Benchmarking Services
Benchmarking Services

The Benefits of Benchmarking Services in Today’s Competitive Business Environment

3 minutes, 56 seconds Read

When it comes to understanding the competitors in your industry and the best practices that are being adopted, there is no better tool than benchmarking. Benchmarking allows companies to study their industry and business markets uniquely. The insights provided through key performance metrics give a company insight into its performance versus that of its competitors. However, developing the tools and hiring the manpower to conduct benchmarking research is costly and time-consuming. A primary benefit of benchmarking services is the high-quality tools and expertise that companies get access to. It allows companies to conduct effective industry and competitor research as and when the need arises. After all, benchmark research and analysis is a study companies do not need to conduct every day, so having a service provider on a retainer creates flexibility and reduced costs. 

Benchmarking Metrics 

Here are a few examples of the insights Benchmarking Services can provide to a company: 

Finance: How much profit is a firm generating in comparison to its competitors? Companies can learn the answer to this question through the power of benchmarking. Companies can assess metrics such as net profit margin, return on assets, and more. 

Marketing: Benchmarking is capable of analyzing a company’s marketing campaigns and strategies through KPIs such as return on investment, customer acquisition cost, and cost per lead. 

Sales: Has a sales team been performing up to the required standard? Are the results of the sales team acceptable in the current market conditions? Are competitors performing better? There are hundreds of sales benchmarks available for companies looking to find pain points and optimize workflows. 

 Types of Benchmarking 

Benchmarking is not only about comparing a company’s performance to its competitors. Companies can also conduct internal benchmarking, which compares the performance of a company’s internal departments. When a company compares its performance against the performance of its competitors, it is known as external benchmarking. Here are a few examples of internal and external benchmarking services that companies can avail of. 

Process Benchmarking: A common feature of internal benchmarking is process benchmarking. Process benchmarking helps a company make its processes more efficient and cost-effective. However, process benchmarking can also be conducted externally, giving a company insight into the processes of its competitors. Companies can use external process benchmarking to study or implement new strategies.

Performance Benchmarking: This is usually a competitor analysis done based on the departments and metrics listed in the previous section (Benchmarking metrics). Obtaining sufficient competitor analysis can be difficult, giving companies a strong reason to access the database and analytics provided by benchmark service providers. 

Strategic Benchmarking: What strategies are your competitors implementing? Is your company strategy and direction heading in the right direction? Strategic benchmarking can help a company answer these questions and adopt more efficient strategies if necessary. 

Industry Leader Benchmarking: Companies are presented with two options, they can use benchmarking either to analyze the performance of companies that are of a similar size, or they can use benchmarking to analyze the performance and strategies of industry leaders. Analyzing industry leaders provides companies the opportunities to learn and adopt the best industry practices. 

Benefits of Benchmarking

There are many, many benefits that benchmarking offers a company. Benchmarking can help a company better understand the performance and strategies of competitors in their industry. It can also help companies improve the internal processes that are inhibiting results. As we have seen, benchmarking helps a company improve and assess its performance and processes across the board. Some examples of this are improving its product line, marketing campaigns, sales pitches, costs, operations, and more. 

Companies can use benchmarking and benchmarking services to better understand the trends that are driving their industry. It allows them to predict future trends or take advantage of potential opportunities that might be on the horizon. Not only that, benchmarking helps a company understand whether its performance is aligned with its goals by identifying pain points and offering new strategies and approaches to drive performance. There are numerous benefits of benchmarking and its ability to overhaul a company’s performance and strategy is one of the reasons it is such a favoured form of market research.


Research done by The Global Benchmarking Network indicates that amongst business strategy tools, benchmarking is one of the most recognized and utilized. However, the data, expertise, and software tools required for conducting meaningful and insightful benchmarking are not easy to acquire. Benchmarking services provide all the benefits of adept benchmarking practices to businesses at reduced costs, allowing for an optimized benchmarking process. Companies can also find flexibility by outsourcing their benchmarking needs to a service provider since there is room to create flexible contract terms and requirements that best serve the company’s benchmarking needs and budget. 

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