Competitive Benchmarking and its Advantages

These are a few advantages of conducting competitive benchmarking:

• Improves organizational culture: Benchmarking allows companies to identify their strengths and weaknesses compared to their competitors. This creates a level of awareness in the working environment, stimulating a culture of continuous improvement.
• Encourages organizations to set actionable goals: Benchmarking clearly outlines what your performance related goals should be. This not only provides a sense of direction, but also encourages the setting of actionable goals.
• Helps keep track of competitors: Benchmarking ensures that you constantly keep track of your competitors. This will help your organization be better equipped while dealing with changes within the market, and can help counter competitor strategies promptly. 

• Identifies areas that require improvement: When you conduct competitive benchmarking, you get a clear idea of your organization’s areas of weakness in comparison to competition. It shows you where you need to improve and by how much you need to improve.

• Increases Sales and Profits: Benchmarking encourages and enables companies to improve their functions, products, and services. Improved operations are likely to lead to improved customer satisfaction, and higher sales and profit levels.