5 Steps To Identify Local Competitors

Last Updated on 20 October 2025 by Dorian Menard

As a business owner, you know the local market is where the real battles are won. But it’s tough to get a clear picture of who you’re actually up against when you’re busy running the day-to-day.

You need a straightforward way to identify local competitors and understand their strategies so you can find your own advantage.

From my experience running Search Scope, I can tell you that a proper local competitor analysis is the foundation of any successful SEO campaign. It’s not just about knowing names, it’s about understanding what they do well and where their weaknesses are. A staggering 93% of Australians now search online to find local brands, which means your competitors are more visible than ever.

This guide gives you a simple, five-step process to find and analyse your local competitors effectively. We’ll cover everything from mapping your service area to using the right tools, helping you turn data into a real-world strategy.

Here’s a quick overview of what we’ll cover:

• Map Your Market: Define your service area and identify your ideal customers.
• Search Online: Use Google, specialised directories, and social media to find competitors.
• Use The Right Tools: Get deeper data with free and paid tools like Google Business Profile Insights or BrightLocal.
• Listen to Customers: Use surveys and online reviews to gather direct feedback.
• Research in Person: Visit competitor locations to see their operations firsthand.

Step 1: How Do You Define Your Local Market?

Before you can identify your competitors, you need to know exactly where and to whom you’re selling. This first step is about setting clear boundaries for your service area and getting specific about your target audience. It’s the only way to find competitors who are truly after the same customers.

How to Set Your Service Boundaries

Start by defining the geographical area your business serves. This could be a few specific suburbs, a whole city, or a wider region, depending on your business model and what’s practical for your operations.

Here are a few factors to think about when drawing your map:

• Physical Location: Is your shopfront the centre of your service area? Or do you operate from a home office?
• Travel Radius: How far can you or your team realistically travel while still offering a great, profitable service? Consider fuel costs and time.
• Population Density: Use data from the Australian Bureau of Statistics (ABS) to find postcodes with a high concentration of potential customers. This helps you focus your efforts where they’ll have the most impact.
• Local Infrastructure: Think about major roads, public transport, and accessibility. Poor transport routes can make an area impractical to service effectively.

Once you have a clear service area, you can focus on the people within it.

Who Is Your Ideal Customer Base?

Now, create detailed profiles of your perfect customers. When you know who you’re targeting, you can easily spot the competitors who are targeting them too.

This isn’t just about basic demographics. You need to understand their motivations and challenges to truly connect with them.

This level of detail helps you refine your marketing messages and identify rivals who are solving the same problems for the same people.

According to a 2021 CommBank Consumer Insights Report, over 50% of Australian shoppers want to buy from locally sourced and produced businesses, showing a strong preference for supporting their local community. This data highlights why understanding your local customer base is so critical.

Step 2: Where Can You Find Local Competitors Online?

With your market map in hand, it’s time to start the search. The internet is the easiest place to find out who you’re up against, and there are a few key places to look.

Which Search Engines and Listings Should You Use?

A simple Google search is the best starting point. Use search terms your customers would use, like “cafés Perth CBD” or “plumber Fremantle.”

Beyond Google, check out major Australian online directories. These sites are specifically designed to help people find local businesses. Good ones to check include:

• TrueLocal
• Yellow Pages Australia
• WOMO (Word of Mouth Online)
• Hotfrog
• Industry-specific sites (e.g., hipages for tradies).

As you find competitors, create a simple spreadsheet to track their names, locations, services, and what makes them unique. This helps you organise your findings and spot market trends.

How to Use Google Maps for Competitor Research

Google Maps is an essential tool for local competitor analysis. It visually shows you who is operating in your service area and how they are perceived by customers.

As my team at Search Scope often says, “ranking high on Google Maps is highly critical as it is a critical part of their online success.” Your competitors know this too.

When you’re looking at Google Maps:

• Search your main keywords within your specific service suburbs.
• Look at the top results. Who has the highest ratings and the most reviews? These are your strongest competitors.
• Analyse their Google Business Profile. Read their customer reviews, check their photos, and look at the Q&A section to understand their customer service and offerings.

