The essential guide to competitive analysis (including template)

In competitive analysis, smaller companies may feel disadvantaged compared to large teams with expensive tools. The good news is you don’t need a vast budget or complex software to gain valuable insights.

In this post, you’ll learn what competitive analysis is (including a template) and a simple, six-step process for conducting one without breaking the bank.

What is competitive analysis?

Competitive analysis involves researching and evaluating your company’s competitors to understand their strengths, weaknesses and market share.

This process helps business owners make informed decisions about their own strategies – such as pricing and messaging, product development and customer experience (CX).

You don’t need to track every brand in your industry if you’re a startup or a small to medium-sized business (SMB). Instead, focus on three to five main competitors offering similar products to the same target audience. Analyzing these companies will give you actionable insights without overwhelming your team.

Here’s a simple competitive analysis example for a fictional accounting software company:

Imagine you’ve created a new project management platform. You analyze your competitors’ pricing models, customer reviews and unique selling propositions (USPs) and discover an opportunity to differentiate yourself.

For example, you focus on integrations with specific tools your target audience relies on or industry-specific templates others don’t offer.

Competitive analysis isn’t just about tracking other companies. It’s about using those insights to refine your sales strategy and carve out a strong market position.

Why is competitor analysis crucial for SMBs?

Staying competitive as an SMB is about knowing where you fit in the market and how to stand out. A well-executed competitive analysis allows you to make smarter, more strategic decisions without wasting time or resources.

Here are the most common reasons for conducting competitive analysis:

Discover underserved audiences or untapped niches

Companies don’t meet all customer needs, even in crowded markets. Analyze what your competitors offer, how buyers react and service gaps, then uncover sales opportunities that serve a niche audience others overlook.

When Gartner’s research indicates that 62% of CEOs consider “growth” their top business priority, you must find these gaps before competitors do.

Say you sell email marketing software and find that existing tools focus heavily on enterprise customers. This insight leads you to specialize in affordable, easy-to-use email automation for small companies.

Stay ahead of industry trends

Watching competitors helps SMBs that lack deep market research resources to spot trends early.

Competitive analysis helps you stay ahead of the game when you note shifts in customer feedback or brands using new technology.

For example, an accounting platform notices larger competitors pushing AI-driven bookkeeping services. Offering personalized advisory services that automation can’t replicate creates a competitive edge.

Refine your business strategy

Your competitors’ support, sales and marketing methods offer valuable lessons. By researching and noting what you’ve learned, you can fine-tune your approach.

When Crayon research suggests that 65% of business-to-business (B2B) software sales opportunities are competitive, you must stay ahead of others in your niche.

For example, a customer relationship management (CRM) startup reads forums discussing onboarding struggles with a competitor tool. Prioritizing a frictionless setup and live customer service support could create the “easiest-to-use” CRM.

Avoid costly mistakes

Learning from others’ missteps can save your business time and money and help you avoid common pitfalls, such as a failed product launch or an ineffective marketing campaign.

For instance, an e-commerce competitor switches to an annual-only pricing model and faces backlash. You decide to offer flexible billing options from the start and prevent lost customers.

A free competitive analysis template

Competitive analysis is much easier when you have a structured approach. Instead of starting from scratch, use a ready-made template to organize key insights.

If you’re looking to create your own competitive analysis report, here’s a free downloadable template you can customize to your needs:

6 steps to conduct a low-cost competitive analysis

Analyzing the competitive landscape is an ongoing effort. A clear plan ensures you gather the right insights and stay focused, saving time and resources.

Follow this step-by-step guide to assess your competitors efficiently without getting lost in too much data.

1. Identify your competitors

Your competitors offer similar products or services to the same target audience. Knowing who you’re up against helps you understand where everyone fits in the market and potential threats.

You likely have direct competitors (i.e., same product, same audience) and indirect competitors (i.e., different product, same problem-solving goal).

Prioritize companies that:

• Solve the same problem as you

• Target the same type of customers and demographics

• Offer a similar product or service at a comparable price point

Start by defining your core product or service and the problem it solves. Consider the industries you serve, customer pain points and what makes your solution unique.

