Small Business Competitors: Identifying 4 Types

Knowing exactly who your competitors are is easier said than done, especially as there are four separate types that should be identified. As we explore these four types and what they mean for your business, ensure your operation is backed by an Indianapolis General Liability Insurance policy.

Direct competitors.

These are the obvious ones- the companies and stores that offer the same products and services as you do. These businesses, especially local ones, can be easily identified with a simple online search.

Indirect competitors.

These are businesses that offer the same product or service as your own, except they operate in a larger area or offer a larger product range.

Replacement/perceived competitors.

According to The Hoth, replacement/perceived competitors are harder to identify. They don’t necessarily offer the same product or service but do compete for the same resources or customer base. Audience research is the key to identifying these, to see where crossover interests lie. Social listening tools like Hootsuite and Social Studio are useful, as are customer surveys. Google Consumer Surveys and Google Analytics affinity groups are good places to start.

Keyword competitors.

These competitors are indirect, but they rank for the keywords that you are striving for. These could be major big box companies, web pages, etc. While they aren’t directly preventing customers from putting cash in your pocket, they prevent you from reaching the highest search rankings. Once your competitors are identified and understood, you can start to tailor your marketing approach to compete with them. The more knowledge you have, the better equipped you’ll be to boost your business.

 

About Walker & Associates Insurance

If you’re not sure if your insurance is sufficient, it’s smart business to have your risks evaluated by professionals you can trust. Since being founded in 1960, Walker & Associates has embraced a “service is first” philosophy. Our team is focused on ensuring that each client receives individualized guidance to preserve their assets and control their expenses. Our strong relationships with international, national, and Indiana insurance companies allow us to negotiate the best coverages, terms, and pricing for our clients. Contact us at Walker & Associates Insurance, (888) 760-7292, for all of your business and personal matters.