Benchmarking is the concept used to explain a improvement process in your brand, business or product from the analysis of what others are already doing (for example, the competition).
If you have an online store or , I recommend you deepen this practice, since it is essential to achieve a business with a continuous state of progress. Why is that important? Let’s find out.
What is benchmarking?
The definition of benchmarking originates from the English term benchmark, which means “reference”. So, benchmarking is the practice of reference the best in your areasee what they are doing, analyze it and take what serves for your own use or benefit.
It is often called the continuous improvement technique because it invites you to be in a constant process of searching for new forms or practices to implement. The key? Look at those who have already done it, understand their methods and transform them into your own based on an adaptation to your particular reality.
Is it worth applying benchmarking to my business?
Now that you know what benchmarking is, I imagine you are wondering if it is worth investing your time in. The answer is, without a doubt, yes. And I’ll explain why.
We are living in a very dynamic time, especially in the e-commerce. In this industry, constant changes occur, new features, channels and players emerge. So, if you are going to be involved in the world of electronic commerce, it is essential that you generate a friendship with the idea of constantly improving.
What is one of the keys to this process? That’s right, benchmarking. As we saw, this strategy allows you to look at companies, brands or people that you admire, that you like what they do, that they are your direct competition or that they are simply innovative.
This can serve as channel for infinite improvementsfor instance:
- Inspiration for the growth of your brand or your products.
- To improve internal processes of your company.
- To understand what is already working (and what isn’t) in your industry or market segment.
Analyzing what others have already done saves you a whole period of trial and error of your own.. In this way, you can apply directly to your business what you think may result in your particular case, in your context.
Benchmarking: steps to put it into practice
Beyond theory, it is important to follow certain steps so that the benchmarking process is productive and not simply remain in a place of admiration or desire for what others are doing.
For this, you have to be clear about the following benchmarking steps:
Step 1: Plan
In the first instance, you have to be clear about what aspect of your brand you want to improve. Decide what are going to be the themes that you are going to focus on in this analysis.
For example, it could be that you want to improve the product page of your ecommerce to have more sales (photographs, descriptions, etc.) or also understand what good practices should be applied in relation to customer service.
From this, if you still do not have them identified, look for who are the referents in those matters. Don’t be left with only one option. Remember that there are no ideals and that you may not be able to apply everything to your own reality. So, I recommend having at least three referents per area.
Do not forget that they do not necessarily have to be direct competition or be in your same industry. The important thing is that they help you to see how they handle certain issues.
Step 2: Analyze the information
Once you have your references identified, it is time to sit down and gather all the information that may be useful to you about those brands or people.
Nowadays we are lucky that the digital world allows access to innumerable sources of information online: either directly (from a web page and social networks) or indirectly (through ).
Once you have all the information collected, it is time to carry out a deep analysis related to your business. It is important that you can identify what things would serve as improvements or good practices, what processes you could transfer to your reality. And if necessary, how would you have to adapt it to fit your current scenario.
Step 3: Define your enhancements
From the analysis of the previous step, it is time to decide on which points you are going to be working on to apply in your business.
It’s key put together an action plan with tasks, steps and dates so that ideas do not remain in the air or simply wishes for improvements.
How to apply benchmarking in ecommerce
In the case of the e-commerce industry, there are many aspects that could be identified to put benchmarking into practice.
the online store
When creating or improving your online store, you can refer to those brands that inspire you:
- What attracts you to those stores?
- How is your design?
- How are your messages?
- Do you display your products in any special way?
Remember that they do not necessarily have to be competition from your same field, but brands that you believe are managing to build a successful path.
The digital marketing strategy
when you arm your you can apply benchmarking to see which campaigns are having success with your leading brands.
- What kind of advertising do they do?
- On what channels?
- What action do they invite in their ads?
- What promotions do you offer?
- Do you give discounts?
- How are they handled on special dates?
- Do you send newsletters?
- In which social networks are they present?
- What kind of content do they post?
Customer service
If you want to improve your post-sale service, you can make some test purchases and evaluate what you find.
- How is the customer service once the purchase is finished?
- How is the logistics and delivery process?
- Is there something in the packaging and the way of presenting the product that catches your attention?
What no one tells you about benchmarking
As a closing, I want to leave you with a reflection: remember that benchmarking it’s not about copying what others are doing.
Whether you are looking to improve your product development, customer service or marketing strategies, for it to be an effective strategy it is important that you this analysis is only a starting point: a reference that you can take and adapt to your own reality. That is the key to true innovation.
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