A business-critical process, retail benchmarking involves companies comparing their own performance metrics and standards against those of their rivals. It is an invaluable exercise for helping companies understand how well various elements of their operations are working, identify possible areas for improvement, and account for multiple factors, from pricing to promotions.
As one of the UK’s leading names in retail insights and business intelligence, Assosia offers a broad selection of omnichannel retail benchmarking services, helping brands compare their pricing strategies, promotional choices, product mixes, and countless other performance metrics against both their closest rivals and industry averages.
With the insights Assosia provides, our clients are able to better understand their market positions and operate more confidently, using data to inform every move and pave the way for future success.
Who Is Retail Benchmarking For?
Retail businesses of any size or operational scope – from smaller start-up companies to larger, established brands – can benefit from retail benchmarking. It is a viable and valuable process for any firm that wants to picture of its performance and how its operations compare with core rivals and industry averages.
Merchants, manufacturers, and suppliers can employ retail benchmarking, particularly those in volatile or dynamic sectors of the retail space, such as fast-moving consumer goods (FMCG) and consumer package goods (CPG). It can provide deep data and impartial insights that these kinds of companies need to make more informed decisions and develop smarter strategies as they move forward.
Why Retail Benchmarking is Crucial for Business Success
Without retail benchmarking, retail companies may struggle to truly understand how well their business operations are performing, how effectively they are reaching their customers, and where they stand relative to their rivals. With it, companies can enjoy a range of important advantages, which include:
- An independent perspective of your company’s performance compared to others
- The ability to identify performance gaps or weaknesses to focus on in the future
- Development of more standardised sets of processes and metric assessments
- More data-driven decisions and informed strategic choices
Types of Benchmarking Used in Retail
Retail benchmarking can take several forms and focus on numerous different facets of your retail operations, including:
- Products: Compare your product selection with those of similar brands in your sphere.
- Pricing: Price benchmarking compares your prices to industry averages.
- Promotions: This examines how your promotional prices and strategies compare with industry standards.
- Omnichannel: Utilise a holistic approach that explores numerous facets simultaneously.
Each type of benchmarking produces different results and insights, and it is often best to pursue multiple approaches or opt for an omnichannel approach with the aid of benchmarking retail software, such as the Assosia pricing tool. In addition to providing relevant software, Assosia also offers an array of benchmarking services to suit specific business needs:
Internal Benchmarking
This focuses on internal teams and departments, comparing them on common processes. Sales, marketing, and support teams, for example, may be compared to see how well each one is performing, or large retail brands may compare the performance of different branches.
External Competitor Benchmarking
This compares one company’s performance with that of its competitors, usually focusing on brands of similar size and scope to the one conducting the benchmarking. Various factors may be compared, including product mix, prices, and promotion tracking.
Historical Benchmarking
This involves a company comparing its current performance metrics to historical performance data. A company might look at how well it is performing today compared to the same point last year, for example, to see if there have been notable improvements or drop-offs.
Fixed Benchmarking
This focuses on assessing performance against a specific, fixed target. A retail firm might set itself a goal of a certain number of new loyalty card sign-ups by a certain date, for example, and can use benchmarking to assess how successfully it is working towards that goal.
Choosing the Right Retail Benchmarks for Your Organisation
Retail benchmarking is a data-driven process, and it is absolutely vital to have the most accurate, up-to-date information in order to carry it out effectively. That is where Assosia comes in. We have worked with some of the world’s leading retail companies, gathering specific data tailored to each client’s needs and helping them paint the clearest picture of their metrics and market positions.
We offer targeted, bespoke, and high-quality data delivery, using both offline (in-store) and online gathering methods to eliminate the risk of data gaps. Our collection process is also completely customisable to match your exact requirements, helping you get valuable and specific insights, not just general facts and stats.
With Assosia’s retail benchmarking, you are in charge, able to customise reports and hierarchies, update and change product requirements on the fly, and work with your own dedicated account management team. With our help, your company can get the precise knowledge and actionable insights you need to enhance and elevate your operations.