What is benchmarking and how can we apply it?

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In this article, we'll try to explain a management tool or marketing technique called benchmarking , as well as the techniques we can use to apply this concept.

What is benchmarking?
We can define this concept as a technique that involves looking at the best practices of other companies and using them as a reference. These companies can be direct competitors or organizations in another sector. The goal is to implement these practices within the company itself, adding any improvements it deems appropriate.

This concept is based on the idea that everything has already been created and, therefore, it is difficult to create new things. It aims to bahamas mobile database convey that there is no need to spend money or time as long as we can leverage leading companies to improve their practices and achieve better results.

Benchmarking isn't about copying the competition, but rather learning from their actions and successes and then applying what you 've learned, introducing the changes necessary for continuous improvement.

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If you decide to apply benchmarking techniques, you need to continuously monitor your main competitors, the leading companies in your sector, to identify their best strategies and practices.

We can distinguish 3 types of benchmarking : internal , which would be the one you would apply within your company, competitive , which is the one applied to competing companies, and functional , which is applied to companies that may or may not be competitors.

This technique is important, for example, in SEO ( Search Engine Optimization ) positioning, so that by thinking about your website you can use the keywords that your competitors use to position your website, social networks, etc.

How can you apply benchmarking?
Define the areas to improve : The first step is to define the areas you want to improve and, therefore, use your main competitors as a reference. Some areas or aspects that are often taken as reference in benchmarking are products, manufacturing processes, sales cycles, customer service, etc.
Company Selection : The second step in the process is to select the companies you will use as references and analyze, whether they are direct or indirect competitors, to ensure they meet the criteria they perform best and align with the areas you want to improve.
Gather information : Once you've selected the organizations you'll use as a reference, gather the necessary information related to the aspects you want to improve.
Analyzing the information : Once you've gathered the information, you need to analyze it to compare the aspects you want to improve with other companies. That is, compare your areas for improvement with the same areas your competitors have, trying to identify their strengths to apply to your business.
Determine the best aspects : As a final part of the benchmarking process , once you have identified the relevant companies and information, you proceed to apply those aspects that you consider best to finally adapt them to your company and be able to add the necessary improvements.