BDC Consulting helps Web3 projects grow their business and make data-driven strategic decisions. To obtain that data, we conduct global market research, using information from public sources, personal interactions with the target audience, and competition analysis.
It’s the latter — competitor analysis — that we’ll talk about in this article, looking at some practical challenges that it can solve.
For companies that face strong competitors and want to stay a step ahead of them.
Our client in this case study was a leading crypto payment processing company. As we were working on a growth strategy for the upcoming year, we identified the key growth vectors that could help the client to increase revenue and profit by hundreds of percentage points.
The list of growth vectors included:
For each of these growth opportunities, we came up with a list of questions and hypotheses; below are a few examples.
Developing a partner network:
Customer onboarding optimization:
Expansion into new market segments
We drew up a final list of questions that needed answers, together with several tools for collecting data for each — including competitor analysis.
There are multiple ways to gain information about one’s competitors. In this case study, we used publicly available sources and the mystery shopper method.
As the name implies, the method consists of gathering information from publicly available internet sources.
We used the following types of resources:
We selected a total of 25 competing providers and analyzed them according to 4 major criteria (product, marketing, sales, partnerships) and 86 parameters.
Some of the parameters we used:
Some of the insights revealed by the data we collected:
These and other insights gained from the publicly available sources answered most of the questions on our list. However, some of the information was impossible to find online, calling for a deeper analysis.
To obtain information directly from the competitors, you need a convincing legend. It’s worth stressing that the mystery shopper method is legal, as the competitor can share the information with any business that fits its target audience profile.
First, we completed a few preparatory steps:
For each of the 10 competing providers, we completed all the stages that an actual potential customer needs to complete: from filling out an application and registering a dashboard to being ready to integrate the payment solution.
The mystery shopper analysis helped us answer 3 major questions:
1) Our client’s pricing corresponded to the median values for the market. However, the pricing model wasn’t transparent enough: a potential customer would find out the exact fees while talking to a manager. This can have a negative impact on conversion, as some merchants first research and compare the costs of different solutions.
2) The competitors provide as much information as possible through publicly available sources: a separate website page, a wiki-style resource, or a section in a merchant dashboard. This helps optimize the work of the sales team and improves user experience.
3) Most competitors use an automated onboarding system with a user dashboard, which opens up several growth opportunities:
4) Automated onboarding allows the competitors’ customers to start using the solution the very next day without KYC/KYB checks, unless they need to convert cryptocurrency revenue into fiat. This, in turn, opens up additional market segments that our client doesn’t work with.
On top of these strategic insights, we drew up a detailed list of what could be improved — and how. For example, we now had a detailed backlog of features that should be included in the merchant dashboard.
BDC Consulting’s preliminary calculations show that by implementing 80% of these improvements, the client will be able to boost the business line’s net profit by 200-250% within a single year. The implementation process should take between 4 and 6 months.
If you would like to conduct a deep analysis of your company’s competition, contact BDC Consulting using the form on the site. We’ll be pleased to share our experience and assist you with organizing the necessary research.