3 items tagged "benchmarking"

  • Benchmark Against Your Biggest Competitor — Yourself!

    As firms face growing competition for customers, they naturally seek to compare themselves with their peers and competitors, but there is a trap: Leaders don’t compare themselves.

    In the past, it was common to benchmark organizational performance against “industry averages,” and being “above average” was considered good. Today, “above average” is no longer good enough; fickle customers demand exceptional experiences. Delivering those experiences requires exceptional performance; anything less means that another company may steal your customers.

    When we talk with leading modern application delivery organizations, we find that new benchmarking trends are emerging, making traditional benchmarking less attractive. Why?

    • Benchmarking is for followers, not leaders. Organizations want to be “unicorns,” like the Etsys, Netflixes, Googles, and Salesforces of the world. They don’t want to be losing “horses.”
    • Most benchmarking approaches target the IT of the past, not BT. Benchmark methodologies and data were created and heavily used when software delivery capability was considered a cost, not a differentiator. In business technology, software is a key differentiator, and BT leaders want to be the best and continuously improve.
    • Agile, continuous delivery is less about standards and more about creativity and adaptation. Agile and CD have no set standards; 65% of expert firms using Agile mix and match various practices from various frameworks like Scrum, Kanban, SAFe, and XP. One size does not fit all in terms of metrics; with no standard process, organizationstructure, or technology, it’s even harder to compare data between companies.

    So what do leading organizations do instead of benchmarking themselves against external organizations? They:

    • Compare where their company is to where their customers need them to be. Customer needs and satisfaction drive the comparison.
    • Analyze and use data in new ways. New metrics for AD&D, such as post-production metrics, are used in conjunction with more traditional preproduction metrics to drive the analysis. Talent metrics are used to decide how to assemble teams in the most efficient way.
    • Prioritize and improve performance. By analyzing value streams, teams uncover their most pressing improvement needs — not whether they are better or worse than external competitors. This drives much better alignment.

    with competitors anymore. Instead, they compare their current performance with where they need to be as a leader, and that’s what the business expects.

    Source: Forrester

  • How to Benchmark Your Marketing Performance Against Your Competition's

    160225-Man-Painting-Coloured-Arrows-115378220In today's digital marketing world, competitive intelligence often takes a back seat to all the key performance indicators (KPIs) on which marketers are focused—open rates, social engagement metrics, lead-to-sales opportunity conversion rates, etc.

    That inward focus on how well you are doing with your revenue-driving marketing tactics is critical. But it can lead you to celebrate the wrong things. Don't let your KPIs overshadow the importance of knowing exactly how your digital marketing strategies are performing in relation to your peers who are competing against you in the market.

    If you forget to look at the bigger picture, you'll miss a perspective that, well, separates the best marketers from the mediocre ones.

    You can easily keep tabs on how your campaigns measure up against others in your industry without hiring an expensive third-party research firm. Of course, there may be times when you do need customer research and use a fancy detailed matrix of your competitors for in-depth analysis for identifying new products or for market sizing.

    But I'm talking about a quick and easy dashboard that measures you, the marketer, against your competitors.

    Why Spy?

    Competitive intelligence helps you...

    • Increase your chances of winning in the marketplace
    • Shape the development of your digital marketing strategy
    • Create a strategy for new product launches
    • Uncover threats and opportunities
    • Establish benchmarking for your analytics
      Most businesses do not have the luxury of having a dedicated employee, let alone a dedicated team, to gather and analyze gobs of data. However, you can easily track basic KPIs to inform decision-making at your company.

    Having analyzed the digital marketing strategies of numerous companies of various size and in various industries, including e-commerce, SaaS, and travel companies—and their competitors—I suggest the following for benchmarking.

    Website Performance Metrics

    To track the performance of a website, gather data from sites such as SEMRush, Pingdom, Similarweb, and Alexa. While that data is not always accurate when you compare three or four competitors at once, you can spot trends.

    Important metrics to monitor include the following:

    • Website visits: The average number of visitors per month can easily size up how popular you and your competitors are.
    • Bounce rate and site speed: Correlate these two metrics. That's how you can determine whether you need to make changes to your own website. For example, if your website has a high page-load time compared with your competitors, that will impact your page rankings, bounce rate, and overall customer satisfaction.
    • Geographic sources of traffic: Look at what percentage of visitors comes from what regions. That's critical if your company plans to expand beyond its current geographical presence. It will also allow you to spot global opportunities by finding gaps in distribution when looking at all competitors.
    • Website traffic by channel: See where your competitors choose to spend their time and money. For example, a company that has a higher percentage of visitors from email probably has a large prospect database. If you look at their website, you can examine how they collect data for their email marketing programs. Are they getting website visitors to sign up for newsletters or special offers? If not, they may be purchasing prospect data from a data provider. You can adjust your own strategy to ramp up marketing campaigns in areas where your competitors are not actively engaging prospects, or to increase spending in areas where they are outperforming you.

    Benchmarking reports from industry research reports are also helpful for tracking average open, click-through, and conversion rates.

    By putting together your newly found competitor insight and your own metrics, including your past performance, you can establish your own benchmarking.

    Mining for More Data

    Where are your competitors spending their advertising budgets? How are they using social media and PR? What jobs are they posting? Those answers are not hard to find, and they provide powerful insights.

