How to conduct a competitive analysis of SaaS products

If you are a SaaS (software as a service) business owner, you know how competitive the market is. You are not only competing with other SaaS companies, but also with traditional software vendors, open-source solutions, and DIY alternatives. To succeed in this crowded and dynamic space, you need to have a clear understanding of your competitors, their strengths, weaknesses, opportunities, and threats. You need to conduct a competitive analysis of SaaS products.

A competitive analysis of SaaS products is the process of researching, analyzing, and comparing your SaaS product with your direct and indirect competitors. It helps you identify your unique value proposition, your competitive advantage, and your market positioning. It also helps you discover gaps and opportunities in the market, and improve your product, marketing, sales, and customer service strategies.

In this blog post, we will show you how to conduct a competitive analysis of SaaS products in 2024. We will cover the following topics:

• Why you need to conduct a competitive analysis of SaaS products
• How to identify your competitors and categorize them
• How to evaluate your competitors’ products and offerings
• How to assess your competitors’ sales and marketing strategies
• How to analyze your competitors’ strengths and weaknesses
• How to use different frameworks and tools to conduct a competitive analysis of SaaS products
• How to use the insights from your competitive analysis to improve your SaaS product and business

By following these steps, you will be able to conduct a competitive analysis of SaaS products that will help you gain a competitive edge and grow your SaaS business. Let’s get started!

Why you need to conduct a competitive analysis of SaaS products

Conducting a competitive analysis of SaaS products is not only a good practice, but also a necessity for any SaaS business. Here are some of the benefits of conducting a competitive analysis of SaaS products:

• It helps you understand your market and your customers better. You can learn about the market size, trends, opportunities, and challenges. You can also learn about your customers’ needs, preferences, expectations, and pain points.
• It helps you differentiate your product and your brand from your competitors. You can find out what makes your product unique, valuable, and desirable. You can also find out what makes your brand memorable, trustworthy, and loyal.
• It helps you optimize your product and your business performance. You can find out what features, benefits, and advantages your product has over your competitors. You can also find out what areas of improvement and innovation you need to focus on.
• It helps you develop and execute your marketing and sales strategies. You can find out what channels, messages, and tactics your competitors use to reach and convert their customers. You can also find out what gaps and opportunities you can exploit to attract and retain your customers.

How to identify your competitors and categorize them

The first step in conducting a competitive analysis of SaaS products is to identify your competitors and categorize them. Your competitors are the other SaaS companies that offer similar or substitute solutions to your target market. You can categorize your competitors into two types: direct and indirect.

• Direct competitors are the SaaS companies that offer the same or very similar solutions to your target market. They have the same or very similar value propositions, features, benefits, and pricing. They are your main competitors and pose the most threat to your business. For example, if you offer a SaaS CRM (customer relationship management) solution, your direct competitors are other SaaS CRM solutions, such as HubSpot, Salesforce, or Zoho.
• Indirect competitors are the SaaS companies that offer different or alternative solutions to your target market. They have different or alternative value propositions, features, benefits, and pricing. They are your secondary competitors and pose less threat to your business. However, they can still affect your market share and customer satisfaction. For example, if you offer a SaaS CRM solution, your indirect competitors are other types of solutions that can help your customers manage their relationships, such as email marketing tools, social media tools, or chatbots.

To identify your competitors and categorize them, you can use the following methods:

• Conduct online research: You can use online tools and platforms, such as Google, Bing, social media, review sites, blogs, forums, etc., to search for keywords related to your product, industry, niche, or problem. You can also use tools such as Google Trends, BuzzSumo, or SimilarWeb to find out the popularity, traffic, and trends of your competitors.
• Ask your customers: You can use surveys, interviews, feedback forms, or social media polls to ask your customers or prospects who they consider as your competitors, what they like or dislike about them, and why they chose or switched to your product. You can also use tools such as SurveyMonkey, Typeform, or Pollfish to create and distribute your surveys.
• Analyze your data: You can use your own data and analytics, such as website, email, social media, or CRM data, to find out who your visitors, leads, customers, or churned customers are, where they come from, what they do, and what they want. You can also use tools such as Google Analytics, Facebook Insights, or HubSpot to collect and analyze your data.

By identifying your competitors and categorizing them, you will be able to conduct a competitive analysis of SaaS products that will help you focus on your most relevant and important competitors, and understand their similarities and differences with your product.

How to evaluate your competitors’ products and offerings

The third step in conducting a competitive analysis of SaaS products is to evaluate your competitors’ products and offerings. Your competitors’ products and offerings are the solutions that they provide to your target market, such as features, benefits, pricing, etc. Evaluating your competitors’ products and offerings will help you understand their value propositions, their competitive advantages, and their market positioning.

