Benchmarking: features of the tool and its types
In order to develop and maintain a position in the market, a business should regularly study its competitors and analyze their strategies. According to expert Chaslau Koniukh it will allow keeping abreast of changes and responding quickly to certain trends. Benchmarking is used to study the competitors, which includes various mechanisms for collecting and analyzing information.
Benchmarking takes data from sites that are similar in topic and focus, and then compares that information with each other. Koniukh points out that this tool reveals a number of important indicators, such as:
– promotion strategies that do not work for this market;
– content optimization mistakes;
– areas that are in need of improvement;
– promising areas.
Benchmarking is a comparative analysis, through which the company can really assess its own place in the market, compare its success with the success of competitors, to study the methods of development of the leaders. With the help of this tool, experts receive average indicators of the situation in a certain niche. Using the received data marketers can define the necessary level of performance, clearly see the dynamics and tendencies of the market. Besides, benchmarking gives a possibility to scrutinize competitors, their methods, strengths, and weaknesses. The goal is, first of all, to build your own strategy of development and scaling on the basis of the experience of market participants.
Benchmarking is divided into internal and external. The first type is an analysis of the performance of departments or branches. It is designed to increase productivity and identify problems in the company’s internal processes. Thanks to the tool it is possible to identify patterns of success of one division and errors in the activities of another, and on this basis to make recommendations to improve the work.
External benchmarking evaluates competitors by comparing the performance of different companies, not divisions. Such analysis takes time, but it provides a great deal of useful information. Examining competitors’ approaches allows you to set realistic goals and choose the best ways to achieve them.
Expert Chaslau Koniukh recommends starting benchmarking with set a goal that needs to be solved with the help of the tool. For example, you need to improve SEO promotion, strengthen the company’s position in the market, attract more visitors to the site. Next, they make a list of competitors, the analysis of which is planned to carry out. They are evaluated according to various indicators, among which – traffic, social coverage, consumer attitudes, and others. Moreover, a number of indicators are quite difficult to obtain, so a good solution is to study news from competitors, their reports on sales volumes, and other information.
One approach is also target audience surveys, which show people’s attitudes toward a particular brand. Whichever type of benchmarking you choose is sure to help improve your company’s situation, increase efficiency, and determine the position of the business in the marketplace.