f you’ve ever sat in a meeting where someone excitedly throws around the term “benchmarking,” you’re not alone. It’s become one of those corporate buzzwords, like “synergy” or “digital transformation.” But is benchmarking really all that? Or are we just ticking boxes and convincing ourselves we’re improving when we’re… not?
Spoiler alert: It’s a bit more complicated than just “everyone else is doing it, so we should too.”
First Things First: Why Benchmark at All?
Ah, the benchmark. The idea is simple: compare yourself to competitors, see where you stand, and then, in theory, improve from there. The reality? Not so much.
Here’s my take: companies who outperform the benchmark tend to pat themselves on the back, check the box, and think, “Cool, we’re done here.” Meanwhile, if they’re scoring worse than competitors, suddenly the whole benchmarking process is suspect. “Maybe it wasn’t the right survey. Maybe the sample was off.”
Sound familiar?
But there’s a bigger question we need to ask here. Why are you even benchmarking against others in the first place? If you know your customer satisfaction score needs to be 8 or above, or your NPS needs to be +30 (and ideally +70), why not just focus on getting there? Do you really need a competitor to tell you that you have work to do?
Spoiler alert: You don’t.
Benchmarking Yourself: The Real Deal
Here’s a wild idea. Instead of worrying about how you stack up against your competitors, try benchmarking yourself.
Yes, you heard me right. Benchmark yourself. It’s like looking in the mirror and saying, “Hey, I was a 7.1 last year, but now I’m an 8.3. Look at me go!”
Let’s be real: unless your satisfaction scores are already in that coveted 9+ range, you’ve got work to do. So why get distracted by comparing yourself to someone else when you already know what needs fixing? Just keep pushing for better, whether that’s through customer feedback, internal process improvements, or by making your customer service the best in the industry.
Easy peasy, right? Focus on your own growth first.
What About Global Companies?
Now, for all you big, global companies out there, you might be thinking, “But Zanna, we’ve got offices in Spain, the U.S., Czech Republic, and 37 other places. Can we benchmark ourselves across our locations?”
Sure, you can. In fact, it can be pretty effective if done right.
Here’s how: since you’re all working off the same CRM and presumably following the same processes, you’ve got a solid foundation for comparison. You can define which customers to survey and even run those surveys at the same time each year. No guesswork, no apples-to-oranges comparisons.
But here’s the catch: don’t turn it into a competition.
Too often, I’ve seen internal benchmarks turn into a virtual slap fest, where everyone’s pointing fingers at who’s underperforming. “Oh, look, the U.S. office is at the bottom again. What are they doing wrong?”
Not the energy we’re looking for, people. Instead, focus on learning from each other. Maybe the Czech office has figured out an amazing way to deliver personal attention to their customers. Could the U.S. office learn something from that? Absolutely.
The goal is to lift each other up, not drag each other down.
A Word of Caution: Apples and Oranges
Now, let’s talk about benchmarking against other organizations. Here’s where things get murky.
I’ve seen benchmarks all over the place. In one study, the insurance sector had an NPS of +10. In another, from the same year, insurance was at +70. Both were for the U.S., and I couldn’t help but laugh because… really? Plus 70 in insurance? Call me skeptical.
Here’s the problem: you have no idea what you’re really comparing. Maybe one study was focused on a call center’s touchpoint, which tends to have higher NPS scores because customers are rating a specific interaction. Another might have been measuring overall brand NPS, which is an entirely different ballgame. It’s apples and oranges.
And don’t even get me started on the companies using NPS scales that are all over the place—five-point scales, seven-point scales—none of it is standardized. If your benchmark isn’t measuring the same thing the same way, can you really trust the result? Short answer: nope.
If You’re Stubborn and Really Want to Benchmark Against Competitors
Okay, let’s say you’re determined to benchmark against competitors anyway. I get it. Some of you love a good comparison.
Here’s your best bet: work with a research company that uses a panel of consumers. These companies will ask their panelists, “Are you a customer of Company X?” and gather data from there.
But remember, there are risks. Panelists are people who regularly fill out surveys (probably because they get incentives like vouchers or coupons). Are these folks really your average customer? Hard to say. They might have different motivations, and they’re likely getting multiple surveys a month. So, be careful when comparing those results to your own customer feedback.
At the end of the day, benchmarking with a panel isn’t perfect, but it’s as close as you’re going to get.
Don’t Be Lazy: The Real Risk of Benchmarking
Now, if there’s one thing I want you to take away from this, it’s this: don’t let benchmarks make you lazy.
Just because everyone else in your sector has a 7.1 doesn’t mean that should be your goal. Why limit yourself? Why assume that’s the best you can do? If you want to deliver outstanding customer experiences, aim for an 8.5 or higher, and keep pushing.
And please, for the love of all things CX, don’t game the system. There’s been talk in Europe about a “European version” of NPS where 8, 9, and 10s are considered promoters. Why? Because apparently Europeans aren’t as generous with high scores. But you know what? That’s just an excuse.
I once worked with a company that thought the same thing—“Dutch people don’t give 10s!”—so we analyzed the data. Guess what? 30% of Dutch customers rated their experience a 10. So much for that theory. It’s not that the NPS scale is broken. It’s just that you need to do a better job of making your customers happy.
In Conclusion: Benchmark Yourself First
If you really want to make an impact, start by benchmarking yourself. Look at your own performance, identify where you can improve, and push to be better than you were last year.
If you’re a global company, benchmark across your offices—but do it to learn from each other. Help each other grow, don’t turn it into a competition.
And if you absolutely must benchmark against competitors, do it with caution, and don’t let it limit your ambition. You can always do better than the average. In fact, you should.
Don’t be lazy. Be exceptional!
