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.
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.