help you manage your e-commerce website. Discounts are given to promote short-term sales, manage dead or excess inventories, gain new customers, reward loyal customers and gain an advantage on the competitor. For example, if your competitor is planning a huge sale, it might do you some benefit to offer desirable discount around the same time on products which are in high demand or alternately you can choose to move the excess stock from your inventory by giving discounts on products that have less demand.
Developing a strategy that can beat the competitor
The brand strategy defines how people see you, it sets you apart from the clutter in the market and leaves an impression in the minds of your potential customer base. Your brand strategy determines how you market yourselves and retain your customers. So while you go about establishing how your brand will work, a look at your competitor’s strategy might just lend you that much-needed edge.
Product selection
While your e-commerce business has a lot of parts functioning together, making it awesome, the soul of the website will be the products that are being sold there. You products define your entire business. The kind if of customer base you will have, the kind of pricing and discounts that will be given etc. Everything is revolves around what you decide to sell. So while you are still deciding on your product inventory, a look at what your competitors are selling is probably one of the most important info you can get your hands on. So let’s say your competitor has a selection of exclusive products that aren’t available elsewhere. That is your window of opportunity. Start selling the product they are selling and maybe come up with your own very exclusive products to widen your product range and attract new customers.
Do you want to boost your ROI? Get in touch with Datahut.