In today's digital marketing world, marketers tend to find themselves overwhelmed with a number of important metrics that need to be monitored and optimized. In addition to planning marketing budgets and campaigns, advertisers need to maintain an overview of how these measures affect sales and ROI. Therefore, competitive intelligence often fades into the background nowadays.
This inward-looking view of their own performance, goals and metrics is obviously important, however marketing managers should keep in mind the overall picture. Especially since companies and markets are now more than ever subject to a rapid change of products and competitors.
The ability of a company to generate competitive advantages has become prerequisite for survival, since a management decision can only be as good as the information it is based upon. Benchmarking in particular has proven as a solid method for reviewing performances and using resources more efficiently.
In this blog post we discuss the advantages of benchmarking in marketing and show 4 examples of areas that can be influenced positively.
ADVANTAGES OF BENCHMARKING
Benchmarking reveals best practices that companies can use to challenge their own methods. The upward comparison allows marketers to align their own actions with the best practices in the industry.
The success of competitors can provide important input for your company and help to find new creative approaches. At the same time, marketers can also learn from mistakes of other companies and thus reduce waste of their own resources. Knowing which practices work for the average advertiser helps companies to optimize their own marketing measures and to derive more benefit from them.
Here are four fields that can be positively influenced by benchmarking.
Effective advertising measures are essential for the success of a brand. The major marketing players publish an annual report in which they provide information on their marketing costs, turnover and profitability. In this report, marketers can find out what the big players in the industry spend on their advertising campaigns and what results they achieve with it. By mapping advertising spend and measures to sales volumes, marketing managers can compare the performance of their own advertising activities with the performance of market leaders and examine how their own methods can be optimized.
It is also worth taking a look at advertising spendings. Strong deviations could be a first indicator that there is a need for optimization. Consequently, advertisers should keep an eye on these figures: How do market leaders invest their resources and where do they save budgets? The knowledge of how budgets are distributed can serve as best practice and set your own standards as well as define new goals.
Benchmarking can also be used to check how effectively marketing increases sales. Advertisers should consider factors such as revenue generation and market share. Many studies and market analyses provide useful knowledge to increase sales. Advertisers should take advantage of proven best practice methods.
The company's customers are always at the center of all efforts. Only if they are satisfied a product and thus the company can be successful in the long term. With the help of consumer surveys, benchmarking can determine what customers like about a company and what competitors might do better. Marketing performance can be measured by indicators such as customer loyalty, complaints or general customer satisfaction. Especially critical voices provide information about possible optimization needs and give important clues. This customer-oriented approach helps to make marketing more effective in the long term.
Marketers can learn from their competitors. The results of other companies provide important insights that lead to innovation and creativity. This eliminates the often self-imposed barriers to success and sets new standards. A critical reflection of one's own activities and the inclusion of relevant data and opinions helps the company to raise its performance to a higher level and to achieve long-term success.
As an attribution service provider, we repeatedly encounter the question: How does my brand perform compared industry standards? Our Attribution Study provides the answer. With the help of anonymous customer data, the study provides insights into what today's customer journeys look like, how individual customer touchpoints can be assessed fairly and how marketing channels and budgets can be optimized with the findings.