What is a Competitive Matrix and How Can You Create One?

Rising competition and innovation in the B2B space have kept every company on its toes. As it becomes increasingly difficult to truly stand out, the only way to do that is to constantly monitor competitors.

But how do you document your analysis in a way that lets you see changes made over time?

That’s what a competitive matrix helps with.

Whether you’re a sales rep creating a solid pitch or a marketer trying to redefine your product’s positioning, this tool helps you clearly visualize how your business is different.

In this guide, we’ll walk you through the concept of a competitive matrix, why it’s important, and how to create one.

What is a competitive matrix?

A competitive matrix is a visual tool to compare your company’s products or services against your competitors.

Usually, it’s a table or a grid where you list your company and competitors on one axis and the parameters of the analysis on the other.

How does a competitive matrix help businesses?

Here are a few ways in which these matrices benefit your business:

1. Position your offer strategically

Any type of positioning created in isolation is a waste of time and resources. Everything’s relative, so you need to monitor your competitors.

When you speak with them head-to-head, you’ll clearly see where your offer differs from theirs. Using this data, you can refine your unique value proposition (UVP) and pinpoint areas where you excel and need to improve.

For instance, your matrix might reveal that while a competitor offers lower prices, their customer support and features are not great. If you outdo them in these areas, you’ll have a significant advantage in the market. And you can position yourself well.

2. Make better and faster decisions

Instead of wasting time wondering which areas to focus on in your business, use a competitive matrix. Let’s say you’re planning your product roadmap and notice that many customers choose another product for certain features. It’s time to prioritize those specific features to improve product retention.

Your analysis could also show that competitors don’t offer features you do, while their customers ask for those regularly. Use that to create a marketing campaign to attract more users.

The goal is to stop starting from scratch each time and use the matrix as a tool to make better decisions.

3. Enable your customer-facing teams

Knowing where you stand in the market is an organization-wide priority—not just a department one. If you constantly keep tabs on competitors, share that data with sales and customer success teams.

The best way to do that is through a competitor matrix. It communicates critical information in a digestible format, making it easier for anyone to understand.

For example, if a new product is on the market, sales reps can use this matrix to address objections or highlight differentiators.

4. Build a better product roadmap

If you systematically compare your offerings against competitors, you can easily see where current solutions fall short. That’s where you can swoop in and outdo yourself.

For example, if you notice other competitors don’t offer good reporting features, you could build better analytics dashboards. You could even take it further and use artificial intelligence (AI) to summarize findings. If it’s a feature your target market wants, prioritize that.

5. Always know what your customers want

If a business’s success comes down to one phrase, it’s “Know thy customer.” Observing competitors is not about copying them but about noticing how they’re keeping up with consumer demand.

Inevitably, you’ll learn your potential customers’ preferences, pain points, and current needs. Using this data, you can make better decisions to support that market and increase your market share.

6 types of competitive matrices

There are several types of matrices you can use depending on your goals. Here are our top picks:

1. Competitor comparison grid

A comparison grid is a table in which your company and your main competitors are listed along one axis (typically columns), and key features, metrics, or characteristics are listed along the other axis (typically rows).

It could include elements such as:

• Customer support options
• Integration capabilities
• Implementation time
• Pricing models
• Key features

2. SWOT analysis

SWOT stands for:

• Strengths—where a competitor excels
• Weaknesses—where a competitor falls short
• Opportunities—where you could outdo competitors
• Threats—where a competitor could outdo you

This framework works well for strategic planning and risk assessment as you get a realistic idea of where you stand.

Here’s an example of a SWOT analysis: 

3. Competitive profile matrix (CPM)

This matrix takes a more quantitative approach to competitive analysis. It lists your company and your main competitors along one axis and key success factors (KSFs) for your industry along the other.

Each KSF is assigned a weight based on its importance, and each company is rated on how well they perform in each factor.

A few examples of KSF include:

• Technological innovation
• Price competitiveness
• Customer service
• Financial stability
• Product Quality
• Market share

You can multiply the weights and ratings to give a score for each factor. Sum them to provide an overall score for each company.

Here’s an example of a CPM: 

4. Sales matrix

During a sales call, the sales matrix helps sales teams focus on the right pain points and corresponding features. You can plot customer needs or pain points on one axis and your product’s features or capabilities on the other.

