Do you pay attention to your competition?

If not, you’re losing money.

For whatever reason, in recent years, it has become trendy for startups to declare their disdain for competing. They like to emphasize how they are “focused on their own mission” instead. As if their business becomes a more noble pursuit.

Well, that’s not the case. In fact, it’s a bit tone-deaf.

Because here’s the truth: while you might not pay attention to the competition, your prospective customers are. They are comparing you to the other options out there. And if you’re not competing, you’re losing.

Business is All About Competition, Stop Saying Otherwise

Business is competitive, and that’s what makes it hard. If it was easy, then everyone would have a successful startup, right?

Nothing irks me more than when I hear people say otherwise. It’s a soft mentality that doesn’t put dollars into the bank. I don’t care what industry it is, everyone is competing for a certain segment of customers. Yes, that customer pool may be incredibly large, but at the end of the day, you all want the same thing: for people to choose you.

The point here is that you have to meet your potential customers where they are at, and not the other way around. They are searching and comparing. They want to know how you differ and why you’re the best option. The only way you win is by competing. You need to understand the competition — the better you do, the better your sales.

I grew my software company by continually analyzing my competitors, seeing what they did well, and then competing with them on their strengths.

If they had a YouTube channel, I had a better one.

If they have a well-designed landing page, I had a better one.

The process never stopped.

And now as a coach for founders, I do the same thing with them and their respective markets. The result? Quicker growth.

It really does pay to pay attention.

More Than Just Watching

Keeping an eye on your competitors is not about finding ways to copy them. It’s about understanding them to the core.

This is where conducting a competitive analysis becomes crucial.

You aren’t just skimming through their website or glancing at their prices. You’re diving deep into their strategies, customer feedback, and market presence.

Start by dissecting their product offerings. What features are they flaunting? How does it relate to yours? Next, shift to customer perception. Scour through reviews, social media comments, and forums. This is raw intel on what’s clicking and what’s missing the mark.

It’s not just about their strengths, but also about their weaknesses, which can be your opportunities.

Don’t forget about metrics, either. Traffic sources, engagement rates, customer acquisition costs, and churn rates — these numbers tell tales. They offer a clear picture of where they stand and the trajectory they’re possibly taking.

Use this information to fuel your product development and market positioning. Maybe there’s a feature gap you can fill or a market segment they’ve overlooked.

Being aware of your competition equips you with the knowledge to make informed decisions, not just random shots in the dark. It’s about strategic positioning, not just blind competition.

Using Competitive Analysis to Accelerate Growth

The real power of competitive analysis lies in its ability to shape your strategic decisions. When you dissect your competitors’ strategies, you’re not just gathering information. You’re gathering ammunition for your own growth.

Let’s break it down with a real-world example.

When running my software company, I noticed that one of my competitor’s customers frequently complaining about the lack of an intuitive dashboard. Sensing an opportunity, I revamped my own product to include a user-friendly, feature-rich experience that was unseen to date in my space.

The result?

A significant uptick in customer acquisition and retention, simply because they filled a gap their competitor left open. In fact, sales went up by 22% and stayed there going forward.

By staying on top of my competitors, I did not have to change course with every move they make. Instead, I made calculated, informed decisions that gave my product a unique edge and a clear voice in a crowded marketplace.

This approach works because it turns competition into a growth catalyst, pushing you to innovate continuously and stay ahead of the curve.

Customer Perception and Choice

Perception is reality.

I’ve lived by that saying for years because I find it to be true in any facet of life, including business.

Your customers are bombarded with choices, and each one tells its own story. How they perceive your brand amid the competitive noise is crucial. They’re not just looking at what you offer, but they’re weighing it against your competitors. It’s a constant battle for attention, and your value proposition is your weapon.

Aligning your value proposition with customer preferences and expectations isn’t just good business, it’s survival. It’s about understanding what they value most. Is it innovation? Customer support? Cost-effectiveness? Whatever it is, your product needs to echo these preferences loud and clear.

As I grew my own company, I came to realize that my customers valued responsive customer support over extensive feature sets.

For a number of years, part of my value proposition was to highlight our top-notch customer service and support system over the competitors. At the time, my competition would reply within 24 hours to submitted tickets. Me? Around one to two hours for the initial response.

This helped me to create a loyal customer base, and also attracted new customers who were tired of the impersonal support from my competitors.

It Pays to Stay Top-of-Mind

Another strategic play that works very well is any market is making sure that your brand, or product, is always in the conversation.

This could mean consistent content marketing that educates and informs, regular updates (and update announcements) that keep your product fresh, or engagement strategies that keep the conversation going.

The goal here is not to just communicate, but to over communicate. Create touchpoints that keep your brand in the customers’ thoughts, not as a passing mention, but as a go-to solution.

Beyond just maintaining visibility, staying top-of-mind is about creating a lasting impression. This requires not only consistent messaging, but also delivering value that resonates with your audience. It’s about understanding their pain points, desires, and interests, then tailoring your communication to address these aspects effectively.

For example, incorporate storytelling in your marketing, where your product isn’t just a tool, but a key player in the success stories of your customers.

One way that I did this when running my software company was by showcasing testimonials, case studies, and user experiences that highlight the transformative impact my product had on their business. I did this using live interviews with content repurposed for YouTube, the blog, and newsletter.

By showing a variety of case studies, my prospective customers could identify with the success story. And I made sure that every success story was used (and re-used) across different channels, and multiple times.

Your message might not to “stick” right away. Keep emphasizing your value, and in different ways, using different methods.

Embrace Competition and Grow

Embracing competition is essential for business growth, pushing startups towards innovation and constant improvement.

Viewing competition as a motivator rather than a barrier can lead to significant enhancements in your product and marketing strategies. Pressure makes diamonds. Startups would do well to embrace this mindset.

Balancing competitive awareness with a mission-focused approach is key, ensuring that your strategies are not only driven by market dynamics but also aligned with your business vision. This balance fosters a resilient, innovative, and customer-focused business environment and is much more likely to resonate with your prospective customers.

So don’t run from the competitors. Jump into the game. It’s the only way you’ll figure out how you win.

Hey, thanks for reading!

I’m Justin — I can help you to grow your profits.

Prior to coaching, I was the founder and CEO of an edtech startup, achieving a respectable 32% YoY growth and 76% profit margin over eight years before eventually selling.