Benchmarking, or benchmarketing, is a market research technique that focuses on comparing a company’s products or services with those of its competitors. In English, it represents a “Reference Point.”
In other words, benchmarking is a way to analyze the competition to determine how a company is performing relative to them.
What is benchmarketing?
The process involves tracking a series of key performance indicators (KPIs) that can be easily measured and compared. These KPIs can include sales, price, profit, market share, number of employees, and more.
It is often carried out using specialized software that can collect and analyze the necessary data to make comparisons with the competition.
It can be used for various purposes, including competitor analysis, marketing strategy development, setting performance goals, etc.
Overall, benchmarketing can be a valuable tool for any company looking to improve its performance and competitiveness in the market.
What do I need to do a benchmark?
First, you need to identify the specific features you are looking for in a product. This can include things like price, performance, quality, ease of use, etc.
Identify
Once you have identified the specific features you are looking for, you can start searching online to find products that meet those criteria.
You can use search engines like Google or specialized product comparison websites to find options that fit your benchmarking needs.
Compare your goals and products
Once you have found products that meet your criteria, it’s time to start comparing them. Consider all the features you identified earlier and try to determine which product is the best overall.
You can also read product reviews to get an idea of which products are most popular and which are better for certain features.
Choose your strength
After comparing all the products, you should have a good idea of which is the best product for your needs. Make sure to consider all aspects that you deemed important and not just the price. Now all you have to do is buy the product! And, of course, market it better than your competition.
Benefits of benchmarketing
It can be a very useful tool for several reasons.
First, it can help you understand how your company compares to the competition.
This information can be very valuable, especially if you want to make changes in your company to improve your competitive advantage.
Additionally, it can help identify areas where your company may be falling behind compared to competitors.
Finally, benchmarking can also help you understand industry trends. This can provide valuable information to make informed decisions about the future of your business.
The 11 types of benchmarketing
1. Internal Benchmarks
An organization can set standards for itself and compare its own progress over time. This is useful to evaluate if a new process is working as well as the previous one, or if the organization is meeting its own goals.
2. External Benchmarks
Comparing an organization with others can give insight into its performance relative to peers. This can be done in terms of specific metrics like financial performance or more general measures like customer satisfaction.
3. Competitive Benchmarks
In many industries, organizations compete directly for market share. In these cases, it can be useful to compare specifically with these competitors to understand where you have an advantage and where there is room for improvement.
4. Performance Benchmarks
Organizations often track a range of performance metrics such as productivity, safety, or quality. Comparing these metrics to standards can help identify areas where performance is declining and where corrective actions may be needed.
5. Strategic Benchmarks
Strategic benchmarks examine how successful organizations achieve their goals. This can be useful to understand different approaches and see what could work for your organization.
6. Customer Benchmarks
An important benchmark for any organization is how well it serves its customers. This can be measured in terms such as customer satisfaction, retention, or repeat business.
7. Social Media Benchmarking
This type of benchmarking involves comparing your company’s social media performance with other companies in your industry. It can help you understand your position in terms of engagement and reach and identify areas for improvement.
8. Competitor Benchmarking
This involves studying your closest competitors to understand their strengths and weaknesses. This information can help you develop strategies to improve your own business and stay ahead of the competition.
9. Industry Benchmarking
This type of benchmarking examines general trends and benchmarks in your industry rather than focusing on specific companies. It can help you understand the current state of the industry and identify areas for improvement in your company.
10. Financial Benchmarking
This type of benchmarking examines your company’s financial results compared to other companies in the industry. It can help identify areas for improvement in financial management and make better strategic decisions on where to allocate resources.
11. Customer Service Benchmarking
This type of benchmarking examines your company’s customer service performance compared to other companies in the industry. It can help identify areas where you need to improve your customer service and develop strategies to better meet customer needs.
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