Using the Competitive Analysis Matrix Tool You and your team might think you are creating a new marketplace with your product, but how can you be sure? Chances are you actually are entering an existing market. Therefore, you want to study how all the current digital solutions address the needs of your target customers. To be competitive, you need to know what’s out there, what has worked, and what has not worked. That’s why conducting market research on the competition is a crucial component of business strategy. You want firsthand knowledge of the good and bad user experiences provided by your competitors. If done thoroughly, the research can provide a treasure trove of insight into current trends and outdated manifestations of mental models. It will also help your team learn about the competitors, their best practices for design, and what types of customer segments use their products. To connect the dots, though, you first need to collect them. I have found the most efficient way to do a comprehensive competitive analysis is to collect all of the data in a matrix. It’s the most obvious way to do a cross- comparison, and by using a spreadsheet, I can methodically collect data and not miss anything while I’m surfing around to research. The matrix helps keep track of everything that needs to be compared. When it’s complete, I can rationalize my position with a cogent understanding of numerous qualitative and quantitative data points. I use Google spreadsheets instead of Excel because I prefer a free cloud-based tool that is easily accessible to as many people — teammates and stakeholders — as possible. It’s important that everyone has access to the most up-to-date research, and this way I avoid blank stares during important discussions. Figure 4-3 depicts an example of a spreadsheet that I created using Google documents specifically for conducting competitive research. I am going to use the research that I conducted on the Busy Man’s Shopping Site for explanation and sample data. (As I first mentioned in the Preface, I’ve included a toolkit with this book. It’s for you to use with your teams. Refer to it for details on accessing the Competitive Analysis Matrix.)