What Should You Look For on Social Media?

Social media gives you a real-time look at how your competitors interact with their customers and market their business. Each platform offers different clues.

In my experience, consistency across these online channels is key. A competitor who is active and well-regarded on multiple platforms is likely a serious player in the market.

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Step 3: What Are the Best Tools for Local Competitor Analysis?

While manual searching is a great start, digital tools provide much deeper data. They help you analyse your local market more efficiently and accurately, moving beyond what’s visible on the surface of Google Maps or social media.

How to Choose the Right Analysis Tools

There are free and paid tools available that cater to different needs and budgets. For any Australian business owner, starting with Google’s own free tool is a must.

1. Google Business Profile Insights
   This free tool is built into your GBP dashboard and shows you valuable data about how customers are finding you. You can see:
   • The search terms people used to find your profile.
   • Customer actions, such as phone calls, website clicks, and requests for directions.
   • How your photos are performing compared to competitors.
2. Local SEO Tools
   These paid platforms are designed specifically for local search analysis. They help you track your performance against your competitors in local search results.

   Tool Type	What It Does	Why It’s Useful
   Rank Tracking	Monitors your search engine rankings for specific keywords in specific suburbs.	Shows you exactly where you stand against competitors on Google.
   Review Management	Tracks and aggregates competitor reviews from multiple sites.	Helps you quickly identify their strengths and weaknesses from the customer’s perspective.
   Citation Analysis	Finds and analyses every online mention (Name, Address, Phone number) of your competitors.	Uncovers where they are listed online so you can get listed there too.

3. All-in-One Platforms
   For a more comprehensive analysis, these platforms combine multiple features into one dashboard. They are powerful but come with a monthly subscription. Top options include:
   • The Semrush Local SEO toolkit
   • BrightLocal
   • Moz Local

Are Paid Competitor Research Tools Worth the Cost?

When deciding whether to invest in a paid tool, consider the value of the data you’ll receive. These tools can save you dozens of hours of manual research and provide insights you’d never find on your own.

A tool like BrightLocal is excellent for small businesses and agencies because it bundles rank tracking, review monitoring, and citation building into one affordable package, with plans starting around $39/month. For those on a tight budget, starting with the free Google Business Profile Insights is the best first step. As your business grows, upgrading to a paid tool can provide the clarity needed to really compete.

Step 4: How Can You Learn from Your Competitors’ Customers?

Your customers, and your competitors’ customers, are your best source of intelligence. Their feedback tells you exactly what the market wants, what competitors are doing right, and where the service gaps are.

Why You Should Ask Your Own Customers About Competitors

Your existing customers chose you for a reason, and they likely considered other options first. Their perspective is incredibly valuable for understanding your position in the market.

Here’s how to gather their feedback:

• Customer Surveys: Use free tools like Google Forms to send short surveys after a purchase or service. Ask direct questions like, “Which other businesses did you consider before choosing us?” or “What was the single most important factor in your decision?”
• Direct Conversations: Train your staff to ask casual questions during interactions. A simple “How did you find out about us?” can often reveal which competitors are ranking well in search or are well-known in the community.

This feedback helps you pinpoint your competitive advantages. Once you know why customers choose you, you can lean into those strengths in your marketing. Don’t forget to also ask them to drop your business a review on your preferred channel.

How to Analyse Your Competitors’ Online Reviews

Reading your competitors’ online reviews is like having a direct line into their customer service experience. BrightLocal’s 2025 Local Consumer Review Survey found that 74% of consumers use at least two review sites before making a decision, making platforms like Google essential for research.

When you’re reading reviews, don’t just skim them. Look for patterns:

• Common complaints: Are customers always mentioning long wait times or poor communication? This is a weakness you can exploit.
• Frequent praise: What do people love about them? This tells you what the market values.
• Response patterns: Do they respond to negative reviews professionally, or do they ignore them? Their response strategy tells you a lot about their business.

By combining direct customer feedback with online review analysis, you get a 360-degree view of the competitive landscape.

Step 5: What Can You Learn by Researching in Person?

