Whether it is a business or an ecommerce store, competition is at its peak. There are many brands and if you want your brand to be exceptional then it is necessary to beat your competitors. If you want your business to be at the top then Competitor analysis and benchmarking the successful competitors is the way to go.
Millions of online businesses are available and it is hard for a customer to select among them. Therefore, a brand must outperform all its competitors so that it is not only recognizable but also well-reputed for its values and highly efficient customer service.
In today’s cutthroat market, competitor benchmarking is the only way you can maintain a line of sight across the competitors. It provides you with not only long-term strategies to stay ahead of others but also improve your brand’s reputation in the industry.
So let’s not waste more time and delve into this article where you will know everything related to competitors’ benchmarking and its use in your business to win the market.
What Does Competitor Benchmarking Do?
Comparing your brand’s performance to that of other rivals in the same niche is known as competitor benchmarking. This gives you the information that indicates if you are ahead of or behind your rivals. It can be done by tracking your competitors’ sales, product positioning and USPs.
With a good comparison, a brand can identify its competitor’s strengths and weaknesses and use them for its benefit. Benchmarking the successful competitors involves the comparison of the businesses, ROI, products and sales with your brand.
Why To Use Competitor Benchmarking?
Being a new strategy to use in businesses, competitor analysis might need to be clarified for you. Therefore, we have listed some of the main reasons why should you use competitor benchmarking in your brand or business model:
Getting A Competitive Edge
Knowing your brand’s strengths and weaknesses earlier would help the brand to improve and serve in a better manner. Comparison of your brand with the successful competitors will give you an idea of where you stand in the marketplace and where your business falls short of the customer’s expectations.
Enhancement In Product Offering
You can compare your brand products with that of the competitor and evaluate their product offering. This will help you to market the product in such a way that it not only suits the current trend but also provides value to the customers.
Benchmarking a successful competitor can also help to form new marketing strategies, pricing models and innovation that help the brand stand out from the others. It will also give you an idea of the customer expectations so that you can be ahead of them.
Fills The Room For Improvement
If you have just made a brand and you don’t know how it will perform, then competitor benchmarking is the thing to do. It will provide you with your potential competitor’s performance and their strengths which will help you build a better brand model.
The profit margins, revenue and conversion rates can also be compared with your competitors. This will help you shape the brand in such a way that uses the competitors’ weaknesses and converts them into their strengths which will ultimately set them ahead of their competitors.
Top 3 Metrics To Track In Competitor Benchmarking
Keeping track of important metrics of your competitors would help you elevate your business and boost sales. Following are some of the key metrics you should be tracking in your competitor:
1. Product Or Service Quality
If you are doing the best brand marketing but your product or service quality is low, then it would be hard for your brand to stand longer in the market. That is why benchmarking your products and services with those of your competitors.
Competitor benchmarking provides you with information on whether your brand is good enough to stand among the other competitors or not. You can compare product features, functionalities, reliability and durability with the competitor products and evaluate which one is the best.
2. Service Execution And Cost-Effectiveness
If your brand provides good quality products but the service is delayed compared to that of the competitor, then it is highly likely that they will be on the upper hand. Therefore you should track your competitor’s supply chain, their lead times and the customer support to shape your brand in a better manner.
Factors like delivery time, service execution and supplier lead are important to compare with your competitor. Your brand should exceed the benchmark or at least meet them. Also, ensuring the quality of all this is important so that you can satisfy the customer.
3. Growth Rate And Customer Feedback
The ultimate goal of a brand or service should be to satisfy the customer. Therefore, it is better to track the customer service of your competitors and know what they are offering to the customers. This way you can make your customer service more satisfactory and meaningful.
Additionally, the growth rate of a brand is an important statistic and must be evaluated. You should benchmark your brand’s growth rate with that of the competitors and compare if you are going well or behind them.
Conclusion
Competitor benchmarking has made it easy for brands or businesses to evaluate their performance among thousands of competitors. You can now track your competitor’s growth, ROI, their product quality and customer feedback to identify their strengths and weaknesses. This will help you shape a brand that is sustainable and meets the customer’s expectations.
