Online Marketing & The Value of Researching the Competition

Knowledge is a wonderful thing, yet real-world experience is even more valuable. It’s likely because of the importance placed on what’s known as ‘book learnin’ that so many experts take certain details of their niche for granted. That is, they expect their clients to know things they do not. Not only does this happen among interior designers, furnishing dealers, and manufacturers, it frequently happens among those they rely on to support them: for example, business coaches and online marketing experts.

One of the areas in which this commonly happens is market research. Many think they know what the term means yet find it difficult to explain or perform well. It’s a bit like the phrase, “I can’t describe it, but I know it when I see it.”

Well, that’s  really not good enough for the person who is supposed to be doing it – or for the person who needs it done – and done well.

First, we ask, what exactly is “market research”? According to the online dictionary Wiktionary, it is “The systematic collection and evaluation of data regarding customers' preferences for actual and potential products and services.”

That’s a nice, concise explanation as far as it goes but, it’s all about the wants and/or needs of potential customers or clients. Where it falls apart, at least for our purposes, is that it never mentions the competition. After all, none of us live or work in a vacuum free from competition. And, just as it’s critical to know what the market demands, it’s equally important to know how and if other businesses are meeting that demand.

What’s the Other Guy Doing?

Quite simply, if you don’t know what “the other guy or gal” is doing in your market, your chances of cutting into their customer base are low indeed. Further, the business coach or online marketing expert you may have hired will be inclined to believe you already know not only how important this is, but also that you either know it or know how to find out. (That is what we mean about experts taking things for granted, by the way.)

And now, we offer some guidance on how to perform market research on your competition:

What services are the busiest interior designers in your area offering? This one is pretty easy to answer. Jump online and check out the websites or social media profiles of the top designers or dealers in your area and look at their “Services Provided” or “Products” section. For designers, how do they describe their services and what are you seeing most often? For retailers, which lines are being offered in your market, and to what extent?

For both, are they a full-service provider or do they make more of a “one and done” type of impression? For the latter, it should be obvious you could fill in the gaps. (More on that a bit later.)

Which categories of design services are not being offered in your area? Again, researching the competition will enable you to build a list of the most frequently mentioned services or product lines being offered in your area. This list can then be compared to other possible services or product lines that are missing from your market.

That is the list you want to focus on – what we call the “List of What is Possible”. That is, the design services and/or product lines you believe can make an impression on potential clients who are currently unable to find them.

What home renovation or design challenges do customers have in your area? This is an area where the details matter. So many designers go for The Big Job and forget the importance – and number – of smaller and potentially more profitable projects. While it’s great to work on high-dollar, high-profile projects, it’s also a fact of life that many such jobs are quoted with lower margins and end up costing more than anticipated, reducing profits even further. (Landing those jobs is also an ego boost that a sharp designer shouldn’t need.)

Choosing to focus on a higher volume of higher-margin projects that can be completed more quickly is a fantastic path to building your business and your reputation. And, since interior design is a local business (as we keep saying), building your rep as a creative, reliable professional will be your key to long-term success. (PLUS – smaller projects often offer the potential for more repeat business; that is, instead of renovating an entire house, doing one room at a time over time.)

What Are You Doing?

Finding voids in your market is well and good but will have little value if you are unable or unwilling to fill them. Doing so will require that you rethink your business model to better fit those areas. You may even find that the most needed, and potentially most profitable, service categories are not your favorites. However, if your goal is to build your business rather than to tickle your own fancy, you may need to bite the bullet and offer them.

With these thoughts in mind, expand your research by asking yourself:

Which design services can I provide that are unique, superior, or at a more competitive price point? How can I help homeowners solve their unmet renovation or design challenges? Is there a need for a pro with a different pricing structure?

In what other categories could I perform design work? How many competitors in my potential other categories are in my service area? Is there a need for a pro who can take on small and mid-sized projects?

What will set me apart from the local competition? What can I offer that is different, better, done more quickly, or at a better value? Which lines of furniture, fabrics, wallcoverings, rugs, mirrors, pillows, and lighting might have an impact on your market and, in our current jumbled world, which of them have shorter lead times and/or greater availability?

Use these questions to research your area and to evaluate your own business. Your market research must include all of these factors to see if there’s an unmet need you can fulfill to attract new and/or repeat clients and close more deals.

If you struggle with research for online marketing of your furniture or design business, consider working with a more experienced consultant. Ted is available for such business consulting to the trade. Just… Get in touch with TD Fall today.