Competitive benchmarking helps a brand know where they stand in a market full of similar brands. It shows you how your brand measures up in comparison to your competitors.
Competitive benchmarking helps identify gaps in process, strategies, and techniques to achieve your goals. It shows what your competitors are doing right to help you learn. By knowing what efforts you need to put, your marketers can take advantage of your strengths and use them to win over important trends.
Competitive Benchmarking involves comparing metrics of your brand with that of your competitors and the entire industry you are competing in.
The comparison of vital metrics helps a business evaluate its performance. This helps to learn about what the business is excelling at and what needs improvement. Looking into your competitor and overall market performance you can also identify best practices. Learning what makes them different and adopting good industry trends can give the business an edge over the competition.
With most businesses becoming digital, Competitive Benchmarking also involves comparing digital metrics. The aim is to gain insights from competitor’s digital marketing performance to improve your marketing efforts.
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You need to be clear about what metrics you want to measure and compare with your competitors. Before starting the competitive benchmarking the entire management should be on board with the metrics chosen for comparison.
The metrics are more valuable when they align with the goal a business wants to achieve. Keep the metrics simple, attainable and monitor them over time.
Brand Awareness: Measure direct traffic on your website, i.e., how many people search for your website by intentionally typing your URL
Reach in Social Media: Followers, likes, comments, retweets/ reposts, shares, etc., can show you much traffic social media brings to your company’s website.
Ranking: Evaluate how much traffic your keywords and landing pages bring
Growth Rate: Benchmark site traffic numbers
Product Success: Figure out the most popular products and services, improve your own offers by comparing your success against your competitor’s.
Customer Satisfaction or CSAT
Net Promoter Score or NPS
Share of Voice: Involves calculating how wide your share of advertisement and traffic is against your competitors.
Use these digital metrics to compare and learn what you can do to improve your consumer’s experience. Use the insights from the Competitive Benchmarking and enhance marketing strategies to achieve business goals.
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Competitive Benchmarking is tracking and monitors the competitor while the business is in motion. You measure and evaluate the performance of your business against your competitors. Here the aim is to gather data on competitor’s performance over long-term strategies and identify industry trends.
Competitive Analysis involves research by analyzing every move made by your competitors. The process involves scrutinizing every tactic and strategy the competitor uses. The aim is to see how they market themselves and promote their brand.
This requires you to understand the process you adopt and identify ways you can optimize them. It helps you to understand the internal process of your business. It allows you to examine how your competitors complete their processes. As a result, you learn ways to complete your process more efficiently.
The aim is to strengthen the marketing strategies a business adopts. Comparing strategies with competitors helps understand what makes the winning business more competitive. It helps learn what approaches successful businesses use to stand on top of the market.
With this benchmark, a marketer cares about the outcomes/ performance. The outcomes could be of the overall performance or the performance of a specific team.
For competitive benchmarking, you need to compare your metric with those who are the best out there in the field of competition. Comparing with the business that is performing better than you can help you figure out ways to improve your strategies and push your business to success.
Decide which metrics or performing indicators you want to compare and find those businesses that are performing well consistently in those areas. You can look for competitors in your industry for relevant points of comparison but you can also look outside of your industry.
Against Close Competitors: You can start your competitive benchmarking against those businesses that are similar to your business. They could be similar in market position or in size. This way you can identify opportunities to get an edge on them.
Against Key Players: Benchmarking against the Business that know how to play their strategies can help you learn some winning deals. You can gain insights and learn winning strategies to adopt and evolve them to suit your business goals.
Against Industry Disruptors: You can also begin your competitive benchmarking by comparing against those businesses that change the standards of your niche. These businesses introduce strategies and tactics that most don’t think of which makes them different from the crowd.
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Competitive Benchmarking helps a business to gauge its success in comparison to other businesses performing in the same industry. It helps identify the issues your company may have and show the reasons why your company falls short against competitors who excel in the same field. As a result, it helps you to improve your ways of operating and makes changes.
Competitive benchmarking identifies the strength and weaknesses your brand has in comparison to your other brands. You not only learn and identify which areas you need to improve. But, also learn which areas you are performing well in order to take advantage of them. It creates awareness among the management about the company’s performance.
It helps a company identify what sets them apart from the rest. You can determine your USP and use it to win over the industry trends that are relevant to the areas in which you excel. By utilizing your key elements you can increase profits and position your brand in the market with better opportunities.
Competitive Benchmarking helps you to get a clear picture of what you are doing and also shows what your competitors are doing. You can learn from their best strategies and mix them with your strategies. You can identify trends and adjust your goals and tactics accordingly.
However, it is never too good to focus completely on the competition. The aim is to learn to improve your business process and identify your key differentiators.
Benchmarking is the process of comparing a brand’s products, services, and processes against the leading companies.
The 4 types of Benchmarking are: Internal, External, Performance, and Practice.
The aim of Competitive Benchmarking is to determine the best strategies to achieve business goals by comparing relevant metrics with competitors. The process involves learning where your company stands. Comparing your business with competitors leads to gaining insights to adopt the best strategies for the business.