Your business is always striving to reach new heights. You want to be sure that you and your team are performing as best as possible. This means constantly benchmarking or measuring your performance against others in your industry.
But before that, you have to consider some factors, including if you’ve shifted to a digital workplace. This is important because it’s impossible to benchmark without implementing digital workplace best practices.
Whether you did the transition to a digital workplace or not, here are some of the easiest ways to benchmark your team’s performance:
Check Your Company’s Website Analytics
Check the analytics to know how well your website is doing. You can analyze many different types of metrics, such as page views, unique visitors, time on site, and bounce rate. You can also track conversions, such as leads or sales.
Look at Financial Ratios
Financial ratios are another way to benchmark your company’s performance. You can use industry averages to see how you measure up. Here are some of the most common financial ratios:
- Return on Assets (ROA)
- Return on Equity (ROE)
- Debt to Equity Ratio
- Current Ratio
Compare Customer Satisfaction Scores
Customer satisfaction is a critical indicator of success for any business. There are a few different ways to measure customer satisfaction, such as surveys, Net Promoter Score (NPS), and Customer Effort Score (CES).
Utilize these scores to benchmark your company against others in your industry.
Look at Employee Satisfaction Scores
Employee satisfaction is another essential factor to consider. You can use surveys, such as the Employee Engagement Survey, to measure employee satisfaction. This helps you identify areas where your employees struggle or thrive.
Compare Operational Metrics
Operational metrics can give you a good idea of how efficient your company is. If you track things like customer acquisition costs, employee turnover, and product defects, you can start to see where you need to make improvements.
You can find benchmarking data for operational metrics from research firms or industry associations. You can also compare your own company’s data over time to see if you’re making progress.
Use Benchmarking Tools
A few different software tools can help with the benchmarking process. These tools can automate some steps, like collecting data and calculating ratios.
Some popular benchmarking tools include Birst, Tableau, and IBM Cognos. Other free options, like Google Sheets and Microsoft Excel, are also available.
You have to remember, though, that before you can measure your progress, you should implement appropriate intranet governance in the first place. This is especially helpful if you shift to a digital workplace.
Join an Industry Association
Industry associations are a great way to get access to benchmarking data. Most associations have databases of information on various aspects of the industry, such as financial ratios and customer satisfaction scores.
You can also use these databases to compare your own data against others in the industry.
Hire a Consultant
If you want more help with the benchmarking process, you can hire a reliable consultant, such as Digital Workplace Group. These professionals can assess your company’s performance and help you develop strategies for improvement.
Look for consultants with experience in your industry or who specializes in benchmarking. You can find these professionals through research firms, industry associations, or online directories.
Attend Industry Events
It’s also an excellent idea to attend industry events to connect with other companies and compare benchmarking data. These events often include presentations and panel discussions on various topics.
You can also use the event’s website or app to network with other attendees. Many events also have an exhibit hall where you can learn about new products and services.
Read Industry Reports
Reading industry reports is a good way to stay up-to-date on benchmarking data. These reports are usually published by research firms or trade associations. They often include data on various industries, so you can find ones that are relevant to your business.
You can usually find industry reports online or through subscription services.
Talk to Other Businesses
If you know other businesses in your industry, you can ask them about their benchmarking data. This is a good way to start if you’re unsure where to find the information you need.
You can also use online forums or social media to connect with other businesses. Just verify the information you receive before using it for benchmarking.