Once you have these answers, look for companies offering similar solutions by:

• Searching Google for industry-specific keywords (e.g., “accounting for small businesses” or “project management software”)

• Checking online review websites (e.g., Trustpilot or G2) and forums (e.g., Reddit or Quora) to see which brands users commonly mention alongside yours

• Looking at companies running ads for your target keywords on Google and social media platforms

For example, you can search Capterra’s service categories to find the one closest to what you offer:

Buyers often compare multiple solutions before deciding on one. If you already have customers, ask them, “Which tools were you considering before choosing us?”

2. Gather information about your competition

Collect relevant data about your competitors, from product features to marketing strategies. This process helps you spot trends, gaps and areas where you can differentiate your business.

Start with a general look at your competitors’ websites, focusing on:

• Product pages

• Case studies

• Blogs

• FAQs

Use these pages to understand their value propositions and customer journeys. For example, QuickBooks’ homepage positions itself as an all-in-one accounting and bookkeeping software:

Sign up for competitor email newsletters, free trials or demo accounts to explore the product firsthand and understand the user experience (UX).

Use search engine optimization (SEO) tools like Semrush or Ahrefs if you have the marketing and sales budget. These platforms assess brands’ online performance, including the keywords they target and which sites provide backlinks to their pages.

Expand your search to their social media presence (e.g., Instagram, LinkedIn or TikTok) to see the content they create and how they engage with their audience.

Dive deeper with platforms like Trustpilot, G2 or Capterra to learn more about what competitors’ customers appreciate or dislike.

3. Use a SWOT analysis to organize strengths and weaknesses

A SWOT analysis categorizes each competitor’s insights into strengths (what the company does well), weaknesses (where it could improve), external opportunities and potential threats.

SWOT tables organize raw data into a structured analysis framework, making it easier to build a strategy around them (e.g., which weaknesses can you address).

Create a simple table with four columns (one for each direct competitor) and list:

• Strengths (e.g., brand recognition, customer loyalty, comprehensive features)

• Weaknesses (e.g., outdated website, customer support issues, high pricing)

• Opportunities for their business (e.g., untapped markets, functionalities they lack)

• Threats (e.g., emerging competitors, changing regulations, customer behavior shifts)

Repeat for each competitor and summarize the key findings for reference when crafting your strategy.

4. Compare pricing and offerings

Understanding how much your competitors’ products cost helps you find the sweet spot for your business. Pricing ultimately affects how people think of your brand, how many customers buy and how much you make (i.e., profitability).

Getting pricing right can be challenging: setting yours too low can signal low quality, while high prices can deter potential customers.

Look at how competitors price their products or services and what’s included in each tier. Some might charge a premium service (with all-inclusive features), while others may be budget-friendly (offering core features only).

Here’s how to analyze your competitors’ offerings:

• Gather pricing information from competitors

• Look for specific pages on their website and third-party review sites that list pricing tiers

• Note their pricing models, such as subscriptions, usage-based fees or one-off payments

Subscription models offer predictable recurring revenue, while one-time payments can drive larger, upfront sales.

For example, accounting platform Xero offers three monthly subscription plans with 95% off the first six months:

Look for hidden fees (e.g., additional costs for setup, support or advanced features) and whether their pricing is genuinely transparent. Check if the final cost aligns with their target market (e.g., is it affordable for a micro-business?) and where you could improve.

Compare product features and packages per pricing tier this way:

• Note if any exclusive features justify a higher price or if there are significant sales referral discounts

• Analyze any freemium models (do they offer a better or more flexible experience than yours?)

• If your free trial is shorter or provides fewer benefits, assess whether extending or expanding it could make your offer more attractive

Use your findings to evaluate how your product’s pricing aligns with customer expectations. For example, should your product match, beat or differentiate itself from competitors in terms of value?

Analyze market trends and refer to your buyer feedback (if you’ve already made sales). Both help fine-tune your offer and pricing strategy to retain customers while maximizing profitability.

5. Research marketing messaging and sales tactics

Understanding competitor messaging helps you differentiate your brand. Examine how competitors position themselves to strategize how you communicate your unique value to customers to make sales.

Website messaging

Study your competitors’ website content (i.e., information and resources like blog posts and case studies) and copy (i.e., persuasive language in headlines and sales pages that engage and convert visitors).

