Attention All Ecommerce owners: Here's Why Targeting Your Competitors Is Genius

In our previous post, we discussed some of the things ecommerce owners should be focusing on rather than focusing on competitors. However, focusing on competitors can have its advantages, as Jenny* - an agency owner in Melbourne, Australia, shared with us.

Targeting competitors, with the right online reporting and intelligence, can be a game-changer for your e-commerce business. If you haven't read part 1 to this series, you can do so here. However in this post we're diving deeper into the specific strategy of targeting your competitors for growth.

Why Target Your Competitors?

You might wonder, "Why would I want to target my competitors, especially if they're bigger and more established?" The answer lies in the perception of these larger businesses. People often assume that bigger companies have figured it all out. They've got the marketing budget, the experience, and the know-how. But the truth is, every business, no matter how big, has areas where they can improve.

Marketing agency owner, Jenny, told us "sometimes it really is worth spending a decent amount of effort targeting your competitors. It can really benefit smaller brands who want to grow and become known in a particular niche, other times it can be larger players wanting to fend off smaller competitors. One of our clients simply saw it as a short-cut to growth when they were getting started, and got hooked on it. Targeting ecommerce competitors for growth can be a great way to grow, but it has its risks - competitors can start to come after you, and also if your focus is only on targeting competitors, then you're more than likely missing out on a whole world of other growth opportunities which may be more cost effective."

The Benefits of Targeting Competitors

No matter the size of your business, there's always something to learn and a potential customer base to capture. By targeting your competitors, you can:

• Identify new traffic sources: Discover untapped channels that can drive more visitors to your website.
• Improve your SEO strategy: Learn from their successful SEO tactics and optimise your own content.
• Enhance your social media marketing: Analyse their social media strategies and identify opportunities to engage with your audience more effectively.
• Refine your product offerings: Identify gaps in your product line and introduce new products or services to meet unmet customer needs.
• Optimise your pricing strategy: Understand their pricing strategies and adjust your own to remain competitive.

But how do you find out what your competitors are doing? Do you go to your marketing agency, if you have one, or do you do your own research? Sometimes the best outcome is by going to a reporting specialist who will custom build you a report you can then action with your teams and agency. 

The Power of Custom Reporting

One of the most effective ways to target your competitors is through custom reporting. These reports involves a detailed analysis of competitors and how they get their traffic, the blog and social posts getting the most engagement and crucially the customer demand they are satisfying and not satisfying:

• Traffic sources: How are they acquiring traffic? Is it organic search, paid advertising, social media, or other channels?
• Brand awareness: How strong is their brand recognition?
• Areas of opportunity: Where are their weaknesses? Are there gaps in their product offerings, customer service, or marketing strategies?

By understanding your competitors' strengths and weaknesses, you can identify opportunities to steal their traffic, social media followers, and brand recognition.

The Risks and Rewards

While targeting competitors can be a highly effective strategy, it's important to be mindful of the potential risks. Engaging in aggressive competitive tactics can create a retaliatory environment and may not necessarily grow the overall category. Additionally, it's crucial to attract new customers in a sustainable way. Big discounts and unsustainable promotions may not lead to long-term loyalty.

It is worth keeping an eye on competitor activity however as your competitors may already be targeting you, and by not taking proactive steps to protect your market share, you risk losing your customers and revenue.

In conclusion, targeting your competitors can be a powerful strategy for e-commerce businesses of all sizes. By leveraging custom reporting and focusing on areas where your competitors may be falling short you can steal traffic, social media followers, and gain brand recognition. Remember though to balance aggressive tactics with sustainable growth strategies to ensure long-term success.

Editors note: Jenny is an agency owner in Melbourne who spoke to us on the condition we change her name.