Competitive benchmarking allows you to use your competition as a benchmark, measuring how your company is doing against the highest-performing brands. This allows you to gauge where your company stands, including where it shines and where it could use some improvement. Overall, the advantages of competitive benchmarking include the following:
You Can Rate Yourself Against Expectations
Competitive benchmarking allows you to better understand the norms in any industry and the expertise required for success. It allows you to compare and contrast different aspects of your business through your achievements, profits, and customer base.
You Can Motivate Employees
Knowing how your company holds its own against other businesses can provide the motivation you just might need; it can encourage your employees to improve as a team and on an individual basis. Goals are easier to strive toward when they’re clear.
You Can See More Opportunity
Competitive benchmarking allows you to see opportunities you might not see otherwise. If a competitor is particularly strong in a specific area, for instance, you can learn what they’re doing to make themselves stand out. This can lead to business growth.
You Can Learn About Various Aspects of Your Business
There are several types of competitive benchmarking, giving you insight into various aspects of your company profile. This includes:
– Financial benchmarking, which measures your revenues, profits, equity, and more;
– Strategic benchmarking, which measures items like tech use, internal initiatives, market shares, and business models;
– Product benchmarking, which measures return rate, product costs, material costs, and product features; and
– Performance marketing, which measures your social media reputation, customer satisfaction, customer retainment rate, and more.
Competitive marketing allows you to tap into creativity, find more paths to profit, enhance your strengths, and improve your weaknesses. Once you know where you stand, you can stand out even more. Need some guidance on competitive benchmarking or anything else? Give us a shout and we’ll be happy to help.