We know that in most cases, customers look at multiple options when looking for a supplier and draw comparisons between them. How does your brand stack up against the competition?
To ensure your brand comes out on top, it’s necessary to continually measure its performance against the market. After all, if you can’t benchmark your brand, you can’t improve it.
So, here are 8 top tips on how to improve your brand through benchmarking:
1. Track the trends – Customer satisfaction trackers and brand trackers can capture performance on a regular basis, allowing you to see the impact of changes on the KPIs that matter.
2. Benchmark against “best-in-class” – The most valuable insights come from comparisons with competitors, especially the leading “best-in-class” brand.
3. Compare apples to apples – In most cases comparisons should be made against more direct companies serving the same target audience. However, taking a look at the wider market can identify transferable success.
4. Outperform the norm – Tracking brand efficiency (how many of those aware of a brand are brand advocates) is crucial. To beat the competition, aim to convert as many as possible of those who are aware of the brand into brand advocates. For example, good brands should aim for a 1 in 5 conversion rate, with better brands aiming for 1 in 4 and the best brands aiming for around 1 in 3.
5. Anchor with industry average – For a more realistic and representative view of a market, benchmark against specific industry averages rather than overall b2b averages.
6. Avoid certain country comparisons – be wary of cultural norms and differences when comparing different geographic regions. Where possible, stick to comparisons within the same country or region.
7. Accept that metrics reflect different, and sometimes unrelated, performance – for example, the fibers and fabrics industry performs well on Net Promoter Score (NPS) but poorly on Net Value Score (NVS). This is probably because it’s easier to deliver a superior customer experience but more difficult to differentiate what is essentially a commodity.
8. Raise the bar – Research by McKinsey shows that improving the customer experience from average to exceptional can result in a 30% to 50% increase in likelihood to purchase. Raising the bar clearly impacts the bottom line.
To learn more about benchmarking, take a look at the full article looking at each tip in more detail.