Benchmarking isn't just a buzzword; it's a vital tool for businesses to understand their market standing and uncover areas ripe for improvement. In this guide, we'll discuss the strategies to master this art, from nailing down the scope to adopting a three-step research method and ultimately making sense of the data.
So, let's dive in and explore how to turn benchmarking into your competitive advantage.
Key Points:
1. Define the Scope Precisel
1.1 Start with a clear vision of what you want to uncover. ➡️Think about your business needs; what would you like to prove?
* For example, let's think about the need for new features for your product, an electric vehicle.
1,2 Choose the right competitors to compare against.➡️Think of those top-tier competitors in a similar position to yours.
* For example, Let's compare ourselves to Nio, Tesla, and BYD.
1.3 Decide on the specific areas your benchmark will cover. ➡️What do you want to know? Failure to define research areas can make benchmarking slow.
* For example, we want to know what innovations in the multimedia system are being made in the whole EV market: what they offer, how they offer it, how much they charge for it, how they sell it, and how they have ideated this.
2. Implement a Three-Step Research Approach
Like a funnel, from general to specific
a) Preliminary Overview
* Get a broad sense of what your competitors are up to.
* They value proposition, mission, vision, and way of thinking.
* Understand their offerings and how they deliver them. How is their catalog distributed?
b) Focused Investigation
* Dive deeper into the specific area of interest.
* For example, if you're benchmarking pricing, look into the different pricing plans, features, ways to communicate it, promos, seasonal offers, and changes over time.
c) Deep Dive
* Go all-in on detailed analysis.
* Following the pricing example, going deeper involves studying contracts, checking clauses, contrasting offers with industry trends and predictions, and even reading the fine print of service agreements.
3. Identify Patterns (AI chat tools can boost this step)
* Systematically organize your data for clarity.
* Leverage AI tools to spot trends and patterns across your competitors.
4. Present Results in Contex
* Compare your findings with other relevant research you have available.
* Align your results with broader market insights to make them actionable.
* Prepare a compelling presentation that ties everything together for your client.
Final Thoughts:
Conducting an effective benchmark is all about being precise, thorough, and thoughtful. After defining the study interest and applying the funnel 3-step strategy, remember to bring AI into the mix; it's an invaluable tool for uncovering insights that might otherwise go unnoticed.
Remember, the goal of benchmarking is not just data collection. It's about delivering strategic insights that can truly make a difference. By following these steps, the Iota Impact team always provides a precise and complete reference framework for clients with different needs, giving them a competitive edge.