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The battle for the consumer: a winning recipe with the use of competitor analysis.
The better half of the market share belongs to marketplaces and online-retailers. The secret to their popularity is that they give customers a wide range of products to choose from and make shopping online an effortless experience. There are thousands of brands presented on retailers' websites which are fighting for their customers. To win this battle, you have to always be up to date and aware of your competitors' positions to be able to take immediate action. Let's look into the pros and cons of competitor analysis and why you should automate it.
What is the purpose of the competitor analysis
Content comparing. To keep up with your competitors you should understand what content they have in their product cards (e.g. the number of images and videos; whether or not they are showing the product from different angles; completeness of the text description; value and quantity of reviews; presence and completeness of technical specifications etc.). Analyzing such data about your competitors will give you an understanding of what content is missing in your product cards and what are the optimal image and review quantitites to grow sales. For instance, sales conversion will increase up to 87% if a user watches a product video.
For instance, sales conversion will increase up to 87% if a user watches a product video
You can easily get such insights and boost your sales by regularly analyzing your competitors' content and adopting their best practices.
Price comparison. Most consumers are price sensitive and search for the best available offers. To keep sales up during periods of weak demand, you have to closely monitor prices. Today it is insufficient to check the prices once a week, you would get the best results by monitoring the prices live and automatically correcting them. This would help you adjust the prices and launch campaigns in time without losing sales, or remove discounts to keep your margins high.
Monitoring sales. Knowing how much inventory your competitors have available for sale will give some beneficial insight. For example, you can find out what are the top-selling products and what marketplaces are performing better for your competitors. Based on this data, you can accordingly adjust your own sales strategy. The 24orm platform, for example, gives you insight into what sales channels are more effective by detecting the rate of stock decrease at a particular retailer.
How to gather information more efficient
In most cases, information on pricing is collected manually - a marketing or product manager conducts a research and inputs all market prices into a spreadsheet. This work is time-consuming, and the frequency of such price analysis depends on the manager's workload - some do this weekly while others do it once a month, but almost no one is capable of monitoring the prices 24/7.
Manual research? Easy. Open a merchants' page and start analyzing. It's that straightforward. Oh, and it's time-consuming too. So don't waste time on the activities that can be automated. Let your employees be more productive with other tasks, and leave the tedious manual work aside.
So don't waste time on the activities that can be automated
Сan you manually monitor 1'000 SKUs on a daily basis? Most likely not. That's why manually gathered information gets outdated quickly. To see the proper picture and avoid the human factor you should automate your market analysis.
To automate market analysis, you can develop your own IT solution, or use an existing one, such as 24orm. This platform does in 5 minutes what it would take a week for an average employee. With a click of a button, 24orm lets you adapt full-time monitoring of content, prices, reviews, availability, and much more. You will have up-to-date information not only on your products but your competitors as well.
Information is power. To win the battle for consumers in e-retail, you must have goodknowledge about your competitors. Otherwise, you won't get ahead. Whether it's your own solution or a platform like 24orm, the first to leave Excel tables behind andswitch to an automated market analysis system would be the winner in the e-battle for consumers.
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