What are the best tools and frameworks for product managers to compare competitors' features and benefits?

I agree! However in my opinion SWOT analysis should be accompanied by a PESTLE analysis to get a holistic view of the challenges and opportunities. This may encourage strategic thinking and may enable effective decision making before implementation.

SWOT analysis is an easy framework to perform competitive analysis. However I prefer doing competitive analysis based on data by evaluating competitors based on app and online reviews, readily available data through quarterly results, actually performing research by using competitor product as a user and without bringing personal bias. Later comparing positive and negative of those competitive products by performing user group studies, surveys with your product's users to solve hard problems and make your product positioning more stronger.

In my experiences (both on the buy-side of advertising tech, at P&G; and on the product-side, at Amazon Ads), there is a big disconnect between product managers and buyers / target customers. Buyers build request for proposal (RFP) templates to compare the different solutions from competitors, based on how they respond to their specific needs. RFPs start with business needs and translate them into tech needs. This is how PMs can approach it: what are customers trying to achieve? what solutions do they need? what do they value the most? And ultimately, after all of this in unpacked across multiple business needs, solutions, technologies and features... how do I compare to competition? What gaps do I have? How do I want to differentiate?

There are several reasons why relying solely on a feature comparison can be insufficient: Features do not always translate into benefits: Just because a product has more features doesn't mean it is better. User experience is more than just features: The overall user experience involves more than just a list of features. Factors such as ease of use, design, and aesthetics can all have a significant impact on how users perceive and interact with a product. Different users have different needs: Different users have different needs and preferences, and a feature comparison may not account for these variations. Context matters: The context in which a product is used can significantly impact its usability and effectiveness.

In my experience, a visual tool that shows how your product and your competitor's products differ in terms of specific features, functions, benefits and prices is useful only when you are trying to go heads up against your competitor. While this is a useful exercise to do & keep up with the competitors, as an organization and as a Product Manager, I believe it is important to understand the job to be done, the customers' expectations and value you are driving towards so that you can build products that customers will like & find value. This will not only help us compare against competitors, it will also help identify gaps and position ourselves to be a differentiator as against being a follower.

Feature Upvote is a tool that allows users to suggest, vote on, and prioritize product features. It can be used to track competitor product feature requests and user feedback. By monitoring competitor feature requests and user votes, you can gain insights into what users consider important and identify potential areas for improvement or innovation.

Each product is different and remember our goal is not to copy features of competitors and build exact replica. Users are using our product than competitors because it is solving their needs which are unmet through competitor product in some sense. Rather than comparing features it would be a good idea to tear down competitive product as a team and through market research studies and figure out what problems those products are solving. Later work with your user groups and find out if those problem are worth solving for your users. If there is a confluence then solve those problems by building a prototype for that feature and test it out. Iterate based on qualitative and quantitative feedback to build a lovable product.

It's important to always keep your customer segments and their needs at the center of your value proposition. After you identified the most important jobs, pains, and gains that each customer segment is trying to achieve or avoid make sure that your value proposition addresses these key elements in a unique and compelling way. A successful value proposition is not just about listing the features and benefits of your product, it's about clearly articulating how your product or service solves your customer's problems or helps them achieve their goals better than any alternative solutions in the market.

Value proposition should be tied with feature comparisons. It is easy to get into a 'feature war' mentality where you focus on plugging the gaps. BUT, you should be very clear on your product's unique value and strengths and make sure you are optimizing those. Consider whether a gap is really important or if your resources are more effectively applied on further differentiators.

Value proposition Canvas is a great way to figure out the values your product is providing to the users compare to the competitor product. Remember if there is no 1:1 match between both the product's user segments there is no direct mapping or value score you can figure out.

To implement the Kano Model effectively, focus on developing Must-Have features first, then work on improving Performance Attributes, and finally add Delighters to enhance the overall customer experience. By prioritizing features based on the Kano Model, you can ensure that your product delivers the most value to your customers and maximizes customer satisfaction.

A common perpetual map that I employ is workflow based click map between my product and that of the competitors. In the Healthcare IT domain, a common complaint that most users have is too many clicks to do a task. So I base my metric around the number of clicks taken to do a simple task like Scheduling an appointment, Registering a patient, Documenting the visit etc., While the same cannot apply to all domains, it is best to start with the most common workflows for your user personas and map their journeys. Then compare it with that of your competitors. If anything, you'll atleast come out identifying the gaps in your product.

If you add criteria weighting, this is a very reliable model. In my experience, the highest weighted score will be that of the actual winner in more than 90% of the time. That’s based on doing thousands of blind and anonymous win/loss interviews where the respondents offer first unprompted criteria and then are presented commonly cited criteria that were not offered but possibly overlooked. This means that a decision model based on buyer data can be used to predict the impact of marginal changes to weights and ratings on outcomes. And with multiple iterations and Monte Carlo analysis, you can calculate uncertainty of the results as well. It’s a very powerful tool for “what-if” analysis of various product or marketing investment options.

Obsessing too much over your competitors can lead to a "me too" mentality, where you're always playing catch-up instead of creating something unique and innovative. Instead of just focusing on what your competitors are doing, it's crucial to understand your customers' needs and pain points. Spend time with your customers and listen to their feedback to build a product that truly solves their problems and stands out in the market. Tools and frameworks are only as good as the people who use them. You need to have a deep understanding of the market, a creative mindset, and strong analytical skills. Without these, even the best tools and frameworks won't help you create a successful product.

The user Experinec research team can run studies, surveys and interviews with customers who prefer to use a competitor’s product to understand what drives their motivation to do so. This is a good way to understand why a certain feature or a product is solving a customers need well.

As a Product Manager, staying ahead in the competitive landscape is crucial. To compare competitors' features and benefits effectively, Conduct a SWOT analysis, this framework provides a comprehensive overview. Create a feature matrix to compare features and benefits side by side, helping you visualize gaps and advantages. Collect customer feedback and preferences through surveys or interviews to gauge competitor perception. These empower you to make data-driven decisions, stay ahead in the market, and deliver value to customers.

Continuously iterating and validating your value proposition with your customer segments through customer feedback and data analysis can also help you refine and optimize your product's value proposition over time.

Unless it is a two horse game, Most markets are imperfect. So a competitor's product is rarely a threat. It is actually their process that makes a real difference. A competitor with largest market share performs the same basic activities but does them really well. On the other hand, A competitor with second largest market share, probably has the internal process tuned for innovation. Instead of product design, process design framework should be prioritized to win over competition. That's my opinion..