![]() ![]() Unlike competitor analysis, where a brand tries to gain the competitive edge by jumping into areas missed - new features, countries to target, etc., competitive benchmarking involves the gathering of insights to show how their processes work, compared to yours. How do your competitors’ processes and operations function? You’re limiting your success, if you don’t go outside your business/industry, and learn from top performers. The advantages of internal benchmarking are that you have access to all the data you need, and it’s a quicker process. Processes that can be improved, such as converting leads to customers, onboarding new team members, etc. or during different situations- during a PR crisis, product launch, event - and find the areas that are weakest. Internal benchmarkingĬan an internal process be more efficient?Ĭollect data on your performance at different times - days, week, months, etc. Analyze the data collected and implement changes to improve your processes, products, operations.Compare your competitors’ processes with yours. ![]() Identify where other brands are performing better than you, and how.Grabbing a bigger portion of your market. It’s all about improving how your company works. If brand X produces its product in 30 minutes, one engineer, and also sells for $25, this benchmark indicates that you need to look at ways to speed up your production line. You can only answer this question accurately, if you have data from other companies producing the same product as you. Benchmarking is the how.įor instance, it takes one hour to produce your product, one engineer, and sells at a cost of $25. The data collected should then be compared to an industry standard - a benchmark.īenchmarks are the what. Benchmarking basicsīenchmarking is a way to measure the performance of your company’s products, services, processes, operations. Make your goals unrealistic, and you’re going to fail. Timely - when do you intend to reach your goal?.Relevant - do you have the resources to achieve your goal?.Measurable - how will you track and analyze your progress?. ![]() Achievable - are your goals challenging, yet possible?.Specific - real numbers, real deadlines - who, what, where, why?.SMART goals - Specific, Measurable, Achievable, Relevant, Timely. But, as with your business goals, they must be achievable.ĭon’t forget, they must be SMART - Specific, Measurable, Achievable, Relevant, Timely. They’re about improved performance of your company processes. No doubt you’ve already determined your business goals, but benchmarking goals are different. Competitive analysisīy comparing your performance with that of your competitors - what they’re doing right and what they’re doing wrong - you’ll identify areas in your business that can be improved. Benchmarking is an ongoing process, with performance monitoring playing a crucial part. Look at current benchmark metrics in order to identify industry standards that you should strive to meet or surpass. Increase customer satisfaction and loyalty.Improve efficiency and reduce operating costs.Measure how effective your past performance is.Improve your processes, operations, procedures. ![]() Implementing a social media management tool for scheduling your social messaging. That could mean updating a product feature to meet or beat a competitor’s product. Studying best-in-class companies, identifying why their processes work so well, will enable continuous improvement within your business. You’ll save money, while increasing revenue. Implementing a benchmarking process will help your business get stronger. Simply stated, benchmarks are the “what”, and benchmarking is the “how.” Why is benchmarking important? The most common metrics for benchmarking include cost per unit, time to produce, product/service quality, effectiveness, time to market, customer satisfaction and loyalty, brand recognition.īenchmarking against leading companies will gather insights to help you understand how your brand compares, even if they’re in a different industry, or have a different audience.īenchmarking is a process for obtaining a measure - a benchmark. Then, pit them against other companies and industry standards.įirst up… what is performance benchmarking? Benchmarking definitionīrand benchmarking is a process of measuring the performance of a company’s products, services, operations, processes against other companies - recognized as best-in-class - or the wider marketplace. From your internal messaging tool to your product’s time to market. But, you’ll be wasting your time if you only benchmark against yourself.įirst up, you need to determine the processes in your company that keep it running smoothly. Performance benchmarking is a powerful tool, if you’re looking for continuous improvements in your business processes. ![]()
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