7 Common Competitor Monitoring Mistakes and How to Avoid Them

You know you need to keep tabs on your competition to understand your place in the market and figure out how to stand out. But executing a solid competitive analysis can be tricky. Many B2B and SaaS companies struggle with this, often due to not having the right systems in place or focusing on the wrong competitors. Let's dive into seven common mistakes in competitive analysis and how to dodge them like a pro.

1. Focusing Only on Direct Competitors

It’s easy to zero in on direct competitors—those who sell the same thing to the same audience. If you’re offering drag-and-drop graphic design software for $10 a month, you might look at Snappa, Canva, and Easil. That’s a good start, but don’t stop there.

You need to look at:

  • Direct Competitors: Those who sell the same product to the same market (e.g., Snappa).
  • Indirect Competitors: Those offering similar capabilities in a different way (e.g., Adobe Photoshop).
  • Potential Competitors: Those competing for the same SEO space (e.g., a photographer's blog post on "best-featured images for blog posts").

Keeping track of all these competitors gives you a full view of the market landscape.

2. Focusing on the Wrong Competitors

Sometimes brands mistakenly monitor the wrong competitors. For example, if your payroll software is designed for freelancers, don’t compare it to enterprise solutions meant for large companies. These serve completely different customer bases and needs.

Ensure you're focusing on the right competitors to gather relevant data.

3. Lacking a Systemized Approach

Competitive intelligence isn't just about Googling keywords and taking notes. You need a structured and documented approach. Ideally, form a CI team from various departments like sales, marketing, product, and customer service. Legal should also be involved to ensure everything is above board.

Your process should cover:

  • Methods and tools for research
  • Types of data to collect
  • How to record, share, and analyze data
  • Number and types of competitors to track
  • How to leverage the data

4. Looking Only at One Channel

To get a full picture, don't rely on a single data source. Check out competitor websites, social media ads (like those on Facebook Ad Library), emails, and more. Each channel offers different insights into their strategies and target audiences.

5. Conducting Analysis Just Once

Competitive analysis isn’t a one-time thing. Markets evolve, and so do competitors. Keep an eye on new entrants and regularly update your data on core competitors. Aim for a review every six months to a year to stay current.

6. Ignoring Automated Tools

Using automated competitor tracking tools can save you tons of time and ensure you don’t miss crucial updates. These tools help monitor pricing changes, new product launches, and marketing strategies, keeping you ahead of the game.

7. Not Turning Insights into Action

Collecting and analyzing data is only part of the battle. You need to act on your insights. Share findings with your team, allocate resources, and ensure everyone is aligned with your strategy. Evaluate the outcomes and refine your approach continuously.

Wrapping It Up

Effective competitor monitoring is key to staying ahead in the startup race. Avoid these common pitfalls by focusing on the right competitors, not using a systematic approach, leveraging multiple data sources, and keeping your analysis ongoing. Use automated tools to streamline the process and ensure you’re always in the loop.

Stay sharp, stay informed, and keep innovating. With the right approach, you'll not only keep up with the competition—you'll outpace them.