Competitive Intelligence
for Online Businesses:
Analyze the competition!
Web Your Name®.
Mark The Web.™

Rarely will you have zero competitors in any online business you start. Indeed, it is quite likely that by the time your online business is launched, your competitors are already aware of it and have researched your products. Therefore, part of your research, when planning a new online business, should be to know who your competitors are and how much of a threat they pose to your business – think of this exercise as competitive intelligence, which is, ‘the art of staying one step ahead of the competition by gathering information about them.'

Competitive intelligence will allow you to analyze your competitors' unique selling propositions (‘USP'). If you discover that you and your competitors share the same USP, do further research to modify your USP; try to improve your product so that what you offer is something unique to potential customers. For instance, if you and your competitors are in the business of selling flowers online, you might consider offering a special discount for customers who sign up for a long-term contract with you. In addition, you might find that your competitors have overlooked a portion of the market that you're targeting. This is your chance to capitalize on the opportunity potential for sales that your competitors have ignored.

The following suggestions show you how to obtain such vital intelligence about your competitor:


Become your competitors' customer.

spy vs spy competitive intelligence business spying competitor smart

One of the most intelligent ways to analyze and monitor your competitors is to become their customer. No doubt, the intelligence you gain from ‘being on the inside' far outweighs any money you spend becoming your competitors' customer. A word of caution: when you become your competitors' customer, keep your identity a secret while you consider the following issues:

  • Was it easy to place your order with your competitors?

  • What was the level of after-sales services provided by your competitors?

  • Have you been automatically subscribed to your competitors' online newsletters? If so, are these online newsletters useful?

  • Are your competitors using their newsletters to market their other products?

Many online business owners who have become customers of their competitors have reported that, at times, their competitors do not offer after-sales services at all; alternatively, the after-sales services offered are not up to par. These online business owners have used this intelligence to improve the quality of their own after-sales services and find that they are never caught off-guard by any new products their competitors offer. Most rewarding is that, by acting on such intelligence, these online business owners have seen their own sales soar.


Monitor the Internet

Maintaining a high organic ranking requires constant site monitoring. All online business owners face dissatisfied customers at some stage of running their businesses. As such, before you launch your online business, prepare an action plan to deal with unsatisfied customers who might not be satisfied with your products or services before they become a public relations nightmare. Here are some basic points you should include in any response to unhappy customers:

  • Start with an apology to the customers – show that you're concerned that the customers are not happy with the products they purchased.

  • Reiterate the customers' complaints to show that you understand the complaints.

  • If the customers have not stated what they hope to achieve by making the complaints, ask them.

  • If the customers want a refund on the purchase price of the products, be prepared to offer a full or partial refund.

One the best ways to know if people are complaining about your products is to monitor the internet regularly. An easy tool to help you monitor customers' comments is ‘Google News Alerts'. You will be alerted by email the moment someone mentions your name, products or company on Google.

While it might hurt to hear some of the criticisms leveled against your business online, this is extremely powerful information that you can use to get a competitive edge. For instance, if you find that someone is ‘bad-mouthing' you and your products in a newsgroup or forum, you will be able to set the record straight immediately and minimize any damage caused.

What do people think? Constructive Feedback.

Do you lack the courage to ask people what they think of your products? Do remember that your customers, who are probably aware that you've put your heart and soul into creating your online business, will require just as much courage to criticize your products. Accept such criticism in a professional manner. The key here is to look at what was said rather than who said it.

For example, say you have created a website to sell your home-made cards online. A cleint has bought some of your cards and you feel that they will give you an honest answer. An ideal conversation you can have with the client should go along these lines:

“Can you please help me out, Mrs. Doe? I need some feedback about the cards I made. Don't worry. I won't be offended. I need to know how to improve these cards so that I can sell them at a more commercial level. You know that my dream is to make my card company into the next Hallmark Cards.”

Client, “Sure, I can help you. The first thing I can say is that your cards need to be cut professionally. Your cards have jagged edges and it's clear that you've been cutting these cards yourself. However, if you want to compete with people like Hallmark, you really need to have your cards cut by the professionals.”

“Thank you. You're right. I'll take your comments on board and do what is necessary.”

Can you see how you were able to make the client comfortable enough to constructively criticize your products?

If you'd like to ask subscribers to the online newsletter you run for their opinion on a particular product you're selling, pick a few unbiased subscribers and approach them in a considered manner. Consider writing to them in the following terms:


Hi Web Your Name®,

I am writing to ask if you can give me an honest opinion about my product. I feel that you have a good, solid knowledge about the industry. You are, therefore, in a position to give me some constructive criticism and also provide ways in which I can improve my products. I hope you will agree to help me and look forward to receiving your reply.

Kind regards,

Curious Reader.


You must take the time to gather competitive intelligence on a regular basis if your online business is to survive and thrive. It is to your advantage to learn from your competitors, keep your customers happy and act on the feedback you receive about your products. In so doing, you will be well on your way to making your online business a roaring success.