Benchmarking

Benchmarking is a comparative analysis of market best practices and industry benchmarks aimed at improving one's own business. The method is based on a detailed comparison of key characteristics, allowing for the identification of market gaps and an analysis of the underlying factors.

This research is also used as a preventive and supportive measure: it allows one to "keep a finger on the pulse" during the emergence of new players (startups) or the release of updated product versions by competitors. Systemic parameter comparison helps define priorities: deciding what to focus on for product improvement or, conversely, identifying which characteristics should be emphasized as fundamental advantages. After all, the market features both fleeting hype trends and reliable classics based on proven solutions.

If benchmarking identifies real growth areas and the team is already working on product updates, the research results become a powerful tool for strengthening loyalty. A manager can use this data as a strong argument when communicating with clients:

We have conducted a comparative analysis of the latest market innovations, specifically Danish and Finnish counterparts. Based on this data, a new model is being developed which, in addition to standard functions, will feature three extra options that have become relevant only this year. We are integrating global best practices into our local product.

Thus, benchmarking turns unexpected market challenges into a strategic information advantage. This serves as a foundation for marketers to prepare and publish announcement materials highlighting the company's innovativeness and its ability to stay ahead of market demands.

Why is research beneficial even if you aren't changing the product?

Even if the analysis leads to a decision to keep the current product version unchanged, the data is implemented across other business units. Keeping sales and marketing departments informed about competitors' innovations or startups—along with a clear understanding of the company's counter-arguments—allows sales reps to remain competent in the client's eyes. For marketers, it provides the opportunity to produce timely content that reinforces your position amidst current trends.

Research Working Group Composition

Depending on the research subject, a working group is formed capable of performing a competent, multifaceted, and unbiased analysis. Industry experts and target audience representatives are involved in the process. The workflow is coordinated by an analyst who ensures the collection of all available information, its systematization, and the preparation of the analytical report.

The group may also include the client's employees, albeit in a limited number. This helps avoid the "tunnel vision" effect common among those deeply involved in internal processes who may not always be able to maintain full objectivity.

When should you entrust benchmarking to external specialists?

Benchmarking is often a natural part of the internal processes of many companies. However, engaging an external research company can be a valuable addition in the following situations:

1. Forming an independent expert panel. When it is necessary to involve niche specialists not connected to the company's internal processes who can provide a fresh and objective view of the subject of analysis.
2. Organizing consumer feedback. When the research requires involving relevant representatives of the target audience to obtain unbiased evaluations and analyze the user experience.
3. Obtaining a guaranteed independent assessment. This allows for the complete exclusion of internal corporate subjectivity. Such an approach is particularly appropriate before making strategic and high-cost decisions as a tool for validating internal benchmark results.
4. Internal resource optimization. When a research need arises, but the internal team is focused on other priority projects and cannot allocate sufficient time for high-quality, deep analytics.