Benchmarking analysis is a critical business analysis technique that enables companies to evaluate their performance, processes, and practices by comparing them with industry leaders and top-performing organisations. This method allows companies to identify gaps in their current operations, set goals for their desired future state, and develop a roadmap for improvement. Among various types of benchmarking analysis, functional benchmarking specifically focuses on comparing similar processes or functions across different companies and industries.
In this article, we will explore the application of functional benchmarking analysis to enhance a critical aspect of any business – the onboarding process – using a hypothetical example of a company named “ShopBright.”
We chose the onboarding process as our focal point because it is a common business area where organisations face challenges in their pursuit to engage and retain customers while ensuring a seamless and positive experience from the outset. Functional benchmarking analysis can identify areas where the onboarding process may fall short and provide insights into the best practices adopted by industry leaders. By comparing ShopBright’s onboarding process with those of top companies in the retail and e-commerce sectors, our goal is to pinpoint gaps in their current approach, define the desired future state, and devise a strategy for improvement.
Key advantages of functional benchmarking analysis include the following:
- Staying competitive: By comparing current business processes with industry leaders, organisations can maintain a competitive edge in the market by integrating innovative solutions.
- Embracing innovation: Functional benchmarking analysis assists organisations in identifying and adopting the latest technological innovations to enhance their processes, making them more efficient and effective.
- Streamlining decision-making: By recognising gaps and best practices, functional benchmarking analysis equips organisations with valuable insights that can streamline decision-making and prioritise areas for improvement.
Applying Functional Benchmarking Analysis to ShopBright’s Onboarding Process.
The following steps are critical in conducting functional benchmarking analysis.
- Define objectives: First, we need to set clear objectives for the analysis. In this case, our goal is to optimise ShopBright’s onboarding process to ensure a smooth and efficient customer experience.
- Identify benchmarking partners: We select leading companies in the retail and e-commerce industries, known for their excellence in customer onboarding processes, as benchmarking partners.
- Collect data: Gather information on the onboarding processes of the selected benchmarking partners, focusing on aspects like sign-up options, mobile verification, SSO integration, and other relevant factors.
- Analyse data: Compare ShopBright’s onboarding process with those of the benchmarking partners, identifying gaps and best practices.
- Identify opportunities for improvement: Based on the comparison, outline specific areas where ShopBright can enhance its onboarding process by adopting industry best practices.
Identifying Gaps and Defining the Desired Future State
After conducting the functional benchmarking analysis for ShopBright, we could identify several gaps in the current onboarding process:
- Limited sign-up options compared to industry leaders
- No mobile verification for new customers
- Absence of SSO integration with popular platforms
- Inconsistent presentation of terms and conditions and marketing preferences
Using these insights, we can define the desired future state for ShopBright’s onboarding process, incorporating best practices from industry leaders:
- Offer multiple sign-up options, including email, mobile number, and SSO
- Implement mobile verification through OTP for added security
- Integrate SSO with popular platforms like Google and Facebook
- Streamline the presentation of terms and conditions and marketing preferences for a consistent user experience
Conclusion
Functional benchmarking analysis serves as a highly effective and valuable tool in the realm of business analysis, offering organisations the ability to optimise their processes and maintain a competitive edge in the market. By adopting best practices and learning from top-performing organisations, businesses can unlock their full potential and consistently deliver exceptional experiences to their customers.
At TekStepp Solutions, we believe in empowering aspiring business analysts through our training programs centred on real-world projects inspired by actual success stories from industry giants like Salesforce, Microsoft, and Google Cloud Analytics. Our hands-on approach ensures you acquire the expertise necessary to excel in your professional journey.
Leave a Reply to urist_yfSn Cancel reply