Competitive benchmarking is the process of using a set of metrics to understand your company’s position in the competitive market. It compares the performance of an organization with its competitors. Benchmarking is used to measure and track the performance of an organization over time, in relation to competing organizations.
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In order to conduct competitive benchmarking, you must identify the key performance indicators (KPIs) you are going to use to compare your organization with its competitors.
These are a few KPIs you can consider tracking:
Brand awareness describes the degree of customer recognition of a product or organization by its name. Companies with high brand awareness enjoy increased sales, increased credibility, and increased customer loyalty, among many other advantages.
The more web traffic a company’s site has, the more customers they are likely to have. If you realise you have less web traffic than your competitors, you can study the strategies they are using to create a high web traffic, in order to do the same.
Brand sentiment refers to the underlying connotations and emotions expressed in a mention of your brand online. Tracking brand sentiment will give you an idea of the different contexts within which your brand is being talked about, and whether it is positive, negative, or neutral.
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These are a few advantages of conducting competitive benchmarking:
Competitive analysis involves doing a thorough research on your competitors. It evaluates different parts of their business, such as their product features or messaging. Competitive benchmarking, on the other hand, involves keeping track of your competitors’ performance over time, with the use of certain metrics.
These are three distinct ways in which benchmarking is used: