Medical settings often collect benchmarking data about their patients, including assessing waiting times, the quality of care, recovery times and patient satisfaction. TechnologyĪ technology company may monitor the specifications of their competitors' products and compare them to their own, or measure their product life cycle against industry averages to ensure that they stay competitive. These figures could be used to boost performance by improving processes and systems and also as a tool to help improve motivation among the staff. They might also collect data about waiting times, call lengths, first contact resolution rating, occupancy and shrinkage. Here are some examples of ways companies can use benchmarking to achieve specific results: Call centerĪ call center might benchmark its customer satisfaction rating by asking customers to rate their service based on their experiences. Related: The 10 Steps of Benchmarking Accounting What are some examples of benchmarking?ĭifferent industries use benchmarking in a variety of ways. These associations collect and publish data from all their members, allowing them to identify industry-wide trends and enabling effective reviews of best practices. Some industries have trade bodies or consumer groups associated with them and these are an example of how collaborative benchmarking can work. Organizations usually look at one particular aspect of their business to establish performance metrics that allow them to measure their output against their own previous results, as well as seeing how they compare to their competitors. Larger businesses can look internally to obtain process benchmark data by comparing metrics from different branches of their operations or even different methods of completing the same process. By taking a more holistic look at competitor activity, you can get an accurate picture of the sector's landscape and how you fit into the wider market. The SWOT process of benchmarking against competitors has a broader scope and works by establishing a business's strengths, weaknesses, opportunities and threats. Likewise, companies can compare internal departments to determine best practices for the company as a whole. This allows them to compare results, establish best practices and identify areas in which they can improve their own processes. Best practice benchmarkingīusinesses examine the process of the companies that they aspire to be like in their industry, usually those at the cutting edge of their sector. Some of the most popular benchmarking methods include: Peer benchmarkingĬompanies look at their closest competitors and establish whether their products or services are in line with what else is being offered in the marketplace.
Externally, companies can compare themselves to their competitors in the marketplace. Internally, companies can compare teams and departments to determine which processes are generating the best results. How does benchmarking work?īenchmarking can occur both internally and externally. Benchmarking can also be used to collect data to inform long-term business strategies, including reviewing critical functions to increase efficiency and improve performance. There are many compelling reasons to include benchmarking as one of your essential business activities, primarily because it is an effective way to identify best practices in your sector.īenchmarking can help identify effective marketing strategies, inform product development and encourage new business ideas. What is benchmarking?īenchmarking is the process of comparing your company's results with those of others in your industry to get a better understanding of your position among your competitors. In this article, we explain what benchmarking is, with examples of benchmarking.
Understanding the different types of benchmarking can help you to use this tool more effectively. Effective benchmarking can be a vital part of long-term goal planning and can help identify areas for growth. Benchmarking your business by measuring it against competitors is an important tool for any company and is becoming increasingly popular as a way to understand your position in the marketplace.
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