Benchmarking measures a specific metric against set indicator. Business benchmarking is undertaken to determine how an organisation is performing compared to competitors in the industry. The process involves obtaining high-quality business data to analyse and establish key performance indicators.
For businesses, benchmarking data should compare both business demographics such as size and income and performance metrics. There are many types of benchmarking that business owners can utilise to drive long-term business growth. However, the most important are:
You can review how we do business benchmarking with our Benchmarking Suite.
When looking at what is benchmarking in a business sense, it can also be broken into two categories: external and internal. External benchmarking is the process of comparing data of an individual business against a range of other similar businesses. Whereas internal benchmarking is setting internal goals and then assessing the businesses achievement against these targets. Internal benchmarking can also be the process of comparing internal departments against each other to establish company benchmark standards. Our software delivers a range of both internal and external benchmarking solutions:
One of the most important uses of benchmarking is to assess a business’s performance against direct competitors. This enables business owners to keep a competitive edge in a growing economy.
Annual business benchmarking enables owners to gain a clear accurate picture of how their business is performing. This enables companies to see their real performance levels and identify opportunities for improvement.
Business benchmarking should also be used to assess spending habits to ensure management invest wisely. For example, if a business spends much less than the industry standard on information technology, it may be worth investing in new systems to increase productivity.
It is also important for businesses to review the pricing of products and services regularly. This ensures companies know how much they should charge for products and services based on the industry benchmarks.
Annual benchmarks can support owners to address how much to spend on customer service and value-adding for customers. This process can increase customer satisfaction and ultimately lead to increased repeat business.
Our Business Benchmarking Software gives business owners a complete review of all performance metrics relating to a specific industry. This enables owners to see key insights such as:
As one of Australia’s most comprehensive business benchmarking tools, in every report we provide a range of strategic recommendations based on a business’s results. Further, each report includes an industry analysis so business owners can assess key trends and opportunities that may be relevant to their businesses. Further, we show ATO Benchmarks so you can see if you may be flagged for an audit.