Pouring efforts into online promotion only to watch competitors surge ahead? Competitive benchmarking might be the missing piece. It’s one of the most powerful but often overlooked ways ecommerce brands can uncover strategic insights, identify opportunities, and make smarter marketing decisions.
Below, we explore what competitive benchmarking really means, why it matters, and a simple five-step process you can follow today.
What Is Competitive Benchmarking?
Competitive benchmarking is the systematic process of measuring your company’s performance, marketing activity, and customer experience against that of your competitors or your broader industry.
Benchmarking typically uses quantifiable metrics such as:
- Conversion rates
- Bounce rates
- Average order value (AOV)
- Customer lifetime value (CLV)
- Customer acquisition cost (CAC)
- Revenue
- Search rankings
- Customer ratings and reviews
However, modern benchmarking extends far beyond performance metrics. It also includes analysing competitor strategies, marketing campaigns, email frequency, product pricing, landing pages, and overall customer experience.
By comparing yourself to industry standards or category leaders, you gain clarity on where you stand and where you can improve.
6 Key Benefits of Competitive Benchmarking in E-Commerce
Benchmarking isn’t just about watching competitors. It’s about using structured insights to sharpen strategy and accelerate growth. Here’s what makes it so valuable.
1. Adapt Quickly to Market Trends
Benchmarking gives you visibility into emerging consumer behaviours, popular marketing tactics, new technologies, and market shifts. This foresight helps you stay agile, spot opportunities early, and avoid falling behind.
2. Understand Your True Market Position
Benchmarking reveals your strengths and weaknesses relative to competitors by comparing real performance data, including traffic, conversion rates, engagement, pricing, and product assortment. This clarity helps shape your next strategic moves.
3. Create More Effective Campaigns
Studying competitors’ creative angles, messaging, offers, and channels can spark fresh ideas and inspire more compelling marketing campaigns.
4. Track Competitors Consistently
Competitive benchmarking gives a structured system for monitoring your rivals over time, not just in sporadic bursts. This leads to a clear understanding of long-term changes in their strategy.
5. Boost Sales and Revenue
Benchmarking highlights product gaps, missed opportunities, and pricing discrepancies. By adjusting your offers accordingly, you can increase conversions and revenue.
6. Avoid Falling Behind
E-commerce changes fast. Benchmarking ensures you’re aware of competitor innovations (from new product categories to tools like AR try-ons) and helps you evaluate whether you should adopt similar approaches.
How To Select The Right Competitors To Benchmark
Benchmarking is only as effective as the competitors you choose.
Here’s how to curate a meaningful list.
1. Start with Direct Competitors
These brands target the same audience with similar products and positioning. They reflect your most immediate threat.
2. Include Aspirational Competitors
These are slightly larger or more established companies you aim to emulate. They help you understand what “great” looks like.
3. Look at Indirect Competitors
These brands may not sell the same product but compete for the same budget or customer needs.
4. Consider Data Accessibility
Choose competitors whose data is realistically accessible through public metrics, social visibility, traffic insights, or the use of benchmarking tools.
How To Conduct Competitive Benchmarking: 5-Step Process
Ready to get started? Here’s your simplified five-step roadmap.
Step 1: Define Your Goals and Objectives
Before comparing anything, decide what you want to achieve.
Common benchmarking goals include:
- Increasing newsletter signups
- Improving website performance
- Enhancing email deliverability
- Optimising product pricing
- Identifying new ad angles
- Increasing sales or retention
Clear goals shape the metrics you’ll track and the competitors you’ll monitor.
Step 2: List Your Competitors
Create a list that includes:
- Direct competitors (same products, same audience)
- Aspirational competitors (market leaders you want to reach)
- Emerging competitors (new players showing rapid growth)
- Indirect competitors (brands competing for similar customer needs)
This ensures a well-rounded view of your competitive landscape.
Step 3: Choose Your Metrics
Your metrics must align with your goals.
