What is benchmarking in marketing?

Benchmarking is the process of using data to compare a mobile app's marketing strategies and performance metrics with those of its competitors. This involves assessing various aspects such as user acquisition, engagement, retention rates, revenue generation, and overall app performance.

While competitor benchmarking is the most common method, there are several other types of benchmarking:

1. Performance benchmarking: Performance benchmarking focuses on measuring and comparing specific key performance indicators (KPIs).

Example: A mobile gaming app company conducts performance benchmarking by comparing its in-app purchase (IAP) volume with that of a leading competitor's game in the same subvertical. They also analyze the click to install time (CTIT) and user churn rate against industry averages to identify areas for improvement in user experience and retention strategies.

2. Process benchmarking: Process benchmarking, or practice benchmarking, involves comparing and analyzing the underlying practices, strategies, and workflows of different companies to identify and adopt best practices that drive high performance.

Example: An e-commerce app studies the customer support strategies of a renowned online retail app. They analyze how the other app handles customer queries, processes returns, and manages user feedback, aiming to adopt similar practices to enhance their own customer service efficiency and effectiveness.

3. Internal benchmarking: Internal benchmarking compares the operations, practices, and metrics within various units of the same organization to share best practices and standardize processes.

Example: A developer with multiple mobile apps across different verticals, such as lifestyle, productivity, and fitness, compares KPIs across these apps. They analyze how features like push notifications, user interface (UI) design, and in-app rewards affect engagement in each app. By identifying the most successful strategies from their diverse app portfolio, they aim to implement these best practices across all their mobile apps to enhance user experience and increase overall engagement.

4. External benchmarking: External benchmarking entails comparing an organization's performance with external entities, including direct competitors and apps in different verticals, to gain insights into industry standards, competitive positioning, and emerging market trends.

Example: A health and fitness app compares its user engagement and retention strategies with those of popular apps in different subverticals, like meditation and diet tracking. This helps them understand broader market trends, innovative features, and effective engagement techniques to enhance their competitive edge in the health app market.

1. Improved operational efficiency.
2. Deep insights that guide better decision-making.
3. Competitive advantage through best practices.
4. Cost reduction and efficiency.
5. Elevated customer satisfaction and loyalty.

A mobile measurement platform (MMP) like Adjust plays a pivotal role in the benchmark report stage of the benchmarking process. A benchmark report is a comprehensive document that compiles and presents the findings from a benchmarking process.

An MMP provides the internal portion of this data comparison, with detailed analytics and insights into a range of KPIs like app installs, user retention rates, average session length, average revenue per daily active user (ARPDAU), and more. In essence, Adjust provides the necessary tools and data-driven insights for informed decision-making, helping businesses to continuously improve their mobile app's performance in a competitive landscape.

To learn how to build an effective benchmark report with Adjust’s robust insights, request a demo.