Marketing benchmarks are standard measurements that are used to compare your results to those of your competitors or industry. This is helpful to identify areas of competitive advantage, competitive parity and to discover where you are underperforming. Benchmarking requires data about your competition. This can often be found in public sources such as quarterly financial reports or by interviewing your target market. It is also common for industry organizations and competitive research firms to offer benchmarking data. The following are common types of marketing benchmark.
The percentage of a target market that recognize your brand symbols as compared to competing brands.The percentage of a target market that recall your brand when prompted with a product category. For example, "can you name a few luxury hotels?"The percentage of a target market who name your brand first when prompted with a product category.
The percentage of customers who are happy with you as compared to the competition. The number of your customers who purchase at least once a month, or with a frequency that is considered loyal in your industry. For example, a loyal customer for an automotive company might purchase once every three years.
RatingsReviews such as customer ratings of hotels on a major travel site.
Product PerformanceA figure of merit for your products. For example, the conversion efficiency of solar panels. Often used as a product development benchmark.Customer perceptions such as "which of these airlines is more reliable?"
The percentage of total industry sales in a product category that is captured by you.The percentage of spend for a product category that your customers spend on you. For example, the percentage of a bank's IT capital spending that goes to your software products and consulting.Your cost for acquiring a customer compared to your industry.
Customer lifetime value is an estimate of how much your current customers will spend on your products and services in the future. Based on average spend per year and customer retention rate.
Customer Retention RateThe percentage of customers that you don't lose in a month or year.
PricesBenchmarking your prices in different markets against the competition. Used to optimize your pricing strategy.
Costs & MarginsBenchmarks of efficiency and profitability such as your cost per unit. In a price competitive market, a lower cost per unit is often the primary type of competitive advantage.
ReachThe percentage of a target audience that you reach with marketing messages as compared to competitors.The percentage of visitors to a location who take you up on an offer.Measures of customer engagement such as the amount of time they spend on your website.
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