Knowledge is power but when it comes to competitor monitoring, knowledge has its limits.
It’s not just about knowing your competitors like the back of your hand. There are downsides to competitor intelligence that you may not be aware of.
Yes, competitive monitoring is an important piece of running a profitable business and in a digital-first environment, it’s easier than ever to get up to date about your competitors’ activities.
But there are things to be considered. Competitor tracking has its pitfalls. Don’t fall into its traps.
You may be tempted to track everything you can track about your competitors but being selective is often the better move.
While you can track anything to your heart’s content, you should carefully consider the following while pursuing your business goals.
Here are some considerations when tracking competitors.
Why You Should Be Careful About Monitoring Competitors
- You can be overwhelmed by the data you’ve collected
- You might have inaccurate and outdated data
- Competitor data alone cannot give you insights or context
- The information you collect may not be relevant to your business
- Competitor monitoring may let you lose sight of your brand
- Competitor monitoring can take up a lot of your time
- Your competitors won’t like it if they know they’re being tracked.
- Frequently Asked Questions
- How can I avoid information overload when monitoring competitors?
- What are the ethical concerns with competitor tracking?
- Is it possible to spend too much time tracking competitors?
You can be overwhelmed by the data you’ve collected
Gathering data about your competitors is easier than ever thanks to monitoring tools that do the heavy lifting for you. However, you run the risk of information overload, not knowing what the numbers are saying about your competitors’ performance.
This is especially true if you conduct competitor analysis without setting goals. Data is nothing without insights and actionable information. You need to filter through vast amounts of data to get something useful out of it.
You might have inaccurate and outdated data
There’s also the issue of collecting accurate and up-to-date information. Monitoring can only collect past actions and often not in real time. Behaviors and strategies can change quickly and it wouldn’t be reflected right away.
Also, data cannot give a comprehensive look at your competitor’s marketing strategy. There will always be gaps to fill, especially if they’re utilizing in-person campaigns, so make sure to do manual research to supplement monitoring tools.
Competitor data alone cannot give you insights or context
Context is important but looking at data and information alone won’t give you the proper context or meaning to be derived.
For example, you might have a competitor who has decreased their prices. However, you wouldn’t know the reasoning behind that move and how it’s affecting their sales.
The information you collect may not be relevant to your business
Not all data is useful or relevant. Tracking irrelevant metrics will only waste your time.
You may be tempted to track everything you can track about your competitors but being selective is often the better move. Set your goals and parameters and only collect data that will help you meet your objectives.
Competitor monitoring may let you lose sight of your brand
You can get so caught up with competitor monitoring that you neglect your own strategy. When you always look to your competitors for guidance, you can lose your uniqueness.
Competition is just one consideration when researching how to better engage your target audience. Competitors are not the end-all be-all of sharpening your marketing strategies. You also need to pay attention to the value you’re bringing and what your customers want.
Instead of imitating, brands should innovate, too. Competitor monitoring is all well and good but emphasizing it too much will cripple you.
Don’t follow trends blindly and strive to improve on what’s already out there.
Competitor monitoring can take up a lot of your time
Manual competitor tracking is hard work. Monitoring ads, emails, landing pages, prices, products, and customer sentiment adds up to a lot of time every week, especially if you want to be thorough.
On top of that, companies switch up their content and creatives all the time so there’s always something new to add to the list of things to track and analyze.
We recommend using competitor tracking tools to speed up this endeavor.
Panoramata is one handy tool to have in your arsenal if you want a comprehensive look at your competitor’s funnels and campaigns. It tracks the important stuff for you, from products to landing pages and everything in between.
Your competitors won’t like it if they know they’re being tracked
Ethical and legal considerations are part of competitor tracking. You don’t want to break the law or violate codes of ethics.
Always respect user privacy and don’t mess around with intellectual property or trade secrets. Dabbling in unethical practices will backfire on you.
At the very least, it can make you lose the trust of your customers. Tread lightly when it comes to competitor privacy and data collection.
Is it legal to monitor competitors?
Competitor monitoring is a perfectly legal practice as long as you collect publicly available information. By publicly available information, we mean anything posted on their official website, social media sites, newsletters, landing pages, and other platforms accessible by the general public.
However, you cannot collect trade secrets or information kept internally. Don’t solicit private information from the company’s employees or hunt for top-secret documents through hacking or spying. That’s when you venture into illegal and unethical territory.
Frequently Asked Questions
How can I avoid information overload when monitoring competitors?
To avoid information overload, focus only on key metrics that directly impact your business goals. Use tools that allow you to filter and prioritize data, so you're not overwhelmed by irrelevant information.
What are the ethical concerns with competitor tracking?
Ethical concerns arise when data collection methods cross into privacy violations or unfair practices, like scraping sensitive data. Stick to publicly available information and always respect privacy laws to avoid crossing ethical boundaries.
Is it possible to spend too much time tracking competitors?
Yes, spending too much time on competitor tracking can divert attention from your own business growth. Set a time limit for analysis and balance it with time spent on improving your own strategies and customer relationships.