To evaluate your competitors’ products and offerings, you can use the following methods:

• Sign up for free trials or demos: You can sign up for free trials or demos of your competitors’ products and offerings, and experience them first-hand. You can also use tools such as UserTesting, Hotjar, or FullStory to record and analyze your user journey, behavior, and feedback. You can use this method to evaluate your competitors’ products and offerings in terms of usability, functionality, design, quality, etc.
• Read customer reviews and testimonials: You can read customer reviews and testimonials of your competitors’ products and offerings, and learn from their opinions, preferences, needs, and expectations. You can also use tools such as Trustpilot, Capterra, or G2 to find and compare customer reviews and ratings. You can use this method to evaluate your competitors’ products and offerings in terms of customer satisfaction, loyalty, and advocacy.
• Conduct a feature and benefit analysis: You can conduct a feature and benefit analysis of your competitors’ products and offerings, and compare them with your own. You can also use tools such as Product Hunt, Siftery, or AlternativeTo to find and compare product features and benefits. You can use this method to evaluate your competitors’ products and offerings in terms of value proposition, differentiation, and innovation.

By evaluating your competitors’ products and offerings, you will be able to conduct a competitive analysis of SaaS products that will help you understand their value propositions, their competitive advantages, and their market positioning. You will also be able to identify gaps and opportunities in the market, and improve your product, marketing, sales, and customer service strategies.

How to assess your competitors’ sales and marketing strategies

The fourth step in conducting a competitive analysis of SaaS products is to assess your competitors’ sales and marketing strategies. Your competitors’ sales and marketing strategies are the methods and tactics that they use to attract, convert, and retain their customers, such as channels, messages, campaigns, offers, etc. Assessing your competitors’ sales and marketing strategies will help you understand their customer acquisition, retention, and growth strategies.

To assess your competitors’ sales and marketing strategies, you can use the following methods:

• Subscribe to their email lists and newsletters: You can subscribe to your competitors’ email lists and newsletters, and receive their updates, promotions, and content. You can also use tools such as MailCharts, EmailAnalytics, or Litmus to analyze and compare their email marketing strategies. You can use this method to assess your competitors’ sales and marketing strategies in terms of email frequency, subject lines, content, calls to action, etc.
• Follow their social media accounts and blogs: You can follow your competitors’ social media accounts and blogs, and see their posts, stories, videos, etc. You can also use tools such as Social Blade, BuzzSumo, or Feedly to analyze and compare their social media and content marketing strategies. You can use this method to assess your competitors’ sales and marketing strategies in terms of social media platforms, content formats, content topics, engagement, etc.
• Visit their websites and landing pages: You can visit your competitors’ websites and landing pages, and see their design, layout, navigation, etc. You can also use tools such as SimilarWeb, Alexa, or Hotjar to analyze and compare their website and landing page strategies. You can use this method to assess your competitors’ sales and marketing strategies in terms of website traffic, bounce rate, conversion rate, user experience, etc.

By assessing your competitors’ sales and marketing strategies, you will be able to conduct a competitive analysis of SaaS products that will help you understand their customer acquisition, retention, and growth strategies. You will also be able to identify gaps and opportunities in the market, and improve your sales and marketing strategies.

How to analyze your competitors’ strengths and weaknesses

The fifth step in conducting a competitive analysis of SaaS products is to analyze your competitors’ strengths and weaknesses. Your competitors’ strengths and weaknesses are the factors that make them better or worse than you in terms of product, marketing, sales, and customer service. Analyzing your competitors’ strengths and weaknesses will help you understand their competitive advantage, their value proposition, and their market positioning.

To analyze your competitors’ strengths and weaknesses, you can use the following methods:

• Conduct a SWOT analysis: A SWOT analysis is a tool that helps you identify your competitors’ strengths, weaknesses, opportunities, and threats. You can use a SWOT analysis to assess your competitors’ current situation, identify their goals, and plan their actions. You can also use a SWOT analysis to compare your competitors with yourself, and find out your relative advantages and disadvantages.
• Conduct a feature and benefit analysis: A feature and benefit analysis is a tool that helps you compare your competitors’ products and offerings with your own. You can use a feature and benefit analysis to find out what features, benefits, and advantages your competitors have over you, and what features, benefits, and advantages you have over them. You can also use a feature and benefit analysis to find out what gaps and opportunities exist in the market, and how you can fill them or exploit them.
• Conduct a customer satisfaction analysis: A customer satisfaction analysis is a tool that helps you measure and evaluate your competitors’ customer satisfaction, loyalty, and advocacy. You can use a customer satisfaction analysis to find out what your competitors’ customers think, feel, and do about their products and services. You can also use a customer satisfaction analysis to find out what your competitors’ customers want, need, and expect from them, and how you can meet or exceed them.

By analyzing your competitors’ strengths and weaknesses, you will be able to conduct a competitive analysis of SaaS products that will help you understand their competitive advantage, their value proposition, and their market positioning. You will also be able to identify gaps and opportunities in the market, and improve your product, marketing, sales, and customer service strategies.

