Benchmarking

Introduction

What is it?

Are users having a better experience on your app than on your competitor’s? Benchmarking analysis helps you find out by comparing your product’s user experience to others in the industry. The goal is to gather clear, actionable insights—what’s working, what’s not—so your team can enhance the product and create a better user experience.

Examples

Competitive Analysis
Comparing the app’s sign-up process with that of a market leader like Spotify, teams assess how onboarding length influences user drop-off, identifying areas for improvement.
Redesign Validation
Testing a redesigned dashboard against the previous version, UX researchers evaluate improvements in task success and error rates, confirming design effectiveness.
KPI Tracking
Teams track changes in UX performance by monitoring metrics such as task success rate, user satisfaction, and error rates over time.
E-commerce Benchmarking
Benchmarking the checkout flow against Amazon’s, product teams identify gaps in speed, error rate, and user satisfaction, uncovering opportunities for optimisation.

Why do it?

Benchmarking transforms assumptions into data-backed decisions. Here’s why it matters:

Data-Driven Decisions
Benchmarking provides objective data to inform design decisions. Teams can assess new designs against previous versions or competitors to measure improvement.
Product Positioning
Understanding how your product compares in the market reveals its strengths and weaknesses. Benchmarking helps identify standout features—or gaps—compared to competitors, so you can refine your value proposition.
Workflow Improvements
Learning from others’ successes and mistakes can streamline your UX processes. For example, a shorter competitor onboarding flow may offer insights on simplifying your own.
Stakeholder Buy-In & ROI
With concrete before-and-after metrics, benchmarking speaks the language of business. It helps secure support for UX investments by demonstrating ROI.
Better User Experience
Ultimately, benchmarking leads to a more refined product. Continuous improvements boost user satisfaction, loyalty, and long-term success.

Resource

Benchmarking Template

We created a CBTW Benchmarking template in Figjam. You can use this as a basis for your next Benchmarking analysis.

Link to Benchmarking Template

Step by Step Guide

1. Define Goals 2. Choose Benchmark 3. Collect Data 4. Analyse

Step 01

Define Goals

Start by identifying what you want to evaluate. Focus on specific areas of the user experience, such as onboarding completion or checkout time, and set KPI like task success rate or conversion rate.

Step 02

Choose Benchmark

Choose what to benchmark against by opting for a meaningful, relevant benchmark. For example, narrowing your focus to “account signup process of our app vs. Competitor X” enables more targeted, actionable insights without unnecessary complexity.

Decide whether you are comparing:

Against an earlier product version (internal benchmarking)
Against competitors or industry leaders (external benchmarking)

You may also benchmark across different user segments or devices to uncover specific patterns.

Narrow your scope to 3–5 key user journeys or metrics. Frame clear questions (e.g., Is our sign-up process faster than Competitor X’s?) to stay focused and make meaningful comparisons.

Step 03

Collect Data

Use a competitive analysis matrix to gather both quantitative (e.g., conversion rates) and qualitative (e.g., user observations) data. Perform tasks yourself on competitor products—like signing up or checking out—and document your findings systematically.

resource

Competitive Analysis Template

Use tools like spreadsheets for structure, and speed up data collection with technology—just make sure to validate important details manually. Tools like Dovetail can help.

This template can help you structure your research.

Download Template

Step 04

Analyse and report

Compare your collected data side by side to identify patterns. Visualise differences, such as using a rating system for usability across user flows. Look for areas where your product excels or falls short, asking why these differences exist. Use frameworks like SWOT analysis to summarise findings and highlight strengths and opportunities for improvement.

In your report, prioritise improvements that impact the user journey or business goals.