Simplifying Decision-Making with Product Matrices
As a product manager, you’re constantly faced with decisions that can make or break your product’s success. From determining which features to prioritize to deciding how to allocate resources, the choices can be overwhelming. That’s where product matrices come in – a powerful tool to help you visualize and make sense of the information.
What is a Product Matrix?
A product matrix is a simple yet effective way to compare multiple products or aspects of a single product against different dimensions. It helps you identify patterns, opportunities, and challenges, making it easier to make informed decisions. There are two primary types of product matrices: Product Feature Matrix and Product Market Matrix.
Product Feature Matrix
This type of matrix helps you understand how different products in your portfolio complement or overlap with each other. By mapping products against features, you can answer questions like:
- Is there too much overlap between two or more products?
- Why is one product selling well when a similar product is not?
- Why is your most feature-rich product not selling as well as other, more basic offerings?
| Product | Feature A | Feature B | Feature C |
| --- | --- | --- | --- |
| Product 1 | ✓ | ✓ | ✗ |
| Product 2 | ✓ | ✗ | ✓ |
| Product 3 | ✗ | ✓ | ✓ |
Product Market Matrix
This type of matrix helps you analyze your products against market conditions, identifying strategies and opportunities for growth. There are several types of product market matrices, including:
- BCG Matrix (Growth Share Matrix)
- Hofer’s Product Market Evolution Matrix
BCG Matrix (Growth Share Matrix)
This classic matrix helps you evaluate products based on their growth potential and market share. By categorizing products into four quadrants – Cash Cows, Rising Stars, Pets, and Question Marks – you can determine which products to invest in and which to divest.
| Product | Growth Potential | Market Share |
| --- | --- | --- |
| Product 1 | High | Low |
| Product 2 | Low | High |
| Product 3 | High | High |
Hofer’s Product Market Evolution Matrix
This matrix helps you analyze products based on their maturity and competitive position. By understanding where your products are in their lifecycle, you can make informed decisions about resource allocation and investment.
| Product | Maturity | Competitive Position |
| --- | --- | --- |
| Product 1 | Introduction | Weak |
| Product 2 | Growth | Strong |
| Product 3 | Maturity | Weak |
Creating Your Own Product Matrix
While product matrices can seem complex, they’re actually simple to create. Start by identifying the parameters you want to analyze, and then use a template to map out your products. You can customize the template to fit your needs, using it to inform decisions around a single product or multiple products.
Download a product matrix template to get started.