Common e-commerce benchmarking categories include:
Traffic & SEO Metrics
- Total website traffic
- Organic traffic
- Keyword rankings
- Market share of traffic
Social Media Metrics
- Followers and growth rate
- Engagement rate
- Posting frequency
Advertising Benchmarks
- Ad volume and frequency
- Ad formats (image, video, carousel)
- Creative angles
- Unique selling propositions
Email Benchmarks
- Email frequency
- Email types (promo, newsletters, product launches)
- Spam score
- Deliverability
- Subject line patterns
Product & Pricing Metrics
- Average price
- Total SKUs
- Product categories
- Types of offers and discounts
Landing Pages & Funnels
- Messaging
- Layout
- Offer clarity
- Load speed
- Technology Stack
- E-commerce platform
- Email provider
- CRO tools
- Analytics software
The more holistic your metrics, the deeper your insights.
Step 4: Choose Your Benchmarking Tools & Gather Data
Competitor data isn’t always easy to collect manually. This is where tools come in.
Ways to gather competitor data:
- Visit their website to trigger retargeting ads
- Browse ad libraries (Meta, Google, TikTok)
- Use SEO tools like Semrush or Ahrefs
- Manually review public content (emails, socials, websites)
- Use comprehensive competitor benchmarking platforms like Panoramata
Tools help centralise data, reduce manual labour, and provide up-to-date insights.
Step 5: Analyse Results & Implement Insights
Once you’ve collected data:
- Compare your metrics against competitors
- Identify gaps
- Spot opportunities
- Document insights
- Turn findings into an actionable strategy
Remember: Benchmarking is not a one-time activity. Update your data regularly and continue optimising based on new trends and competitor behaviour.
Key Metrics To Watch In Competitor Benchmarking (And What They Reveal)
Below are critical categories to analyse, along with what to look for.
1. Ads, Ad Volume & Active Ad Networks
What to examine:
- Ad frequency
- Creative types (video, UGC, static images)
- Targeting signals
- Platforms used (Meta, Google, TikTok, Pinterest)
These insights reveal competitor marketing budgets, creative strategy, and offer positioning.
2. Email Marketing Activity
Analyse:
- How often emails are sent
- Types of emails sent
- Email copy, design, CTAs
- Subject line patterns
- Spam score
This helps you understand customer nurturing strategies and identify messaging gaps.
3. Creative Angles & Brand Voice
Look for:
- Colours, tone, voice consistency
- Value propositions
- Key themes and emotional triggers
- Offer positioning
This level of analysis helps you refine your own creative identity.
4. SEO Profile & Organic Social Growth
Track:
- Long-term keyword trends
- Backlink growth
- Domain authority
- Social engagement
SEO and social require time-based benchmarking for meaningful insights.
5. Pricing & Offers
Review:
- Average pricing
- Product bundles
- Discount frequency
- Seasonal promotions
- Product gaps
This helps refine your pricing strategy and identify untapped opportunities.
Common Competitor Benchmarking Mistakes To Avoid
Mistake 1: Comparing Against the Wrong Competitors
Comparing a startup to a massive global brand leads to unrealistic benchmarks. Choose competitors that closely match your stage and capabilities.
Mistake 2: Using Outdated Data
The e-commerce landscape changes fast. Make sure your data is updated regularly, not quarterly.
Mistake 3: Obsessing Over Numbers Without Context
Metrics alone don’t tell the whole story. Combine quantitative analysis with qualitative insights: Example: customer sentiment, positioning, and brand perception.
Getting Started with E-Commerce Competitive Benchmarking
Competitive benchmarking isn’t optional anymore. It’s essential to stay relevant, maximise performance, and make confident marketing decisions.
With the right competitors, metrics, and tools, you can:
- Discover hidden opportunities
- Strengthen your strategy
- Improve your marketing execution
- Differentiate your brand
- Drive more sales
The goal isn’t to copy competitors. It’s to learn from them, adapt faster, and carve out your own strategic advantage.
Need a fresh perspective? Let’s talk.
At 360 OM, we specialise in helping businesses take their marketing efforts to the next level. Our team stays on top of industry trends, uses data-informed decisions to maximise your ROI, and provides full transparency through comprehensive reports.
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