Benchmarking is an analytical technique that involves studying the competitive practices of other companies in one’s industry.
In other words, it's a method of observing the performance of other companies, whether competitors or not, as well as their product and service offerings, or their communications and marketing strategy.
The aim of benchmarking is to optimize sales and marketing strategy, so as to offer customers a better experience than that offered by other market leaders.
Benchmarking is a comparative analysis of the competition that goes far beyond simple competitive intelligence.
In fact, benchmarking can draw on other methods from different business sectors, as well as from a wide range of management and organizational processes, to obtain valuable data. Benchmarking can thus have an impact not only on marketing organization but also on company management.
Generally speaking, and like any other marketing strategy, benchmarking aims to improve a brand's competitiveness and productivity.
There are different types of benchmarking:
- Internal benchmark: This compares different departments within the same company.
- Competitive benchmark: This involves comparisons with direct competitors.
- Functional benchmark: This consists of analyzing how different companies operate, even if they aren’t necessarily competitors or present in the same market. Functional benchmarking doesn’t aim to stand out from the competition, but rather to improve a company's efficiency by drawing inspiration from the best players in its environment, whether in terms of marketing, management, or administration.
- Horizontal benchmarking: This seeks out processes similar to those already applied within the company, whatever the sector, in order to establish comparisons.
All these different processes offer numerous advantages. Benchmarking is an indispensable lever for improving performance and staying competitive.
This constant monitoring is used to avoid being overtaken by competitors and to keep abreast of all the latest developments. Benchmarking is an essential process for ensuring a company's long-term growth and helping it to progress in its market.
