Last Updated on January 11, 2022 by admin
Competition is the key to innovation. Conducting a fintech marketing competitive analysis can provide knowledge about what your competitors are doing to drive awareness of their products and services. In other words, it can inform your own fintech marketing approach.
Companies that don’t analyze what their competitors are doing with marketing risk getting left behind. Fintech companies occupy a rapidly changing sector. Companies need to stay vigilant to new trends and exploit new technology to offer new services and innovations for consumers.
Gaining insights on what other companies are doing through a fintech marketing competitive analysis is vital for business growth and gaining market share.
In this article, we will walk you through how to do a fintech marketing competitive analysis and explore what it can do for your business. We’ll discuss:
- What is a Competitive Analysis?
- Why is it Important to Conduct Fintech Marketing Competitive Analysis?
- How to do a Competitive Analysis
What is a Competitive Analysis?
The competition among fintechs is fierce. Constant advances in technology and the demands of savvy consumers make it a rapidly evolving field. Conducting a fintech marketing competitive analysis is a form of market intelligence gathering.
Gathering intelligence means conducting in-depth research about your competitors and their businesses, including:
- Products and services offered
- Business model
- Sales performance
- Brand awareness amongst consumers
- Marketing strategies
- Gaps in the competitor’s capabilities
Why is it Important to Conduct Fintech Marketing Competitive Analysis?
There are several reasons which make competitive analysis important for your business:
- Catching up with industry trends — Because fintech is such a rapidly changing industry, it’s critical for businesses in that sector to stay informed about new trends and to make changes to strategy as necessary.
- Review your benchmarks — It’s critical to keep an eye on important marketing metrics to evaluate performance over time. While understanding your own benchmarks is important, it can be helpful to get a sense for how your competitors are performing, too.
- Avoiding mistakes — If you’re in business, you’re going to make mistakes. The goal is to make small mistakes that help you learn and to avoid big mistakes that can impair or inhibit your growth. Learning from your competitors’ experiences can provide valuable insights into your company’s next best move.
How to do a Competitive Analysis
Analyzing your competition takes time and diligence. There are many aspects to cover, and they might seem overwhelming. But with the right plan and marketing team, you will be able to uncover hidden secrets to give you the edge.
Here are several steps you can follow to conduct an in-depth fintech marketing competitive analysis for your company:
1. Identify Your Competition
The first and obvious step is to find out who your competitors are. When identifying your competitors, consider the following:
- Use search engine results to find similar questions about products you offer
- Look at reputable statistics about market share in the fintech sector
- Identify which other brand your target consumer use when conducting surveys
2. Examine Competitors’ Digital Properties
Exploring a competitor’s services, website, and mobile apps gives you many insights. Exploring their digital properties can provide information on how you compare across multiple levels, including products, services, pricing, content, and user experience. You’ll also get detailed information about their brand value propositions and business models.
Once you’ve gathered extensive information in those areas, you can also identify where gaps exist in those areas as well. This is a critical consideration as those gaps present opportunities for differentiation.
3. Use a SWOT Analysis in Your Fintech Marketing Competitive Analysis
One of the most common business plan methods is a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. After understanding what your competition offers, you need to ask questions about your SWOT analysis:
- What stands out from the brand?
- Where do they achieve the best results?
- What are their marketing best practices?
- Which areas in their business need improvement?
- Does the competitor pose a threat to your market share?
- Where can your company outperform them?
4. Get a Sense for Customer Satisfaction
Looking at customer reviews and feedback gives you critical insights into why consumers purchase from that particular company. You can examine how the competitor responds to customer queries or complaints and how they handle consumer relations.
Social media accounts can be helpful for this part of the analysis. Browse your competitors’ social media accounts to see how they interact with customers and respond to inquiries. Other things to pay attention to include:
- Analyses the company’s responses to queries
- Browse hashtag usage
- Look at other brands consumers like to engage
- Study the kinds of visuals or videos they upload
5. Evaluate User/Customer Experience
To gain the best insights into your competition, put yourself in the consumer’s shoes. This allows you to garner valuable insights about how a company is perceived by their (and your) target audience. Try out demos and free trials to get a thorough sense of how your competitors operate and serve customers from start to finish. Questions you may want to consider when you do this include:
- How easy is it to navigate the user interface on the website and/or mobile app?
- How well do the chatbots operate?
- What are the data management and analytics features?
- What is their product range? Do they offer a very niche or broad selection?
- How good are the security features?
The key to surviving and thriving in the bustling fintech landscape is to know your competition. Those that are not cognizant of how their competitors are operating risk falling behind and losing market share. Conducting a fintech market competitive analysis can provide the data and insights you need to differentiate and grow.