Since more and more start-ups join the E-commerce industry competition has increased manifold. For an online business achieving E-commerce channel intelligence has become crucial who aim to succeed in the competitive market of today. Once you understand the competitive landscape an E-commerce business is able to take an informed decision and position itself strategically ahead of the curve.
The Reasons Why Competitive Intelligence Is Necessary For Online Business
Studies indicate that big data along with analytics software for E-commerce have helped companies to achieve competitive intelligence. Competitive intelligence is a set of practices that help your online business harness the power of big data and analytics. Below are some of the benefits of competitive intelligence in the E-commerce sector
Enhanced Product Offerings
The moment you go on to analyse competitors’ data it allows E-commerce companies to identify the gaps in the product offerings and make informed decisions about which product to continue and which to abandon. An example is that an online cloth retailer may figure out that their competitors provide a wide range of eco-friendly products that may prompt them to expand their product line.
Optimized Pricing Strategy
By taking stock of the pricing strategy of your competitor, an online business may go on to establish an online pricing strategy which balances competitiveness and profitability. A consumer electronics company may figure out that the company is providing free shipping above a certain threshold. When you have such data an E-commerce campaign manager may implement a series of strategies to remain competitive.
Better Marketing Efforts
Competitive intelligence enables an E-commerce business to identify successful business strategies used by its competitors. They can implement it in their own campaigns to arrive at successful results. A cosmetic store may find that its competitor is generating a substantial amount of revenue with the aid of online influencer partnerships. An example that emerges is that of YouTube and you can adopt a similar strategy.
Quality Customer Experience
Figuring out the customer experience offered by competitors allows E-commerce to target areas of improvement in their own experience strategy. An example is when an online store finds that its competitor provides a 3d visualization to enhance their customer experience. This may force the company to incorporate such a strategy on its mobile app or its website.
Competitive intelligence reveals emerging technologies along with interesting trends. This enables a business to innovate and stay ahead of the competition. You may watch out for the technologies that are being used by your competitors and hence improve or enhance your technological capabilities accordingly. The reason why this solution is effective is whatever solutions that you direct your company it fits into use in a perfect way.
To sum up things the data intelligence and inputs should not be merely used to copy competitor initiatives and practices. Though in some cases or be it data can also be used to achieve something better. So it is important that you consider the improvements or go on to incorporate your own personal touch.