Successfully benchmark your business can provide insight into how well each aspect of your business is performing. Additionally, allowing you to discover what areas need improvements. Also, while helping you to develop a plan towards achieving those improvements.
Your Business vs Competition
Benchmark involves measuring the performance of your business against a competitor in the same market. Comparing your business to others is a valuable way of improving your understanding of your business performance and potential.
At its best, benchmarking a business acts as a tool to help evaluate opportunities for improvement. Such as,
- Identifying and prioritizing specific areas of opportunity
- Understanding your customers’ needs better
- Identifying your strengths and weaknesses
- Setting goals and performance expectations
- Monitoring your performance and effectively managing change
- Understanding your competitors to become more competitive
Use these 6 steps to practically benchmark your business against your competitors,
Identify What You’re Going to Benchmark
Choose things that you can measure to benchmark. To illustrate, the number of active users, new user addition, etc. There are things like customer loyalty that we can’t measure in general. Nevertheless, asking questions like, are you satisfied with our product? and would you recommends us to your friends? might be helpful to benchmark your business to measure customer loyalty.
Start with targeted and specific questions. Moreover, the questions should be specific, capable of being explored. Either, using qualitative or quantitative research efforts and in line with your business strategy. If you haven’t already! it’s recommended to do market research.
Identify Your Competitors
Identifying the right competition or alternatives to your product or services will help you successfully benchmark your business. Write down a list of who your competitors are; most businesses benchmark within the same industry. In addition to this, identify effective tactics used by your competitors, and areas in which their business is performing better.
Outline Benchmark Objectives
The objectives of a business can be formulated into measurable data to set benchmarks for your business. Certainly, these clearly defined benchmarked objectives, clearly explains if the company or business is following the right path.
Accordingly, after the results of the analysis have been interpreted and communicated to the appropriate people, goals should be established. Further, these should be concrete, attainable and in line with your corporate strategy. Make sure you list all your goals in your marketing plan.
Watch the Trends
Equally, look at recent statistics to analyze any current trends for insight into how fast your industry is moving. Watch the Trends to know how you can plan ahead to keep your business in tune with customers’ needs.
Alternatively, there might be new trends with which your business might me measured against. The benchmarking of successful business keeps evolving constantly. Owing to, your industry might be already following a set of benchmarks; on which information and data are being collected upon. Therefore, use them to your leverage of your business.
Develop an Action Plan for Your Objectives
By developing a benchmark for your objectives, the management and employees clearly now know what needs to be their action plan. Even so, benchmarks will act as a clear measure to define goals, action plan and success of the business. Define specific, concrete actions to be taken. Your actions should detail the tasks involved and include specific names and dates associated with each task.
Monitor your Benchmark
Continuously monitor the results of the benchmarking efforts and ensure the action plans are consistently applied. In the long run, implementation of an benchmarked action plan, will clearly guide the path for the business to move in. Evaluate your benchmarks and compare it with your competition and other industry data to monitor how successful business is performing.