Do you know what benchmarking is ? In marketing, it represents a strategic analysis of the best practices adopted by companies operating in the same sector.
With this tool, it is possible to answer common questions for any organization, for example:
- How am I doing in relation to the competition?
- Which products stand out the most in the market?
Therefore, benchmarking allows us to analyze the situation and improve products, services, and processes to boost business performance, efficiency, and productivity. This makes it an essential tool for planning, as it allows us to make the necessary changes and continue with what really works.
In this article, you’ll better understand what benchmarking is. We’ll show you the main types, their principles, and how to put them into practice. We’ll also provide examples of tools that will make obtaining this data easier.
Happy reading!
What are the main types of benchmarking?
There are many types of benchmarking that allow analysis to improve a company’s internal processes. The most common are:
- Competitive: This is where competitor data is used as a parameter. The objective is to evaluate the company’s position relative to those competing for space in the same market;
- Generic: Comparison that is applied special database when the company’s processes are similar, even if they are not part of the same segment or sell the same products;
- Functional: Steps are sought that can be applied in the business, even if they are not similar or operate in the same market;
- Internal: The sectors of the organization itself are analyzed, making comparisons between them to identify productivity levels and other indicators;
- Cooperation: This type of benchmarking involves a partnership between two companies, with the goal of exchanging experiences so they can grow together.
What are the principles of benchmarking?
It’s important to follow some ethical principles when comparing company data, as they will ensure proper execution of the process and improved results. Here are the key principles:
Legality
It’s essential that data be collected company positioning legally and transparently; this way, we avoid discussions related to the manipulation of market data, for example.
Exchange
A good strategy when you want to include specific information from a company in your statistics is to make a request to that company and, during the negotiation, offer equivalent data in return. With partnership and collaboration strategies, everyone benefits.
Confidentiality
All information we gather for benchmarking must be for the purpose of research, learning, and development. This means it cannot be used to harm competitors or be improperly disclosed.
Preparation
Preparation is important for optimizing benchmarking, that is, knowing what data is needed , how it will be used, and why it is important for your business .
Step by step to do a proper benchmarking
1. Do a good internal analysis
The first step is to conduct a detailed analysis of your business’s internal processes . This way, you can identify those that need improvement.
2. Select up to 5 competitors
If you choose to perform competitive benchmarking, we recommend selecting up to five competitors to analyze. Ideally, at least three of them should be direct competitors, meaning they operate in the same market, allowing for a more concise comparison .
3. Determine the indicators
Create a table to compare the areas in which your competitors excel. Some indicators that can be studied include:
- Pages indexed in search engines;
- Website loading speed;
- Quality of published content;
- Website and social media design;
- Results obtained in specific campaigns.
4. Obtain the necessary data
There are many ways to gather information for comparative analysis. The most common methods are:
- Field research: Uses research fax list sources such as articles, studies and databases to obtain information that allows for comparison;
- Events: Support events, exhibitions, and conferences, even while networking with other entrepreneurs;
- On-site visits: Considered the fastest and most effective method, this is where data is obtained during a visit with representatives of the competition. This also allows you to experience their culture and processes more closely;
- Mentoring: This involves sharing solutions with those who have overcome similar challenges, allowing for even more realistic experiences.
5. Compare and analyze the results
In this step, it’s time to gather and compare the collected data and verify the results. This will help identify performance gaps in specific strategies and processes.
6. Identify strengths and weaknesses
With the analysis in hand, the next step is to prepare a report with the conclusions drawn, the opportunities found, the areas that need improvement, and the threats existing in the market, along with suggestions for avoiding them.
7. Create differentiation strategies
Once the gaps have been identified and the way competing companies operate is known, it is possible to develop strategies that promote market differentiation.
Instead of copying what works, use the information as a learning experience to create something new and better.
