Benchmarking is the process of measuring a business’s performance against competitors and industry standards.
Companies benchmark to analyze their success and get a better understanding of how they are performing relative to their competition.
Why is benchmarking important?
Benchmarks provide valuable insight to decision makers in a company. Marketers who know how their marketing campaigns stack up against their competitors’, can use this competitive analysis to differentiate their offers.
With established benchmarks, employees of a company can more thoroughly evaluate the success of their company. They can see where improvements can be made and what improvements should be made.
This process gives businesses the opportunity to optimize their strengths and exploit their competitors’ weaknesses.
In a Sentence
Jack used competitive benchmarks to prove his department's marketing success to stakeholders.