Every small business operates within a competitive environment. Whether you run a corner cafe, an online shop, or you’re a freelance web designer, you need to know who your competitors are and what they’re doing.
Competitor research isn’t about copying others—it’s about gaining valuable insights that can inform your own business decisions. Why would you not want to learn as much as possible from others in your industry? By taking an interest in what others are doing, you can spot gaps in the market, identify trends, and better understand what customers expect. Without this knowledge, you’re operating in isolation, effectively with your eyes shut.
Be a detective
Think of competitor research as being a detective. You’re gathering clues, analysing patterns, and drawing conclusions that help you understand the bigger picture. This detective work doesn’t need to be covert or underhanded—much of it involves tracking down publicly available information and noting what is working and what isn’t in your sector.
Good detectives are observant. They look beyond the obvious and connect dots that others might miss. Approach competitor research with this mindset, and not only will you make it more fun, but the ideas will start to flow.
Becoming a fan of your industry
Effective competitor research starts with a genuine interest in your industry and the desire to be a key player. Being passionate about your trade means you’ll naturally stay informed about new developments, innovations, and shifts in customer preferences. Rather than viewing competitor research as a chore, see it as part of being an engaged member of your industry community.
Successful business owners are often the biggest fans of their industries. They listen to podcasts, get newsletters, read trade publications, attend industry events, follow relevant social media accounts, and genuinely care about advancements in their field. By doing this, you’ll become an expert, and by sharing that expertise to help others, you’ll gain great exposure for yourself and your business.
Methods for staying ahead of the competitor curve
Pay them a visit
The most important thing you can do, and one that’s often overlooked or people don’t think they have the time for after they’ve started their business, is to make sure you keep using other businesses in your industry. Experience your competitors’ products or services firsthand.
- If you’re a chef – eat out at the latest openings.
- If you’re a freelancer – use other freelancers and pay attention to their processes.
- If you’re a yoga teacher – go to other yoga classes, retreats and workshops.
Understand the end-to-end experience they provide and note what impresses you and what could be improved (don’t we all love critiquing?). This could be seen as mystery shopping, but why be secretive about it? – be a fan.
Social media snooping
Allow yourself down a (targeted) rabbit hole. It’s so satisfying to snoop on social where nobody can find you out, and with this, you have a legitimate business reason not to stop the scroll (although don’t get carried away or obsessed with it – set a timer and keep it positive and healthy). Follow your competitors on social platforms to see how they communicate with customers, what promotions they run, and how their audience responds. You don’t even have to be sneaky; give them support on social, and you’ll get it back.
Website analysis
Regularly review competitors’ websites to track changes in messaging, product offerings, or pricing strategies. Tools like SEMrush or Ahrefs can provide insights into their digital marketing efforts and SEO strategies.
Customer feedback and reviews
Listen to what customers say about your competitors. Online reviews, social media comments, and direct conversations can reveal valuable information about strengths and weaknesses in your market.
Industry events
Trade shows, conferences, and networking events offer opportunities to see what competitors are showcasing and discuss industry trends with peers.
Email newsletters
Sign up for competitors’ email newsletters to stay informed about their promotions, new products, and content marketing efforts.
Case study: competitor research for a cafe
Let’s consider how the owner of a small cafe might conduct competitor research and then create the equivalent for your own business, whether you have premises, products, or you’re service-based.
Sarah runs The Morning Brew, a cafe in a medium-sized town. To better understand her competitive landscape, she takes the following steps:
Visits competing cafes: Sarah regularly visits other cafes in her area and further afield, ordering different items and intentionally noting details like:
- Menu variety and pricing
- Quality of coffee and food
- Ambiance and decor
- Customer service approach
- Busy periods and customer demographics
- Special offerings (vegan options, gluten-free items)
1. Follows competitors online: She follows local cafes on social media and signs up for their newsletters to track promotions and events.
2. Talks with suppliers: Sarah chats with her coffee bean supplier about trends they see in other cafes they serve.
3. Reviews customer feedback: She regularly checks Google and TripAdvisor reviews of other cafés to identify common complaints or praise.
4. Attends local food events: Sarah participates in community food festivals and local business association meetings to network with other cafe owners and food service professionals.
Through this research, Sarah discovered that while several cafes offered excellent coffee, none provided healthy breakfast options for early commuters. She also noticed that competitors’ evening trade was minimal. This led her to expand The Morning Brew’s healthy breakfast menu and extend hours for the morning rush while closing earlier in the evening—decisions that increased profits by focusing on an underserved niche.
Taking action
The true value of competitor research comes from applying what you learn. Here’s how to make the most of your findings:
Identify gaps and opportunities
Look for needs that competitors aren’t meeting or customer segments they’re overlooking. These gaps represent opportunities for your business.
Benchmark your performance
Use competitors’ standards to evaluate your own business objectively. Where do you excel, and where could you improve?
Differentiate your offering
Understanding what competitors do well helps you develop unique selling propositions that set your business apart.
Anticipate market shifts
Recognising patterns in competitor behaviour can help you predict and prepare for changes in your industry.
Refine your marketing strategy
Information about competitor messaging and promotional tactics can inform more effective marketing for your own business.
Things to consider
While competitor research is essential, it’s important to conduct it ethically:
- Respect confidential information and trade secrets
- Be transparent when interacting with competitors or their staff
- Don’t misrepresent yourself to gain information
- Focus on learning rather than copying
- Use the information to improve your offerings, not to disparage competitors.
The most effective competitor research isn’t a one-time project but an ongoing practice integrated into your business operations. Set aside time monthly to review competitor activities and annually for a more comprehensive analysis. Learn to look at others objectively, notice if feelings of defensiveness come up and explore why they might be there. Try to remain positive and supportive of others’ success, not jealous; after all, ‘a rising tide lifts all boats.’ Enjoy the process, celebrate your industry, and look forward to the time spent working strategically on your business, not in your business.
