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What are the Benefits of Using Competitive Intelligence?

Are you struggling to develop impactful new products for your eCommerce site? Perhaps your marketing strategies are falling flat for reasons you don’t quite understand? We’ve got great news for you – competitive intelligence could utterly transform your business and facilitate unprecedented growth!

What are the Benefits of Using Competitive Intelligence?

Are you struggling to develop impactful new products for your eCommerce site? Perhaps your marketing strategies are falling flat for reasons you don’t quite understand? We’ve got great news for you – competitive intelligence could utterly transform your business and facilitate unprecedented growth!


Okay, we understand that the name sounds a little dry and (dare we say it) dull. However, competitive intelligence could hold the key to improved product development, better brand positioning, and enhanced customer engagement for your business. 


Over 90% of businesses currently invest in competitive intelligence. In the dog-eat-dog world of eCommerce, failure to get on board with this trend could be detrimental to your sales figures. To help you get to grips with competitive intelligence, therefore, we’ve put together a quick guide to its benefits. 


First things first: What is competitive intelligence?

Competitive intelligence is a market research strategy designed to uncover actionable eCommerce data about different brands within your industry. The metrics you decide to track will depend on your market niche and your company’s primary pain points. 


The ultimate goal of using competitive intelligence is, of course, to generate useful data that can be harnessed to make smart business decisions. Helpful data points to analyze include, but are by no means limited to:


  • Market share
  • Prices
  • Social media engagement
  • Content production
  • Customer profiles
  • New product launches


How can I create a competitive intelligence report?


There is no single way to collect actionable eCommerce data, and some companies may be easier to research than others. Here are a couple of tried-and-tested tactics to help you get started:


  • Keep it simple with Google: Don’t underestimate the power of the humble Google search. Many eCommerce brands publish heaps of public information in a bid to attract new customers and enhance their search engine optimization (SEO) strategies. With a simple web search, you could unearth valuable information about new product launches and initiatives, as well as candid customer reviews. One-star reviews are a great resource for learning about what NOT to do when designing new goods and services.
  • Enlist third-party help: While search engines such as Google represent excellent competitive intelligence tools, they may not produce the granular insights you desire. This is where third parties such as Luz can help. A growing number of businesses offer intelligence-gathering services, using complex databases and direct contact with relevant individuals to produce valuable data. While you could conduct this kind of research yourself, soliciting help from a third party will ensure you don’t accidentally break any privacy laws.


What are the benefits of competitive intelligence? 


Still skeptical about the value of competitive intelligence? These amazing advantages are sure to change your mind:


1. It enhances the product development process


Even the most creative of product designers can’t read customers’ minds. The only way to develop winning products that genuinely improve customers' lives is to learn about their needs and desires using competitive intelligence. Check out your competitors’ latest products and reviews to ascertain what they’re doing right and where they’re going wrong. Once you’ve ascertained what your audience members want and need out of eCommerce brands, you can start designing products they won’t want to live without. 


2. It will help you discover your unique selling points (USPs)


Effective branding is all about finding your unique selling points and shouting them from the rooftops. Whether you’ve invented a new technology or boast super-efficient delivery services, your USPs should be sprinkled throughout your marketing emails, paid ads, blog content, landing pages, and more.


Of course, you must ensure that your USPs are truly unique before you start showing them off. Overselling certain aspects of your business could breed distrust in your all-important customers. 


Fortunately, it’s really easy to ascertain what your competitors are selling, thanks to the wonders of Google! When scouring competitor websites, we recommend heading straight to product descriptions, homepages, and mission statements to ascertain their USPs. 


3. You could improve your SEO


Did you know that 68% of online shoppers use search engines to find information about products they want to buy? As such, it’s really important you scramble your way to the top of those all-important results pages. 


Competitive intelligence could help you hone your SEO strategy by revealing the best ways to please Google’s algorithm. Start by figuring out which keywords are popular within your industry niche using a tool such as SEMRush. Then, take a look at the top-ranking sites for these words, accounting for the following factors:


  • Site URL structure: What are the best URL structures used by competitors? How can you emulate winning strategies?
  • Coding structure: Which coding languages are used in top-ranking sites?
  • Pages titles and meta descriptions: Page titles and meta descriptions are often overlooked by marketers, but they could seriously impact your search ranking!
  • Navigational issues: How easy are top-ranking sites to navigate? Search engines prioritize eCommerce sites that are easy to use and provide smooth user experiences. 


4. It helps identify gaps in your hiring processes


Wondering why your turnover is so high? Don’t rely on employee surveys or other kinds of internal data to fix your hiring practices. Learning more about who your competitors are hiring and why could help you improve your company culture and retain top talent. Check out jobs listings and job review sites to learn more about the state of the hiring market in your sector. 


5. It could warn you of potential threats


The world of eCommerce is constantly evolving, meaning business owners often find themselves outflanked by new marketing strategies and product development. While you may not be able to predict the future, competitive intelligence could alert you to up-and-coming trends. Once you spot a threat on the horizon, you can quickly start adapting your business strategies to prevent disruption. The best places to discover potential threats are social media platforms, press releases, and online databases. 


Need help with your competitive intelligence research? Luz has got you covered!


If you’re keen to start growing your business with competitive intelligence, don’t hesitate to reach out to Luz today. We provide eCommerce brands with valuable data from over 150,000 sites, allowing clients to supercharge their product development and marketing efforts. 

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