Some brands bring a next-level experience and are known for it. Chick-fil-A’s speedy, efficient drive through service, for example. These types of strong reputations help you know what is or isn’t going to help you compete if you’re going up against a certain brand. But how will you know where you can press your competition and excel where they lag? If you don’t know how to pick your battles you could end up in a contest you’ll never win, and if you can’t compare yourself to the strategies and processes that see the most success, you’re giving yourself an uphill climb to improvement. Your answer lies in competitive benchmarking.
Unveiling the power of competitive benchmarking
Diving into competitive benchmarking is a bit like being in the CIA of the business world. You start with gathering as much data as possible on your products or services and those of those in your industry. The investigation can lead you through a maze of customer opinions, the perceived value of your offerings, and how deeply you’ve penetrated the market. You may even research how your competition runs their business and how they approach new markets. This outline of intelligence will make up the picture you’ll use to change how you do business.
Now, imagine fitting all those different pieces of the intelligence puzzle together. Grouping data sets. Comparing your knowledge, processes, and business to that of your competitors. What you get is a comprehensive layout of where your brand stands within your industry on any metric. Are you leading the pack, among the industry average, or trailing behind a key competitor?
Here’s where it gets interesting. When you pick the right data to scrutinize to position yourself against the most relevant rival, it can be like rocket fuel for your brand strategy. Through competitive benchmarking, you can find the adjustments you might not have thought of and develop an innovative, focused strategy to drive for success. Now you can tailor your products, tweak your services, and fine-tune your market approach not just to compete, but to become the leader in your lane.
More than just metrics
Competitive benchmarking isn’t just about crunching and comparing numbers; it’s a strategic art form. What it really does is guide you toward crafting tactics that grab attention and build loyalty among your customers. By comparing yourself in the marketplace, you can find the strategies that work without going through time-consuming and expensive trial-and-error. This spotlights where you can shine the brightest in your competitive arena.
Three main categories of competitive benchmarking
In competitive benchmarking you have three main categories: performance, strategy, and process. Like picking the right tool for the job, the one you pick should align with what you’re looking to accomplish.
Think of this as the leaderboard. Performance benchmarking is all about where you rank in a given category. Some of the commonly used benchmarks here include revenue, customer satisfaction scores, brand recognition, or even social media buzz. This type of benchmarking tells you where you are in relation to competitors and helps plot the course not just to be competitive in the marketplace, but to surpass them.
Strategy benchmarking: crafting a winning game plan
If performance benchmarking examines how you’re doing, strategy benchmarking considers why you’re doing it. From business models to planning and execution, strategy benchmarking is all about examining how your contemporaries are approaching their markets and learning from what you find. By seeing how you measure up in strategy, you can pinpoint the moves that will make your brand win against competition.
Process benchmarking: perfecting operations
This one’s all about how you do what you do—the nuts and bolts. With process benchmarking, you’re diving into the mechanics of how things are done in your business compared to others in your industry. For example, you may analyze how leaders in your industry develop, market, and refine unique selling positions. You may consider what, exactly, Chick-fil-a does to make their drive-thru so effective. Here you gather insights to learn ways to streamline and improve your operations to elevate your performance.
Go even bigger with competitive benchmarking best practices and strategies
Now that you have the basics of competitive benchmarking, how do you apply them to catapult your brand ahead? In our best practice guide, we dive into what you need to know to avoid traps and find your way to the treasure, including the key to ensuring your benchmarking strategy will be truly effective. Take a look at our guide today and get the knowledge and insight you need to soar beyond your competition.