Pay particular attention to their:

• Headlines

• Subheadings

• Calls-to-action (CTAs)

Do they appeal to customer pain points or talk more about features? Note how they succeed (e.g., handling an objection upfront or evoking emotion) or don’t quite hit the mark.

For example, accounting software Wave uses benefits-driven copy (e.g., “Scan and organize your receipts”):

If competitors list product specifications, focus on crafting messaging that addresses people’s needs and is more likely to resonate.

Evaluate each company’s unique value proposition (UVP) or selling points and who they appeal to. For instance, Freshbooks positions itself for freelancers, solopreneurs and small businesses with employees and contractors:

Marketing messaging

See how competitors double down on their UVP through content marketing efforts (e.g., blog posts, podcasts, case studies and more) and on which marketing channels.

By understanding which messages and formats resonate with your shared audience, you can refine your UVP and identify more opportunities to stand out.

Email marketing is a powerful tool for building customer relationships and nurturing leads. Sign up for email lists to experience competitors’ campaigns firsthand. Look for patterns, language or tactics in email newsletter designs and automations that encourage higher conversion rates.

Studying these campaigns provides insights you can adopt or improve on in your own email efforts.

Sales tactics

If possible, try contacting each company’s sales team (via phone, web chat or sales demo request) to experience their approach firsthand. Ask:

• How do they position the product?

• Do they take a consultative selling approach to understanding people’s needs?

• Are they sales-focused or more casual?

• Which customer objections do they overcome and how?

By experiencing these interactions, you can identify gaps in your own sales tactics and better understand how customers may perceive your approach.

6. Turn insights into actionable strategies

Once you’ve gathered and analyzed your data, use it to refine your marketing, product and sales strategies. Competitive analysis is only valuable if you apply the insights to improve your business.

Use a template, spreadsheet or note-taking app to gather and organize your insights. Go through each and ask: “How can we use this to strengthen our business?”

Brainstorm opportunities to do something better, refine your approach or highlight unique strengths.

Here are five ways you can turn your analysis into actionable strategies:

1. Determine your differentiators. Can you improve customer support or offer a new feature that appeals to a specific pain point?

2. Take advantage of threats and opportunities. Use SWOT analysis insights to position your product or service to satisfy unmet needs or offer a better solution.

3. Revisit your pricing strategy. Can you deliver more value for the same price, or should you position yourself as a premium solution?

4. Refine your messaging. If competitors focus on features, highlight tangible benefits customers experience using your product.

5. Experiment with different sales tactics. If competitors offer extended free trials or more personalized demos, consider adopting similar practices.

Competitive analysis isn’t a one-time task. It’s a continuous process of learning, adapting and evolving. Staying proactive ensures your SMB remains competitive and responsive to customer needs.

More free tools to enhance your competitive analysis process

You don’t need a big budget to gain valuable insights into your competitors. There are plenty of low-cost ways to track industry trends and monitor competitor activity.

Here are four free competitive analysis tools to research your market and stay informed.

Google and social media platforms

Google and social media (e.g., X, Instagram and LinkedIn) are powerful tools for tracking competitors’ activities, monitoring customer sentiment and spotting trending topics.

For example, a Google search for “best small business accounting software” lists potential competitors:

You can use Google and social media platforms to:

• Search for competitor names and monitor their online presence

• Follow competitors on social media to observe what they’re posting, how often and the level of engagement they receive

• Keep an eye on paid ads to understand competitors’ targeting strategies

By regularly checking these platforms, you gain valuable insights into your competitors’ activities and make more informed decisions on your strategy.

Google Alerts

Google Alerts is a free service that notifies you when new content related to specific keywords appears in Search. It lets you stay up to date on your competitors’ activities without constant manual research.

Simply set alerts for your competitors’ brand names, product names or relevant industry keywords. Also, set alerts for broader terms (e.g., “project management software”) to spot emerging trends or new competitors.

Use these alerts to monitor mentions in news articles, blog posts or any web content on autopilot. Staying informed about competitor updates and industry trends across the web allows you to identify new opportunities and adapt your strategy with less effort.