For instance, if a prospect says integration with legacy systems is an issue in the demo form, you know you’ll have to focus on current integrations and APIs to win the deal.

This way, you’re only speaking about the most relevant capabilities and aligning their challenges to the problems you solve.

5. Product feature and benefit matrix

This matrix solely focuses on the features you and your competitor’s product offers. It’s an excellent tool for product and sales teams, as it clearly shows what’s included and what’s not.

This prevents awkward conversations with prospects or inaccurate information in your messaging.

You could also offer prospects a vendor evaluation matrix so that they can do the research themselves during the buying process. This is particularly useful in industries where you make high-value sales, such as software.

6. Gartner’s Magic Quadrant

Gartner’s Magic Quadrant is a proprietary tool developed by Gartner, Inc. It evaluates technology providers based on two criteria: “Ability to Execute” and “Completeness of Vision.”

Based on these criteria, it divides companies into four quadrants:

• Niche Players
• Challengers
• Visionaries
• Leaders

Here’s an example of the 2023 Magic Quadrant for Conversational AI players:

How to create a competitive matrix in 4 steps

Let’s look at how you can create a competitive matrix based on your goals:

Step 1. Identify and document your competitors

Your competitors will fall under four buckets:

• Direct competitors: Companies that offer similar products or services to the same target market.
• Indirect competitors: Companies that might not offer the exact same product or service but solve the same problem or fulfill the same need for your target customers.
• Replacement competitors: Companies that offer an alternative product that could meet a similar need.
• Potential competitors: Companies that don’t offer the same product yet but could start doing so.

For example, for Salesforce (CRM solution), this is what your competition would look like:

• Monday.com (replacement competitor)
• Google Sheets (indirect competitor)
• HubSpot (direct competitor)
• Folk (potential competitor)

Step 2. Decide the parameters for comparison

Next, decide how you compare competitors. Or if you’re doing a complete competitor analysis. Here are a few parameters you can use:

• Features and Capabilities
• Key products or services
• Customer support
• Customer reviews
• Financial metrics
• Product roadmap
• Customer base
• Company size
• Pricing model
• Target market
• Year founded
• Market share
• USP

If you’re creating a more straightforward matrix like a feature comparison matrix, limit it to only that. But include as much as possible for more complex ones, such as a comparison matrix.

Step 3. Gather your findings

This is the most time-consuming part. You could review the following:

1. Website structure
2. Market positioning
3. Marketing materials
4. Annual reports
5. Investor presentations
6. Industry reports
7. Analyst reviews (for larger companies)
8. Customer reviews
9. Social media presence
10. Knowledge centers
11. Market sentiment
12. Product demos
13. Buyer journey
14. Trade shows/conference appearances

While public data is great, you should also do some “mystery shopping.” Take a sales demo or talk to your competitor’s customers. As long as you’re doing this ethically, it’s okay.

Or you could also invest in tools like Unkover that collect competitive intelligence and consolidate that data for you.

For instance, instead of signing up for a competitor’s emails, simply get those flows from Unkover.

Step 4. Compile your findings

Start by choosing the correct format for your matrix. Depending on the complexity of your data and how you plan to use the matrix, it could be a simple spreadsheet, a more visual chart, or even an interactive digital tool.

It’s best to start with a spreadsheet. Document your findings under each column so that it’s easier to see the differences clearly.

If you’re using a scoring system, add a weight system for each competitor. Ensure you also include a legend explaining how each score was calculated.

Start looking for patterns and potential insights. Here are a few questions to ask:

• Are there gaps in the market that no competitor is addressing?
• Are there areas where your company clearly leads or lags?
• Are competitors prioritizing a specific customer segment?
• Are they focusing on particular features?
• What are customers saying about them?

Use this data to build the matrix and take it from there.

Final takeaway

The process of creating a competitive matrix is not just about producing a document. You’re running a marathon to uncover the unexpected and challenge yourself.

Because technology is moving at breakneck speed these days, you can’t treat this as a one-and-done exercise. Either build a team to keep a finger on the market’s pulse or use a tool like Unkover to do the heavy lifting for you.

Using AI, it compiles and surfaces the most critical competitive intel, allowing you to understand your position in the market at all times.

Why not try it out using our 14-day free trial?