    • SEO/PPC research: Tools are available to help you determine what ads your competitors are running and how they rank for particular keywords. Check out SEMRush, SpyFu, and WhatRunsWhere. You can also look at their overall spending for PPC campaigns. Depending on the source, however, the accuracy of this data can be as low as 50%. So use it for gauging overall direction, but don't rely on it entirely.
    • Social media: This is probably the hottest area of marketing and the hardest to assess. Mining data on social channels is especially tough when tracking consumer brands. It's best to monitor your competitors' activities monthly, and make sure to look at the posts ad promotions that companies generate. When updating or changing your strategy, you should have a solid understanding of what social media channels your competitors are using, types of posts they are making, how frequently they are using social media, and how successful they are (including number of users and levels of engagement).
    • PR: Press releases, financial reports, and thought-leadership blog posts distributed by your competitors provide great insight into their partnerships, possible marketing spending, and other initiatives.
    • Job postings: From time to time, take a look at LinkedIn or other job sites and you can get a good idea of where and how the company plans to expand.

    Frequency of Competitive Analysis

    The answer depends on the type of business that you have and the competitive landscape.

    For example, if you are selling a product in the SaaS Cloud space where you have 10 competitors, most of which are leading innovators, it makes sense to track their every move. However, if you are a B2B company and you have only one or two competitors in the manufacturing sector, you probably can get away with doing some basic benchmarking once every quarter.

    It is advisable to do a competitive analysis prior to changing strategy, launching a new product, or making tactical plans for the next quarter or year.

    Don't Be Afraid: Know Where You Stand

    Here's the bottom line: Don't get too excited about your 5% jump in email open rates, or passing a "likes" milestone on Facebook. Have the courage to see whether you are really a marketing rock star by benchmarking yourself against your competitors. Your business needs to know what your competition is doing. And I don't mean just knowing your competitors' products and pricing.

    With the insights you'll get from these tips and tools, you will be able to create a solid strategy, spot-on tactical plans, and (at the very least) a fantastic presentation to your executives or board.

    Source: MarketingProfs

  • Why competitive benchmarking is key to successful competitive intelligence

    Why competitive benchmarking is key to successful competitive intelligence

    Most businesses know their own strategy through and through, and recently, more companies than ever before are investing in competitive intelligence. The real secret to success is combining those two knowledge sources – monitoring your own strategy alongside that of your competitors. This brings us to a concept called competitive benchmarking, which is critical to competitive analysis success. Keep reading to learn how to benchmark your company against your competition for a successful competitive analysis. 

    What is competitive benchmarking? 

    Let’s start with the basics. Chances are, you have transparency across your organization, so you have insight into what product is working on, which campaigns marketing is launching, and how your revenue is performing. As you conduct a competitive analysis, you’re gathering similar information on your competition. You’re gathering product information, revenue information, marketing campaign information, and more about your competitors.

    Now, you need to know how you compare to your competitors. Where do you stand within the market? This is called competitive benchmarking – comparing your company performance against your competition to measure how you stack up. You can then identify gaps, similarities, and adjust your strategy accordingly. Let’s dive into how you can gather your competitive intelligence data and benchmark your own company alongside your competition. 

    Monitor your competitive landscape 

    It’s great to know every move your competitors make, if possible, even before they make a move. But we’re not psychics, right? So how are we going to know what our competitors are going to do before they make a move? You need to pick up on smaller signals, or breadcrumbs, to gain insight into what their next major move may be. 

    In order to best analyze your competitive landscape, you should look for relative changes in investment. It’s common practice that companies will ramp up certain strategies such as content, social media, or campaigns when they have a big announcement coming up. Are they posting a lot of content around a specific product feature? Are they targeting a certain persona more than another? Which positions are they recruiting for? Discovering the answers to these questions, and similar questions are great tactics for gaining competitive insight. These small competitive insights can give you insight into your competitor’s overall strategy. Based on where your competitors are investing, you can make predictions as to where they’re heading next. 

    In addition to monitoring what your competitors are doing, it’s important to monitor what your competitors’ customers are saying about the solutions they use. There’s a lot we can learn from our competitors’ customers, including what they like and dislike about the product they’re using.

    Take note of the positives and negatives highlighted in the customer feedback. This information can be compared to what your customers are saying about your own company. Where are you struggling where your competitors are excelling? You can use the positive feedback from your competitors’ customers to learn, and you can use the negative reviews to better align yourself with the needs of your market. This information is valuable for all teams within your company. Not only is it beneficial to product managers, because they can develop your product accordingly, but it’s beneficial for account executives and marketers alike. 

    Leveraging third-party reviews is a great way to gain insight into your competitors’ strengths and weaknesses. This piece of your analysis can help you measure where you need to improve and where you lead the charge within your industry. 

    Break into untapped opportunities 

    Now that you’ve monitored your competitive landscape and gathered competitive insights, you need to insert your own company into the analysis. Measure your company performance in the same way you measure your competition. That way, you can see where you crush the competition, and identify where there is room for you to break into untapped opportunities. If your competitor is excelling in a specific area, it may be harder to knock them out of their top spot right away. However, filling the gaps in the market will help you gain the competitive edge you’re looking for. 

    The great part about tracking yourself alongside your competitors is that you can identify where gaps are in the market. If you can find the gaps within your market, you can break into that space and serve an unmet need. This also gives you the opportunity to lead the charge in new areas within your market. This is a great way to grab the leads and opportunities that your competitors are missing out on. You’re now offering your target audience something of value that they’re unable to get from your competitors, giving you a unique competitive advantage. 

    Make sure your competitive analysis is actionable 

    Conducting competitive intelligence research is time-consuming, especially when you’re also putting together a formal competitive analysis. To get the most out of your efforts, you want to ensure that you’re turning insights into action. 

    The important thing to remember about competitive intelligence is that it’s not only about what your competitors are doing; it’s about how you compare to your competitors, and how you can turn your insights into action to best serve your market. The key to a successful competitive analysis is benchmarking yourself alongside your competitors, and identifying the gaps in your market to showcase your solution and position yourself as a market leader. 

    Author: Emily Dumas

    Source: Crayon

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