What is Competitive Benchmarking?

What is competitive benchmarking?

Competitive benchmarking is a method of comparing and evaluating product or company metrics against competitors. Using competitive benchmarking helps you understand your competitors and your comparative strengths and weaknesses. It allows you to identify your competitive edge, and build a strategy for capturing more market share and higher profits.

Examples of competitive benchmarks

Let's take a look at some examples of competitive benchmarks for hardware companies. Say a hardware company is building a new smart thermostat and they are new to the market. They may look at things like:

Company	Product Webpage	Amazon Star Ratings	# of Reviews
Company A	www.companyaproduct.com	4.8	1,800
Company B	www.companybproduct.com	4.1	2,200
Company C	www.companycproduct.com	3.7	3,600

The team could also purchase competitor products or recruit people who own the product and collect feedback about: Issues, Ideas, and Praise. Learning this information gives the team a leg up on the competition, since they can identify and plan around new opportunities.

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