Why Should Businesses Benchmark?
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.