1-Define benchmarking objectives
Before you start analyzing your competitors, it's important to define what you want to achieve with benchmarking. Do you want to improve the quality of your products or services? Reduce costs? Improve customer service? Clarifying your objectives will help you focus your analysis on the aspects that are relevant to your business.
2-Select the right competitors
It is important to select competitors that are relevant to your business. Analyze companies in the same sector and size, that have similar processes or products or services to yours. It is not about copying the competition, but about learning from their strengths and weaknesses.
3-Analyze the processes and strategies of the competition
Once you have selected your competitors, it is time to analyze their processes and strategies. Find information about their products or services, their cost structure, their marketing strategy, their customer service, among other aspects relevant to your business. You can obtain this information through social media analysis, website, product and service analysis, online review monitoring, and market research.
4-Identify the strengths and weaknesses of the competition
After analyzing your competitors from all the perspectives that interest you, it is important to classify their strengths and weaknesses. From this analysis, you can identify opportunities for improvement for your business. For example, if your competitors have a successful marketing strategy, you could learn from their techniques to improve your own strategy.
5-Implement the identified improvements
Once you have identified the opportunities for improvement, it is important to implement the improvements in your business. To do this, you can adapt the competition's strategies to your own company, improving your processes, products or services. Remember that benchmarking is not a copy of the competition, but a tool to improve your business.
Example of benchmarking application in an e-commerce
Identify the process to improve: In this case, the company wants to kuwait whatsapp number data improve its conversion rate at the checkout of its online store.
Identify the leading company: To improve the conversion rate, the ecommerce company could identify a market-leading company, such as Amazon, that has a high conversion rate at checkout.
Collect and analyze data: The ecommerce company could research and gather information about Amazon’s checkout process, such as its page layout, checkout process, shipping options, etc. They would then compare that information to their own checkout process to identify areas where they could improve.
Implement improvements: The ecommerce company could implement improvements to its checkout process, based on what it learned from analyzing data and comparing it to the market leader. This could be improvements to the page design, reducing the number of steps in the checkout process, or adding more shipping options.
Monitor and maintain: After implementing improvements, the ecommerce company should monitor and measure the results of its new checkout process and compare it to previous results. This will help identify any issues and ensure that improvements are maintained over time.
Conclusion
Benchmarking can be a very powerful tool to improve your company's processes. By following these five steps, you will be able to identify areas for improvement, compare yourself with reference companies, collect information, analyze and compare results, and take action to improve. Keep in mind that what is not measured cannot be improved, through this tool you will be able to scale your company and improve team performance.
Additionally, by using a CRM like Escala you will be able to monitor the performance of your strategies in more detail. Join the group