Online research gives you the data, but in-person research gives you the context. Visiting your competitors’ locations or seeing them at industry events provides insights that you can’t get from behind a screen.

Why Should You Visit Competitor Locations?

If your competitors have a physical location, make time to visit. You can go yourself or send a friend or family member to act as a “mystery shopper.”

This firsthand approach allows you to observe things that online data will never show you. Pay close attention to:

• Customer Experience: How are customers greeted? Is the staff friendly and helpful? What is the overall atmosphere like?
• Product & Service Delivery: How are their products displayed? How efficient is their service process?
• Pricing & Promotions: Are there any in-store specials or promotions advertised that aren’t online?
• Physical Environment: Is the location clean and well-maintained? How does their branding look in person?

These details are often the small differentiators that win or lose a customer. Try to blend in as a normal customer to get an authentic experience.

How to Use Industry Events for Competitor Research

Local trade shows, networking meetups, and industry conferences are fantastic opportunities to learn about your market. You can see who the active players are and hear about the latest trends and challenges directly from the source.

At these events, you can:

• Observe their branding: How do they present their business to the industry?
• Listen to their sales pitch: What do they highlight as their key strengths?
• Network with others: Chat with suppliers or other business owners to get their perspective on the key players in the local market.

The goal isn’t to steal secrets, but to understand how your competitors position themselves and to stay current with what’s happening in your industry. It’s a professional way to gather market intelligence while also building your own network.

What Should You Do After Your Competitor Analysis?

Once you’ve completed these five steps, you’ll have a much clearer picture of your local market. But the analysis is just the beginning. The next step is to use that information to build a stronger business strategy.

Here’s how to put your findings into action:

• Set Up Regular Monitoring: Your market is always changing. Schedule time each month to review your main competitors’ online activity, especially their Google Business Profiles and any changes in their local search rankings.
• Use Professional Tools or Services: To stay ahead, consider investing in specialised tracking tools. Alternatively, working with an expert team like Search Scope can help. We’re an Australian SEO agency that focuses on local SEO, Google Maps, and reputation management.

Continuously adapting your strategy based on market changes is the key to long-term success. By staying informed about your competitors, you can consistently find new opportunities to improve and grow.

“If you’re a local business and are looking to drive more traffic to your business through the web, I highly recommend Dorian over at Search Scope! I’ve worked with a number of SEO Consultants, and Dorian is one of the most knowledgeable and results driven experts I’ve met!” – Mitch Newton, Search Engine Marketing Manager

Finally, make sure you have a solid system for managing your own online reputation. Monitoring your reviews helps you address weaknesses and highlight the strengths that make you stand out from the competition.

Frequently Asked Questions (FAQs)

What is the easiest way to find local competitors?

The simplest method is to perform a Google search using the keywords your customers would use, combined with your service area. For example, search “best pizza in Surry Hills” or “electrician near me.” The businesses that appear in the top results, especially in the Google Maps pack, are your primary online competitors.

How do I analyse a competitor’s pricing?

Check their website for a pricing page or service menu. If prices aren’t listed, you can call and ask for a quote for a standard service to get a baseline. For retail businesses, visit their store in person. Look for patterns, are they positioning themselves as a budget-friendly option or a premium provider?

What’s the difference between a direct and an indirect competitor?

A direct competitor offers the same service or product to the same target audience. For example, two Italian restaurants in the same suburb are direct competitors. An indirect competitor offers a different product or service that solves the same customer problem. For that same Italian restaurant, an indirect competitor could be a Thai restaurant, a pizza delivery service, or a meal-kit subscription box.

How often should I do a local competitor analysis?

A deep analysis should be done at least once a year or whenever you are planning a major strategy change. However, you should set up a lighter, monthly monitoring process to track key competitors’ online rankings, new customer reviews, and social media activity to stay on top of any market shifts.

Are online tools necessary for local competitor analysis?

While not strictly necessary, they make the process much faster and more accurate. Free tools like Google Business Profile Insights provide a good starting point. Paid tools like BrightLocal or Semrush offer deeper data on search rankings, online mentions, and review trends that are very difficult to gather manually.

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