Why Competitor Analysis is important

We were one of the most loved products in the market

Sales were increasing, customers were raving about the product

Even the analysts were putting us in top quadrants, waves and ranking

It seemed like the party would continue

This was somewhere in mid 2000s

 

Smaller competitors were selling at $1000 a pop or lower

We were selling at $250-300K at lower end

Larger deals were in $millions

It hardly seemed like we should worry about the #competition

 

We had more of everything

– more features

– more awards,

– more deals, more customers

 

Competition had less of everything

– low price

– less features

– could handle less data and very few users

 

It also took less time to setup and use

 

Competition product could be downloaded in minutes and could be up and running in a day or two

Our product took a few hours just to download and setup required experts of our tool, data and more.

It was usually weeks before you could see the first report and get value.

 

Our competition analysis focused on features and capabilities and deal sizes and pricing.

We thought we were still winning.

 

We didn’t know this at the time, but found out later…

– Small competitors were winning 2-5 seat deals coming in below $5000 approval thresholds

– Some of the same teams that used reports and dashboards from our product were also buying these tools and using these for faster analysis

– we focused on SSOT – single source of truth and data lineage and scale

– competitors were focused on ease of use and fast time to value even if the data was not always 100% clean and accurate..

– we were friends with IT

– competition was fast becoming friend of the business

 

Bit by bit we lost momentum.

Our product continued to survive but our competitors thrived.

 

It’s not enough to track your competition and do a comparison

To truly understand a threat you must look at their pricing, GTM tactics and targeting along with customer adoption and much more..

 

Easier said than done

 

Sometimes these threats don’t show up as big enemy ships on the radar

But are just taking away sales below the radar…

 

What do you see in your market?

Do you track the competition?