Benchmarking

While you are developing your business, it is important to keep on eye on your market position. A great way to do this is through benchmarking, where you measure the performance of your business against that of your competitors. Effective benchmarking:

1. Establishes industry standards
2. Identifies strategies to achieve the best possible relationships with your customers and gain the best possible results on your bottom line
3. Observes how your competitors achieve these standards and utilise these strategies
4. Applies this knowledge to achieving and maintaining these results yourself

Benchmarking is about acknowledging your strengths and weaknesses, and identifying areas of opportunity and improvement – based on your competitors’ performance in the marketplace. It is imperative to always be aware of what your competitors are doing and how successful they are in doing so.

A good benchmarking review can help you in your business planning and cash flow management. Benefits of benchmarking include:

• Increased customer understanding
• Competitor awareness
• Emphasis on innovation and improvement
• Increased efficiency and productivity
• Improved customer retention and customer satisfaction
• Higher profits