{"id":47460,"date":"2020-03-26T21:01:29","date_gmt":"2020-03-27T01:01:29","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=47460"},"modified":"2020-03-26T21:06:21","modified_gmt":"2020-03-27T01:06:21","slug":"benchmarking-101-why-your-results-are-the-only-ones-that-matter","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/benchmarking-101-why-your-results-are-the-only-ones-that-matter\/","title":{"rendered":"Benchmarking 101: Why Your Results Are the Only Ones That Matter"},"content":{"rendered":"

Are you forever benchmarking your company\u2019s results against your competitor\u2019s, others in your industry, and virtually everyone else? It\u2019s common practice to see how you stack up against the competition, but you may spin your wheels. With the variety of variables, data sets, and contexts between organizations, you\u2019re comparing your apples to their oranges. What you really need is to focus on your own metrics or key performance indicators (KPIs) first.<\/span><\/p>\n

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What are your KPIs?<\/b><\/h2>\n

\u00a0<\/span>Most companies know their KPIs<\/a> intimately. First, you ask a question (e.g., on a scale of 1 to 10, how likely are you to\u2026). Then you set a goal, collect data, and measure that data against your goal. And you keep retesting for consistency.<\/span><\/p>\n

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Finally, apply this methodology to how your business interacts with and engages your customers. To measure and manage your Customer Experience<\/a> (CX) KPIs, for example, you might focus on improving your Net Promoter Score (NPS). Then you benchmark your current NPS against your goal.<\/span><\/p>\n

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Why do your metrics matter more than your competitors’?<\/b><\/h2>\n

Your KPIs help you measure your ability to set and achieve your goals and initiatives. Customer satisfaction, employee performance, and audience engagement metrics allow you to transform the data you collect into ways to improve. As an example, surveys and other data collection methods help you to drive a better CX. And since most companies are inundated with data today, it\u2019s easy to capture and interpret this golden intel.<\/span><\/p>\n

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More importantly, carefully measuring your metrics is critical to improving and growing your business.<\/span> Bernard Marr<\/span><\/a>, a leading expert in KPIs and metrics, states:<\/span><\/p>\n

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“Used along-side effective strategic planning, the right KPIs and business metrics act as essential navigation tools that help organisations understand how well they are doing in delivering on their strategic goals. If managers don\u2019t want to fly blind, then they require relevant and meaningful business measures to inform their decision-making.”<\/span><\/p>\n

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Peter Drucker<\/span><\/a> said it best, perhaps:<\/span><\/p>\n

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“You can\u2019t improve what you don\u2019t measure.”<\/span><\/p>\n

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Experts such as Drucker and Marr believe it’s best to capture data and measure your own metrics instead of benchmarking arbitrary numbers against competitors. If you don\u2019t, how will you know if you\u2019re succeeding?<\/span><\/p>\n

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How to set KPIs and business metrics<\/b><\/h2>\n

Everyone has their own take on how best to set your goals, such as the <\/span>SMART<\/span><\/a> and<\/span> SMARTER<\/span><\/a> methods. However, the following <\/span>“Six A\u2019s” of KPI best practices<\/span><\/a> will help you set up a system that works best for you.<\/span><\/p>\n

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