What is a Bidder Comparison Matrix?
A bidder comparison matrix is a tool used to develop a proposal strategy. Organizations use a bidder comparison matrix to showcase their own capabilities in comparison to their competitors. It helps the user to find ways to distinguish the organization, improve its value proposition, and even forecast possible teaming arrangements.
It is an excellent collaborative tool for both the seller and the prospect. It is a key tool used for gaining competitive intelligence. Development of a bidder comparison matrix is essential in a highly competitive environment.
Why is a Bidder Comparison Matrix used?
- It helps to identify competitors’ strengths and weaknesses.
- It helps in analysing how your solution may be perceived when compared to your competitors. It helps in measuring the effectiveness of your position.
- It helps to magnify your company’s strengths, minimize your weaknesses.
- It shows your company’s capabilities and proposed innovations in the most positive way.
- It highlights the areas to focus on while developing a business proposal.
How to make a Bidder Comparison Matrix?
Gather Sufficient Data And Information
Have a group of externally focused individuals who have knowledge of the relevant market, customer, and competitors. Some sources of this information include Request for Proposal (RFP), Customer, Customer websites, Social media accounts, Colleagues, Online searches, Industry news and Public records.
List All The Prospect’s Issues
This can include customer needs and preferences, hot buttons, and key requirements. Issues may be both acknowledged and hidden agendas. As the opportunity matures, the issue list becomes more specific and eventually reflects the evaluation criteria.
Assign A Weight To Each Evaluation Criteria
This is to indicate the relative importance of issues. Establish the weight for each issue based on any one of these three factors:
- Use the prospect’s evaluation criteria
- Assign a weight, forcing the total score to add up to 100
- Assign an arbitrary weight such as 1 to 5
Assign points for your company on a 1- to 10-point scale (1 is low and 10 is high), indicating your strength on each issue. Base your assessment on your best estimate of the customer’s perceptions. Be objective. To overinflate your position misleads the team and management.
Fill In The Data
Complete the matrix by indicating your estimate of the prospect’s perception of each competitor’s ability to satisfy each issue.
The total score reflects the relative standing of your team versus the likely competitors. The scores also illustrate the competitiveness of each bidder as it relates to issues that concern the customer.