How to use different frameworks and tools to conduct a competitive analysis of SaaS products

The sixth step in conducting a competitive analysis of SaaS products is to use different frameworks and tools to conduct a competitive analysis of SaaS products. Frameworks and tools are the methods and techniques that help you organize, visualize, and communicate your competitive analysis of SaaS products. Using different frameworks and tools to conduct a competitive analysis of SaaS products will help you create a comprehensive and clear competitive analysis of SaaS products.

To use different frameworks and tools to conduct a competitive analysis of SaaS products, you can use the following examples:

• Use a competitive matrix: A competitive matrix is a tool that helps you compare your product and your competitors’ products based on different criteria, such as features, benefits, pricing, etc. You can use a competitive matrix to create a table or a chart that shows how your product and your competitors’ products rank on each criterion. You can also use a competitive matrix to highlight your strengths and weaknesses, and your opportunities and threats. You can use tools such as Excel, Google Sheets, or Airtable to create a competitive matrix.
• Use a perceptual map: A perceptual map is a tool that helps you position your product and your competitors’ products based on two dimensions, such as quality, price, innovation, etc. You can use a perceptual map to create a graph that shows how your product and your competitors’ products are perceived by your customers on each dimension. You can also use a perceptual map to identify your market segments, your niche, and your differentiation. You can use tools such as PowerPoint, Google Slides, or Canva to create a perceptual map.
• Use a value proposition canvas: A value proposition canvas is a tool that helps you design your product and your brand based on your customer segments, their jobs, pains, and gains, and your value propositions, your products, and services, and your pain relievers and gain creators. You can use a value proposition canvas to create a diagram that shows how your product and your brand create value for your customers, and how they differ from your competitors. You can also use a value proposition canvas to test and validate your assumptions, and improve your product and your brand. You can use tools such as Strategyzer, LeanStack, or Miro to create a value proposition canvas.

By using different frameworks and tools to conduct a competitive analysis of SaaS products, you will be able to create a comprehensive and clear competitive analysis of SaaS products. You will also be able to organize, visualize, and communicate your competitive analysis of SaaS products.

How to use the insights from your competitive analysis to improve your SaaS product and business

The seventh and final step in conducting a competitive analysis of SaaS products is to use the insights from your competitive analysis to improve your SaaS product and business. Your insights are the key findings, learnings, and recommendations that you have derived from your competitive analysis of SaaS products. Using the insights from your competitive analysis will help you create and implement action plans to improve your product, marketing, sales, and customer service strategies.

To use the insights from your competitive analysis to improve your SaaS product and business, you can use the following tips:

• Prioritize your insights: You need to prioritize your insights based on their importance, urgency, and feasibility. You need to focus on the insights that have the most impact, the most urgency, and the most feasibility. You can use tools such as Trello, Asana, or Notion to organize and prioritize your insights.
• Create action plans: You need to create action plans based on your insights. You need to define the objectives, tasks, resources, timelines, and responsibilities for each action plan. You also need to align your action plans with your goals and vision. You can use tools such as Google Docs, Evernote, or Airtable to create and document your action plans.
• Execute and monitor your action plans: You need to execute and monitor your action plans based on your insights. You need to follow your tasks, allocate your resources, meet your deadlines, and assign your roles. You also need to track and measure your progress and results. You can use tools such as Slack, Zoom, or Skype to communicate and collaborate with your team. You can also use tools such as Google Analytics, Facebook Insights, or HubSpot to track and measure your performance and results.

By using the insights from your competitive analysis to improve your SaaS product and business, you will be able to conduct a competitive analysis of SaaS products that will help you create and implement action plans to improve your product, marketing, sales, and customer service strategies. You will also be able to enhance your effectiveness and efficiency, and achieve your goals and grow your business.

Conclusion

Conducting a competitive analysis of SaaS products is a vital and valuable task for any SaaS business owner. Without a competitive analysis, you will not be able to understand your market, your customers, and your competitors. You will not be able to differentiate your product and your brand from your competitors. You will not be able to optimize your product and your business performance.

However, conducting a competitive analysis of SaaS products is not difficult. You just need to follow some steps and guidelines to conduct a effective and efficient competitive analysis.

In this blog post, we have shown you how to conduct a competitive analysis of SaaS products in 2024. We have covered the following topics:

• Why you need to conduct a competitive analysis of SaaS products
• How to identify your competitors and categorize them
• How to evaluate your competitors’ products and offerings
• How to assess your competitors’ sales and marketing strategies
• How to analyze your competitors’ strengths and weaknesses
• How to use different frameworks and tools to conduct a competitive analysis of SaaS products
• How to use the insights from your competitive analysis to improve your SaaS product and business

By following these steps, you will be able to conduct a competitive analysis of SaaS products that will help you gain a competitive edge and grow your SaaS business. You will also be able to create a comprehensive and clear competitive analysis of SaaS products.

We hope you found this blog post helpful and informative. If you have any questions, comments, or feedback, please feel free to leave them below. Thank you for reading and happy competitive analysis!