Learn what Benchmarking is and its importance in Digital Marketing

Understand what benchmarking is and start using this strategy, which involves getting to know your competitors better, in favor of your business

Do you know what benchmarking is? The strategy, which consists of strategically analyzing the best practices used by other companies in the same sector as yours, can be extremely efficient in bringing you more insights into your business. 

In addition, when done well, benchmarking helps you make better decisions and avoid mistakes that may have already been “tested” by your competitors. Therefore, it can be very important to give more efficiency to your brand. 

Furthermore, it is worth remembering that benchmarking is interesting for companies of all segments and sizes, after all, there will always be competitors to be monitored, analyzed – and, who knows, overcome.

Follow and better understand what benchmarking is, its importance for the digital marketing strategy, and also see good tips for benchmarking.

What is benchmarking?

Benchmarking is a term that comes from the English word “benchmark”. In Portuguese, it can be translated as “reference”. 

Therefore, in the business world, benchmarking is understood as a practice that helps companies compare their brand with others and seek references from companies operating in the same sector. 

In practice, benchmarking is a research process. It helps to analyze the performance of services and products in relation to competitors. Through this strategy, you get to know better the processes used by other companies and, thus, have input to improve the way your company works . 

Why is benchmarking so important for companies?

Well, now that you know what benchmarking is, it’s time to understand why it is so important to your business. Or rather, the reasons.

First, it is worth mentioning that the current world is extremely competitive. Thus, understanding what your competitors are doing and, from then on, thinking about offering better solutions, becomes almost essential.

As much as other brands in your area of ​​expertise offer excellent service, there is certainly room for you to bring a differential to customers. Perhaps a superior quality product, a concern with a different social cause, a more agile service, other communication channels to relate to the public, among others.

Benchmarking is important for you to understand which market position your company is in. 

Are you behind or ahead of your main competitors? What decisions can you make to further improve your results, attract new customers and retain those who already know your brand? 

In addition, benchmarking is also a powerful tool to help you:

  • Innovate;
  • Follow market trends;
  • Identify your main strengths and weaknesses;
  • Set realistic goals;
  • Recognize your main differentiators.

How benchmarking can ally with Digital Marketing

In addition to knowing what benchmarking is, it is important to know how to use it in your company’s day-to-day activities. Therefore, it is important to point out that it can be a powerful ally in your digital marketing strategy.

For this, it is necessary to remember, first, that digital marketing involves highly dynamic practices and actions. 

Thus, a good way to apply benchmarking in your digital marketing is to analyze, monitor and identify the strengths and weaknesses of your competitors. From there, you can plan actions that can be better and more effective for your business.

However, to learn more about how to get started with your strategy, there is a step-by-step guide you can follow. And we detail it below. 

Step by step to do a benchmarking

1. Analyze your own company

Now that you know what benchmarking is and how to apply this strategy to your business, it’s time to get to know your own brand better. Thus, find the points that need to be improved in your business and also know how to point out what your differentials and strengths are.

2. Select the competitors you will monitor

Ideally, select one to three companies that you believe are interesting for you to do your benchmarking work. Choose those that you admire and believe can bring good inspiration to your brand. 

It is worth remembering that you can even benchmark with companies from other segments, as this can bring insights that go beyond your market.  

3. Choose what you will analyze 

There is no way to benchmark without defining what you will evaluate in other companies. So, make a table to compare specific aspects of each company based on topics that you think are important for your business.

When it comes to digital marketing, for example, some topics you can evaluate are: 

  • Presence, engagement and authority in social networks ;
  • Quality of distributed content;
  • Pages that are well indexed in search engines, which appear in the first results of Google according to the keywords searched;
  • Website loading speed;
  • Website design, blog, social networks, application (if the company has it);
  • Type of language used in the materials;
  • Meta tags used, among others. 

To do this analysis well, use good tools such as Klout, Semrush, the Google Insight page itself, Alexa, Buzzsumo, LikeAnalyzer, SocialMention, etc. Some are free and some are paid. It’s worth researching to decide which one works best for your business.

4. Analyze the collected results and define which improvements to apply

Now is the time to gather all the data collected and check the results. Check out what makes sense for your business, make comparisons, get inspired to develop relevant actions for your brand according to the results of your analysis. 

For this, a good tip is to make a report with very clear information. Thus, it will be possible to identify where the growth opportunities are and the improvements that you can make in your business. Also, take the opportunity to create preventive actions against possible threats that may appear in your area of ​​activity.

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