Benchmark analysis, a benchmark for any successful marketing plan. Those involved in online promotion (but not only) know that this junction cannot be ignored. The reason is simple: we are talking about a fundamental technique for measuring, evaluating, getting clear data.
A path of data-driven marketing and CRO, conversion rate optimization, must be based on clear numbers. Metrics that can only be generated through comprehensive analytical work. And able to compare with benchmarks that you can take as a reference for a parallel.
Comparison with competitors, competitor analysis and measured comparison with the world around you: these are not paranoid behaviors or attempts to copy those who have done better than you.
This is the basis for a fundamental step in web marketing: benchmark analysis. To wit. What are we talking about? Is this work to be done only toward competitors, or is there internal benchmarking as well? Let’s tackle this very important topic together.
What is benchmark analysis, a definition
It is an empirical evaluation strategy that allows you to assess a measure against an upstream defined standard. Thanks to this technical work you monitor results obtained in a given field through a comparison that takes place thanks to a set of well-defined metrics.
At this point it is fair to clarify: benchmark is the indicator used to define the evaluation between the basic and external metrics with which you want a comparison to create a juxtaposition.
And if the first term indicates the criterion of relevance, with the concept of benchmarking (translatable from English with the terms comparative analysis) we refer to the operation that allows you to compare, over time, your numbers with those of a reference that you propose as a point of relationship.
To read: tools for measuring site speed
When should you address this step?
One of the most important aspects to clarify before delving into the operational talk about benchmarking in the best possible way: this is not a one-time activity, i.e., a one-time within a marketing process for a brand. It would be completely useless, without any meaning or value.
The work to be done is systematic and systemic, to be activated at a set cadence as needed and with continuity. So it has to be a continuous path: only then is it possible to understand how much difference there is from the number being examined and how the refinement work is progressing.
What benchmark analysis consists of: the steps
The basis is this: benchmark means using methodologies for a structured comparison of referrals to find out what the differences are with the best (internal and external) benchmarks. The purpose of it all?
To understand how to improve and assess whether progress has been made. From this starting point, we can identify a number of essential points to make a good benchmarking activity.
Identify and study a point of analysis
You need to isolate one element, one criterion. There are multiple circuits that can look at internal or external factors. But you have to isolate one element. Benchmarking can be applied to any process: before you undertake the comparison with other conditions you need to understand what to improve.
Study a point of comparison
It can be a group of competitors, an industry or relevant metrics. In any case, after figuring out what you need to improve you need another step, the next step: figuring out what the reference universe is. So that you can isolate a set of standards to use as a comparison.
Aim toward an ideal performance
The comparison study has a goal: to identify benchmarks, that is, KPIs (key performance indicators) for comparison. Only by addressing this the sector or area you want to improve can you identify points that will allow you to establish stakes necessary for your continuous improvement. According to Wikipedia, KPIs should be objective, understandable, inexpensive, and representative of a process.
Analyze the values and improve the necessary
The stage where you put the data obtained to use. First, however, the numbers must be analyzed and interpreted. In these cases, if you work in web marketing, it can be useful to use Google Data Studio.
In fact, this tool allows you to activate a dashboard for monitoring data that is always up-to-date and easy to check over time. Based on these numbers, filters are activated that you can adjust to trigger clear comparisons. And arrive at useful conclusions about how, where and why to operate.
Modify in relation to the results obtained
Final step, now you have to modify the analysis point based on what you observed. Then start over and over again. In search of an idealistic perfection that you must try to achieve.
Of course, this is just one possible solution, a list of basic activities to best deal with an ever-changing dynamic. And comes with new challenges precisely because benchmarking is a reality to be used in different situations. For example? What are the various benchmark analyses to initiate.
Types of analysis for your benchmarking
As anticipated, there is no single type of activity for benchmarking because every element of a brand, company, or professional activity can be improved. You don’t have to look at all solutions, you don’t necessarily need to do SWOT analysis and continuous juxtaposition.
Internal benchmarking activities
This is a solution-one that keeps you within your personal boundaries-that compares parameters that are part of your own reality, and here you find the respective advantages but also disadvantages. In fact, internal benchmarking is simple and inexpensive but very limited.
If the best benchmarks for comparison are external to the company you can never improve beyond what is your optimum. Of course, you should be able to certify that for that principle you have the absolute best data. But as you can well understand it is difficult to aim that high.
Competitive or external benchmark
Here is the exact opposite of the previous point. This benchmark analysis allows you to compare your work with that of specific competitors, identified through skimming processes.
That takes place at an earlier stage. You have to identify from the best companies, or virtuous examples, the ideal benchmarks. To then reach them and exceed them. No shadow of a doubt, you have an underlying problem to deal with: it is not easy to achieve the desired result because it is not easy to retrieve data.
Functional benchmark analysis
Similar to the previous one: you analyze the values of competitors, even different companies that have great results in similar industries to yours. So you focus only on that area so that you get more satisfaction in strategic terms. Compared to the previous conditions, though, there is a need for commitment.
Global benchmarking analysis.
The most difficult combination. You create parallels between different companies, even very distant ones. In this case you benchmark only the best businesses, the big industry players. You aim very high, and if you can get a fruitful comparison, the results are obvious. But the risk of failure is high.