{"id":84771,"date":"2021-07-26T11:14:40","date_gmt":"2021-07-26T11:14:40","guid":{"rendered":"https:\/\/www.similarweb.com\/corp\/?p=84771"},"modified":"2025-08-05T07:53:28","modified_gmt":"2025-08-05T07:53:28","slug":"benchmarking-for-success","status":"publish","type":"post","link":"https:\/\/www.similarweb.com\/blog\/research\/business-benchmarking\/benchmarking-for-success\/","title":{"rendered":"How to Do Benchmarking: Your Blueprint for Growth"},"content":{"rendered":"

Most companies know the industry leaders<\/a> in their field. But, what about who\u2019s losing steam or gaining traction? More importantly, why should companies want<\/i> to know this?<\/p>\n

In short, this information is what successful benchmarking<\/a> is all about.<\/p>\n

Knowing how to do benchmarking can be the difference between staying ahead of the curve and lagging behind.<\/p>\n

Do it right, and get access to crucial intel that\u2019ll help you stay afloat. Without it, you\u2019ll start to feel that sinking feeling as those around you adapt to changes in the market while you struggle to know what\u2019s happening, and why.<\/p>\n

Read on to learn more about how to do benchmarking right.<\/p>\n

\"benchmarking<\/p>\n

Different types of business benchmarking<\/h2>\n

Before we show you how to benchmark, you\u2019ll need to consider which type of benchmarking<\/a> is right for you. While the core processes are much-of-a-muchness, the purpose and datasets used for each differ.<\/p>\n

\"8<\/p>\n

    \n
  1. Competitive <\/b>benchmarking<\/b><\/a> looks at how your performance compares to the competition or industry standards; and shows how you stack up.<\/li>\n
  2. Strategic benchmarking<\/b><\/a> focuses on industry leaders and their strategies. When you know how to benchmark, you can uncover what tactics guide the big players in your market. If you want to find out how a rival is driving web traffic<\/a> to their site, this is a great way to see this.<\/li>\n
  3. Performance benchmarking<\/b><\/a> looks at key performance metrics to compare profitability. It can help you define the right targets for your business.<\/li>\n
  4. Digital benchmarking<\/b><\/a> refers to any type of benchmarking conducted using digital metrics, which, in reality, is most types of benchmarking today.<\/li>\n
  5. Practice and process benchmarking <\/b>focus more on current processes. This would be crucial for an HR or employee experience team to ensure they are attracting the best talent, retaining employees, and creating the most productive working environment.<\/li>\n
  6. Internal benchmarking<\/b><\/a> is a method to define targets and goals for your organization and internal processes and workflows. Internal benchmarking is when you look within and optimize systems and processes to scale and grow. This is most relevant for larger organizations with enough employees to benchmark internally.<\/li>\n
  7. External benchmarking<\/b><\/a> encompasses all benchmarking where you look at data from external companies and industries.<\/li>\n
  8. Social benchmarking<\/b> includes benchmarking social metrics<\/a> and comparing them to other companies.<\/li>\n<\/ol>\n

    As I mentioned at the start, the first step in learning how to do benchmarking is to look at what you want to get out of it. Then, you can choose the right datasets to help you achieve those goals.<\/p>\n

    Who can benefit from successful benchmarking?<\/h2>\n

    Market researchers and corporate strategy teams benefit from benchmarking by looking at the market and comparing it to industry averages<\/a>.<\/p>\n

    Business intelligence and analytics teams monitor and track digital performance, and competitor insights<\/a>, centralize data sources and make relevant decisions based on industry standards and benchmarks.<\/p>\n

    And, of course, customer satisfaction and audience analysis<\/a> teams can use benchmarking to better understand customer behavior, and audience consumption habits, and to develop new ways to bring in new customers.<\/p>\n

    Doing benchmarking regularly helps you to:<\/p>\n

      \n
    1. Identify trends in your industry<\/b> \u2013 By using traffic and user engagement data, you\u2019ll know what areas to focus on to achieve your goals.<\/li>\n
    2. Understand your position <\/b>\u2013 Identify your weakness, strengths, and threats that could come your way.<\/li>\n
    3. Understand growth potential <\/b>\u2013 You can see where you stand and where performance gaps and opportunities exist to help you meet your goals. This will help you find your competitive advantage.<\/li>\n<\/ol>\n

      How to do benchmarking – in four easy steps<\/h2>\n

      As a company that knows a thing or two about benchmarking, we can say with confidence that any business can benefit from learning how to do benchmarking right.<\/p>\n

      Depending on the type of benchmarking you choose, there\u2019ll be slightly different ways of working for each. In this section, I\u2019ve outlined the four core benchmarking steps you can apply to almost any scenario.<\/p>\n

      I promise, once you\u2019ve learned how to do benchmarking, and start to see results, you\u2019ll quickly become hooked.<\/p>\n

      1. Define your goals<\/h3>\n

      One of the biggest benefits of benchmarking<\/a> is that the process can help you reach your goals. This is why the first step of benchmarking is to clearly outline your goals. Make sure these goals are specific, and where possible, contain a numerical attribute. My default method for goal setting is the SMART<\/a> approach, but feel free to go your own way!<\/p>\n

      So, establish what your goals are, write them down, and be sure to revisit them<\/b> throughout the process.<\/p>\n

      2. Determine what metrics matter<\/h3>\n

      There are a wide range of digital engagement metrics<\/a>, the most popular tend to be: bounce rate<\/a>, website stickiness<\/a> (unique visitors<\/a>\/total visits<\/a>), marketing channels<\/a>, device split, session duration<\/a>, and pages per visit.<\/p>\n

      These \u200bmetrics give you valuable information that helps you identify opportunities, and track real-time data for your market.<\/p>\n

      Consider mobile app benchmarks too, as most markets are being impacted by apps in one way or another.<\/p>\n

      Key mobile benchmarks you need to track include:<\/p>\n