Third-party review sites

Third-party review sites (e.g., G2, Capterra and Trustpilot) allow users to leave feedback about their experiences with products or services. Visit these sites to assess customer sentiment about your competitors and areas where they excel or fall short.

For example, scroll through G2 reviews or search specific keywords:

Here are four ways you can research competitors using third-party sites:

1. Search for competitor brand names and analyze their customer reviews

2. Look for feedback patterns to determine common pain points or positive features

3. Check their public responses to gauge how they manage customer relationships

4. Filter by star ratings to identify gaps in service or features you can leverage

Review sites give you an unbiased perspective on competitors’ performance to uncover valuable opportunities to improve your business.

Microsoft Excel or Google Sheets

Microsoft Excel or Google Sheets are simple spreadsheet tools that allow you to compile data (e.g., brand tone of voice insights) and metrics (e.g., market share percentages) systematically.

Organizing large amounts of competitor information from the start (instead of trying to compile multiple written notes halfway through) makes it much easier to digest and analyze later.

For example, here’s how you can lay your analysis out in Google Sheets:

You could also add columns for:

• Competitor names

• Pricing

• Features

• Customer reviews

• Other relevant insights

Using filters allows you to compare competitors across various categories quickly. You can also create visualizations (e.g., charts or graphs) to identify patterns, such as pricing trends or service gaps.

Update your spreadsheet regularly as you gather new insights to ensure you’re working with the most current data.

How to use Pipedrive’s CRM alongside competitive analysis

A CRM system like Pipedrive isn’t just for tracking leads – it helps you organize and act on competitive insights. Integrating competitor analysis into your CRM allows your team to make data-driven decisions and respond strategically when sales prospects mention alternative brands.

One way to do this is to add a “Competitor mentioned” custom field that tracks when client conversations mention competitors.

In your Pipedrive account, head to “Data fields” within your company settings to add custom fields:

Set up workflow automations to notify your team of these competitor mentions and ensure timely engagement to overcome objections.

Use Pipedrive’s artificial intelligence-powered AI Sales Assistant to track the performance of deals mentioning competitors and get personalized suggestions to help your team adjust their approach.

Learn more about this powerful AI CRM feature in this video:

Over time, these fields can reveal patterns (e.g., a particular competitor gaining traction) so your team can refine messaging, update sales training or adjust brand positioning.

You can also add competitors as organizations within Pipedrive to store key details like pricing, features and selling points.

When a prospect brings up a competitor in a sales conversation, your team can quickly reference this information to respond with a clear, confident comparison.

Imagine if prospects frequently mention that a competitor’s feature doesn’t work as expected or is too expensive. You can create customized email templates using analysis insights to address these concerns directly during outreach or follow-ups.

Here’s where you create an email draft and save it as a template in Pipedrive:

This helpful feature highlights how your solution overcomes these pain points without crafting a new response each time.

Pipedrive’s notes and activity-tracking features also ensure that salespeople share competitor insights from sales calls and meetings with the rest of the team.

Notes can include when prospects mention competitors during outreach:

Reviewing this data regularly and discussing it in sales meetings can help refine strategies, tackle objections and improve win rates.

Lastly, lead scoring can prioritize competitive prospects. If a lead mentions a competitor, they’re likely further down the sales funnel. Label these contacts within Pipedrive and flag them for timely follow-ups with the right messaging highlighting your unique value.

By embedding competitive analysis into your CRM, your sales reps stay informed, aligned and ready to win more deals.

4 challenges for SMBs conducting a competitive analysis

Competitive analysis isn’t always easy. However, there are ways to gather valuable insights and make informed decisions (even with limited time, budget or data).

Here are four top challenges for SMBs when analyzing competitors and recommendations to address them:

Recognizing these challenges and applying practical solutions allows you to conduct meaningful competitive analysis without feeling overwhelmed.

Competitive analysis FAQs

Final thoughts

Competitive analysis becomes easier when you break it down into manageable steps. Focusing on key areas like pricing, product offerings and customer feedback allows you to gather helpful insights without a big budget or endless resources.

Remember to commit to an ongoing analytical process to stay ahead of evolving trends and product updates.

When you’re ready to make your competitive analysis more straightforward, try Pipedrive free for 14 days to see how centralizing your sales data helps you make smarter business decisions.