The neighbor’s grass always looks greener. Do you agree with that statement? Regardless of your answer, we agree that it is impossible to stop “snooping” on the actions of our competitors, is not it? In the business world, we call this benchmarking. In fact, do you know what benchmarking is ?
Of English origin, the word is a variation of benchmark, which means reference. It is a deep strategic analysis of the best practices adopted by companies operating in the same industry . Therefore, it allows you to evaluate processes, products and services and compare them with yours.
Furthermore, data collected during a research process are analyzed, interpreted, evaluated and measured. Thus, it is possible to translate and use them in favor of your clinic. The goal is to improve results from planning and executing actions based on the indicators pursued by the company.
In this article, we will explain the importance of benchmarking for your clinic, what step by step to do and how it helps in decision making. Also, find out what mistakes should be avoided and what tools to use in the process. Look!
How important is benchmarking for your clinic?
Comparing competitor processes and services with yours is a way to improve your business. Of course, not all examples followed by other companies are valid in various contexts. However, certain initiatives can generate insights that will contribute to the success and expansion of your clinic .
Therefore, you should invest in benchmarking to:
- discover successful practices of companies with deep knowledge on a certain subject;
- identify trends and differentiate in the market;
- audit the company’s approach and know which areas need improvement and change ;
- be able to invest in promising resources and services;
- having references from companies operating in the same segment as yours;
- develop a plan in order to develop skills and strategies that allow business expansion .
What is the step-by-step approach to benchmarking?
Now that you understand what benchmarking is and how important it is for your clinic, here’s how to do it!
Monitor from one to three competitors
Monitoring the practices of up to three competitors is enough to get the information you need and make comparisons. In addition, it is also possible to select companies from other branches to have inspirations that you would not achieve when analyzing only the segments in your area of expertise.
Define the analysis indicators
After choosing the companies, establish which analysis indicators will be compared . In other words, identify what you want to know about a clinic and then assess how competitors deal with those same issues. For this, consider the qualitative and quantitative aspects.
Collect data to be analyzed
There are paid and free tools, which you can use to gather the information you want. The Google Analytics is an example of a free resource. In fact, it is a complete option, which helps many companies in capturing data and, therefore, in obtaining insights.
Compare and analyze the data obtained
With the information in hand, it’s time to analyze, interpret, evaluate and measure. Finally, it is up to you to compare the results with those of the competition to understand how far you need to go to obtain a better performance . Keep in mind, however, that not all the data collected is important to your business.
Identify strengths and weaknesses
After all this process, you will be able to identify your strengths and those that need to be developed. The recommendation is to prepare a report, with the aspects considered relevant to the business – opportunities, threats and strategies – that must be implemented to improve the company’s positioning, for example.
How does benchmarking help in making strategic decisions?
The best way to make good decisions in a company is with the backing of reliable data, well analyzed and interpreted, do you agree? Therefore, when such information is compared with that of a competitor in its segment, the chances of success are even greater.
Of course, for this to happen, it will be necessary to assess whether you really want to achieve the same competitive indicator . The question that needs to be asked is: why do I want to get there? Having clarity about why and the importance of pursuing a goal for your business, a strategic plan can be put together.
Depending on your goals, achieving them can be more or less complex. If your desire is to offer a new technique to your customers, for example, you will need to invest in that knowledge or partner with a professional who masters it. If you understand that the action will bring positive results to the clinic , bet on it.
What mistakes should be avoided when benchmarking?
To avoid doing benchmarking in the wrong way, every entrepreneur needs to observe some determining aspects. See what they are:
- analyze your competitors’ successful ideas , but before you want to apply them to your business, see if they converge to the context or moment of the company;
- be careful with mistaken evaluations. Not everything that the competition does is good, so make a critical analysis of the actions taken . They may work for another company, but not yours;
- take appropriate precautions to avoid over-focusing on the competitor. Remember to preserve your identity and your positioning in the market instead of just copying what others do;
- select the data you believe to be the most relevant for bringing results to your clinic . But never stray from business principles when adapting an initiative.
What tools can I use in this process?
Data collection and monitoring can take place through tools that help a lot in the benchmarking process :
- SimilarWeb : enables the collection of complete and comprehensive information, such as traffic from the origin of the accesses and where the clicks come from;
- SEMrush : allows you to understand the investments in research and paid advertisements made by the competitor. It also allows access to the use of keywords and landing pages from other sites;
- Klout : is used, for example, to identify which subjects your competitors are most influential on social media.
Did you understand what benchmarking is and how it can be useful for your clinic? So, how about starting to monitor your competitors’ practices ? If well analyzed and interpreted, they are able to generate insights for your business to thrive. So don’t let the successful actions of other companies go unnoticed, combined?