Competitive Benchmarking Analysis has always proved to be a very effective business strategy to build a position in the market. It basically involves the process of evaluating a company’s performance against its competitor in the market. You can easily do a thorough research on the comparison between your company’s growth with that of your competitor’s. 

Competitive benchmarking analysis comes into play when you use predetermined metrics to compare between your company’s performance to that of your competitor’s. You can think of these metrics as certain business criteria and indicators, scores of which give a clear which area calls for improvement. Based on that you can devise a well-articulated plan, be it improving customer satisfaction, operational efficiency, or product quality. Making use of the plan, you can look for better resource allocation, better team management, and better investment strategies to overcome the gap in the performance of your company. This will eventually set your company apart from your competitors in the market. 

While you might get confused between the use of metrics and Key Performance Indicators(KPIs) in competitive benchmarking analysis, both differ slightly. Key Performance Indicators are a subset of metrics, so to say not all metrics are KPIs. You can very well get data points and measurements of various activities in your company from the metrics you choose for evaluation. Metrics will fetch you with quantifiable data, measuring the status of various processes in your company. It can be market share, customer satisfaction, product quality, employee productivity, operational efficiency, total revenue, website traffic, total regional sales, employee attendance rate, etc. 

In competitive benchmarking analysis, metrics can be useful when you are seeking a granular understanding of the various operations in your company. For example: You wish to track the daily production rate in your company, metrics measurement can come to your rescue. Apart from providing a broader insight into different areas of your business, metrics ensure a strong operational monitoring by providing you with raw data. 

Needless to say that HS Brands Asia serves you with one of the best competitive benchmarking services in India. Having worked with numerous clients and companies worldwide, HS Brands Asia has helped them reach the pinnacle of success with its strategy and consistent service. 

While there can be way too many Competitive Benchmarking Metrics to choose for tracking the performance of your business, the ones that I’ve selected below for you comes under the top 5 ones. Without any further ado, let’s explore of the five metrics one by one, as follows-

Many of the top competitive benchmarking services in India have considered market share as one of the best metrics to benchmark. It measures the percentage of total shares a company controls in the industry in comparison to its competitors in the market.

Not only will it give you ideas of where the improvement needs to be done, it’s also a clear indicator of your company’s relative success in capturing market’s demand. Higher the market share of your company, it will indicate a higher customer satisfaction, a stronger brand presence, and more effective sales in comparison to your competitors.

Your company’s increasing market share can very well be an indicator of successful strategies, referring to potential growth. If your company is capable of capturing a higher portion of the market, it will indicate a higher profitability. 

Industries where you will see that a few large players are dominating, your company’s market share will give you strong insights into its competitive positioning in the market.

Read Full Article: Top 5 Competitive Benchmarking Metrics for Business Success | HS Brands Asia