Benchmarking is a strategy used by companies for many years. As it is a useful tool, it continues to be current and very successful! Find out what benchmarking is and what benefits this tool can bring to your business.
We all want our companies and brands to be succeed, right? Our company wins, we win. Our company loses, we lose.
Sometimes we get too involved in the company’s processes and even then it’s not enough. Maybe because making business decisions is much more complex than choosing between wearing the plain shirt or the striped shirt for the midday meeting.
As making business decisions is complex, we must use all the tools that can help us. And as we know, the right decision is a data-driven decision.
Benchmarking is the comparison of a service, product, or process between different companies or company branches. It aims to improve or structurally change a product, service or company process with a view to continuous improvement and business success. It also helps companies to define their competitive advantage.
This study must be continuous or at least have a periodicity defined by the company so that it is always up to date.
There are several types of benchmarking that can be studied. For example, benchmarking with competitors, with other branches of the same company, with companies that are not competitors but thrive in the market.
Benefits of Benchmarking
Benchmarking has several advantages for companies, including:
– It helps companies to understand how they position themselves, through comparison with other market players. Improvement points are found and also your competitive advantage;
– Definition of business strategies. With the results of such a study, the company has tools to understand the changes it should make, what practices it should adopt in relation to a given product, service or process and what priorities it should consider;
– Monitoring of market trends. The market is constantly changing so we shouldn’t focus on current success, but work to keep up with market needs;
– Increased customer satisfaction. By resolving gaps in the business, by perceiving and communicating the differentiating factor and responding to market needs, the company will be satisfying the needs of customers and, by doing so, increasing their satisfaction. Satisfied customers leads to increased sales and loyalty.
PSE specializes in data analysis, since 1994 we have been carrying out benchmarking studies.