5 Steps To Identify Local Competitors

To identify and analyse your local competitors effectively, follow these 5 simple steps:

1. Map Your Market: Define your service area and understand your target audience.
2. Search Online: Use Google Maps, directories, and social media to find competitors.
3. Use Tools: Leverage free and paid tools like Google Business Profile Insights or BrightLocal for deeper analysis.
4. Listen to Customers: Gather insights through surveys, conversations, and review platforms.
5. Research in Person: Visit competitor locations and attend industry events for firsthand observations.

Quick Tip: Google My Business generates about 75% of qualified leads for local businesses – don’t overlook it.

These steps will help you uncover market trends, spot gaps, and improve your strategy. Dive into the details below to start analysing your competitors today.

Step 1: Map Your Local Market

Start by outlining your market area and understanding your target audience. This step helps you identify competitors who are vying for the same customers.

Set Your Service Boundaries

Define the geographical area your business will cover. This could range from specific suburbs to regional territories or even statewide, depending on your business model.

Here are some factors to consider when setting your service boundaries:

• Physical location: Use your shopfront or office as the central point.
• Travel radius: Determine the distance you can realistically cover while maintaining quality service.
• Population density: Focus on areas with enough potential customers to support your business.
• Local infrastructure: Evaluate transport routes and accessibility that could impact service delivery.

Once your service area is clear, shift your attention to understanding your customer base.

Define Your Customer Base

Create detailed profiles of your ideal customers. This will help you identify competitors targeting the same audience.

This information allows you to target specific neighbourhoods, customise your services, and identify competitors who cater to similar customer segments.

"For most local businesses, Google My Business generates around 75% of qualified leads and delivers fast results with a high ROI, making it the best method to focus on." – Search Scope SEO Agency

Step 2: Search Online

Once you’ve created your market map, it’s time to dig deeper with online research to better understand your competitors.

Use Search Engines and Listings

Start by searching online directories like True Local, Yellow Pages, industry-specific listings, local business associations, or Chamber of Commerce sites. For example, you could search for "cafés Perth CBD" to identify competitors in that area.

As you explore, take note of competitors’ names, locations, services, and unique selling points (USPs). This can help you spot trends and patterns in your market.

You can then use Google Maps to visualise where these competitors are located.

Explore Google Maps

Google Maps is an excellent tool for identifying local competitors. As Search Scope points out:

"For local businesses, ranking high on Google Maps is highly critical as is a critical part of their online success"

When using Google Maps:

• Focus on areas within your service range.
• Pay attention to businesses with high ratings and numerous reviews.
• Review Google My Business profiles to learn about competitors’ offerings and customer feedback.

Check Social Media Platforms

Social media offers a real-time view of competitor activity. Here’s what to keep an eye on across different platforms:

Search Scope also highlights the importance of Google My Business for local businesses:

"For most local businesses, Google My Business generates around 75% of qualified leads and delivers fast results with a high ROI, making it the best method to focus on."

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Step 3: Use Research Tools

Choose Analysis Tools

Digital tools can give you a much clearer picture of your local market than just relying on Google Maps and social media.

Here are some tools to help with local competitor analysis:

1. Google Business Profile Insights

This free tool offers detailed data about how customers discover and interact with local businesses:

• Search terms that bring users to your profile
• Customer actions like calls, website clicks, and direction requests
• Photo views and engagement stats

2. Local SEO Tools

These tools focus on analysing your competitors’ presence in local search results:

3. All-in-One Platforms

For a broader look at your market, consider platforms that combine multiple features, such as:

• SEMrush Local SEO toolkit
• BrightLocal
• Moz Local

Tool Features and Costs

When picking the right tools, keep these factors in mind:

Look for platforms that include:

• Local search tracking: Track rankings in specific areas or suburbs.
• Competitor benchmarking: Measure your performance against local rivals.
• Review monitoring: Keep an eye on customer feedback across platforms.
• Citation management: Ensure your business information is consistent everywhere.

If you’re a small business, start with Google Business Profile Insights. As your needs expand, consider upgrading to paid tools to deepen your analysis. The right tools will give you a clearer understanding of your competitive environment.

Armed with these insights, the next step is to hear directly from your customers.

Step 4: Listen to Customers

Ask Your Customers

Your existing customers are a treasure trove of information. They’ve likely compared your business to others, so their feedback can highlight what competitors are doing well (or not). Here’s how you can gather these insights:

• Customer Surveys: After completing a service, send out short surveys with targeted questions like:
  • Which other businesses did you consider before choosing us?
  • What made you pick us over the other options?
• Direct Conversations: Train your team to ask thoughtful questions during customer interactions, such as:
  • How did you hear about us?
  • Have you used similar services in the area?
  • What made you choose us over competitors?

These methods help you uncover valuable details about your competitors from the people who matter most – your customers. You can also ask them to drop your business a review on your preferred channel.

Read Online Reviews

To supplement customer feedback, dive into online reviews. They can confirm patterns you’ve noticed and even reveal competitors you might have missed. Look for trends on popular platforms:

When reviewing competitor feedback, focus on these key areas:

• Common complaints: Spot problems you can solve better.
• Positive feedback: See what customers appreciate.
• Response patterns: Learn how competitors handle criticism or praise.
• Recent trends: Track changes in service quality or customer satisfaction.

This combined approach gives you a well-rounded understanding of the local competition, helping you identify areas to improve and stand out.

Step 5: Research in Person

Visit Competitor Locations

Take the time to visit your competitors’ physical locations, or send someone on your behalf if you do not want to be seen spying.

This hands-on approach lets you evaluate their service quality, product offerings, and overall customer experience – things you might miss with just online research.

Pay attention to how staff interact with customers and how the business presents itself. Blend in as a regular customer to avoid drawing attention or disrupting operations.

Attend Industry Events

Participate in local meetups, trade shows, and networking events related to your industry. These gatherings are great for spotting active competitors and staying updated on market trends and challenges. Use these opportunities to gather insights about the market while maintaining a professional image.

Next Steps

Follow these five steps to start tracking your competitors effectively. Google My Business contributes to about 75% of qualified leads for local businesses.

Here’s how to get started:

• Set Up Regular Monitoring: Establish a monthly schedule to analyse your competitors’ online activity, especially focusing on their Google My Business profiles and local search rankings.
• Use Professional Tools: Invest in specialised tracking tools. Consider working with experts like Search Scope, an Australian SEO agency that specialises in local SEO, Google Maps SEO, and reputation management. These tools, combined with regular analysis, can help you stay ahead.

"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

Adjust your competitive analysis as the market evolves and your business grows. Staying proactive with your online presence and keeping an eye on competitors is key to staying ahead.

Don’t forget to implement a reputation management system. Monitoring reviews can help you spot opportunities to stand out and take advantage of your competitors’ weak spots.

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