What is Business Benchmarking?
Business Benchmarking is contrasting one’s business procedures and measurements of execution to the industry’s bests and best practices from different organizations. The dimensions which are commonly measured are cost, time and quality. It is a means of identifying the best practices in your particular industry and allowing you to familiarize yourself with the methods that other businesses use to increase profit, thus making your business a worthy competitor.
Pretend you own an electronics store which sells 70 devices per day on average. There are 5 more electronic stores in your area who sell more devices than you do per day. Studying the sales strategies of these other businesses is considered Business Benchmarking.
Here are 3 ways which your company can benefit from Business Benchmarking:
Business Benchmarking can improve product quality
There’s always room for improvement as one can only get better. How do we go about doing this? We study other products and services similar to our own and we keep track of the industry’s standards. Constantly keeping track of these things is a great way to keep your business from getting stagnant.
Increases Customer Satisfaction
The best way to keep your customers is really getting to know them and improving your company’s methods and efficiency. Customer Satisfaction is important and is considered a prime measure for Business Benchmarking.
Gives you a chance to outperform competitors
Understanding the weaknesses and strengths of your competitors puts you at an advantage. This also provides room for new ideas based on what you’ve learned from your competitors.
Give Business Benchmarking a chance and you’ll see the good it can do for your business! Getting to understand your competitors and your industry is a great way to improve basic business processes and increase efficiency.