Feedback Management
Benchmark
What is a benchmark?
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Definition of a benchmark
A benchmark is a reference point against which a business can compare processes, operations, and products.
You can use benchmarking to measure the performance among internal departments or to compare your business to direct competitors. Benchmarks can also reveal how well your company is doing against data from the industry’s best practices.
What is the difference between a benchmark and a KPI?
Benchmarking helps businesses measure quality, cost, time, customer satisfaction, and effectiveness against other companies or among internal departments.
In comparison, key performance indicators (KPIs) are used to improve business outcomes by evaluating projects, team members, or business units against the company’s own strategic goals.
General FAQ
What is a benchmark?
A benchmark is a powerful management tool that helps businesses compare their performance levels against direct competitors, industry best practices, or even other companies from different markets.
How can you use a benchmark?
Benchmarking can be used to measure both internal and external performance. More specifically, organizations can employ benchmarks to compare performance among internal departments, measure their business against competitors, or discover how they stack up against the market in general.
What is a benchmark example?
By benchmarking your costs against the industry’s average, you can discover areas in which you’re overspending — then act to lower overheads. Consequently, you can evaluate how well your customer service team is doing by measuring the number of complaints against that of your most successful competitor.
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