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Benchmarking, a point of reference

The Dot Studio

When creating a strategy, having a clear objective, and gathering ample data, a competitive analysis can be key to understanding not only what's happening in the market but also your own business. Furthermore, you can identify your competitors' strengths and weaknesses and, consequently, improve your market positioning.

That's right, benchmarking involves an in-depth study of your competitors to understand their strategies and best practices. This analysis allows your company to adapt some of their actions to attract and retain customers. Benchmarking is an ongoing process that helps companies stay ahead of the curve and innovate in a constantly changing world. Therefore, it demands continuous learning and adaptability. We identify three types of benchmarking.

Internal benchmarking: This involves evaluating and analyzing one or more areas within the same company. This allows for comparisons and helps determine areas for improvement and what can be learned from one another. If performance is better in one department, you can identify what they are doing well and apply those practices to other departments.

Competitive benchmarking: This involves studying other companies in the same sector to analyze their practices. This helps identify your weaknesses in terms of service, processes, and strategies, enabling you to take action to become more competitive.

Functional benchmarking: Functional or strategic benchmarking uses the specific strategies or processes of companies in other sectors, not necessarily competitors, as a reference point.

In digital marketing, benchmarking is even more important. With the constant evolution of online platforms and social media, audience behavior changes rapidly.

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