How can you benchmark intangible assets like customer satisfaction?

1 Choose a benchmarking method

When evaluating your intangible assets, you can choose from various benchmarking methods, depending on your purpose, scope, and data availability. Internal benchmarking involves comparing your own performance across different departments or processes within your organization. External benchmarking is when you compare your performance to other organizations in the same industry, market, or region. Functional benchmarking is comparing your performance with other organizations that have similar functions or processes, regardless of the industry or market. Lastly, best-in-class benchmarking involves comparing your performance with the best performers in any industry or market, regardless of the function or process. It is important to select a benchmarking method that is suitable for your objectives, resources, and data sources. For instance, if you wish to measure customer satisfaction across different channels, you might opt for internal benchmarking; if you want to measure customer satisfaction against your competitors, external benchmarking could be used; and if you desire to measure customer satisfaction against the best practices in any industry, best-in-class benchmarking could be a viable option.

2 Define the metrics and indicators

The next step is to define the metrics and indicators that you will use to measure and compare your intangible assets. Metrics are quantitative measures that reflect the performance or value of an intangible asset, such as customer retention rate, net promoter score, or brand awareness. Indicators are qualitative measures that provide insights or feedback on an intangible asset, such as customer reviews, testimonials, or surveys.

You should select metrics and indicators that are relevant, reliable, and valid for your intangible asset. For example, if you want to measure customer satisfaction, you might use metrics such as customer loyalty, repeat purchases, referrals, or complaints. You might also use indicators such as customer satisfaction surveys, ratings, or comments. You should also ensure that the metrics and indicators are consistent and comparable across the different entities or periods that you are benchmarking.

4 Implement and monitor the improvements

The final step is to implement and monitor the improvements that you have identified from your benchmarking analysis. You should use the benchmarking results to set realistic and specific goals, strategies, and actions for your intangible asset improvement. You should also assign roles and responsibilities, allocate resources, and establish timelines for your improvement plan.

You should also monitor and evaluate the progress and impact of your improvement plan on your intangible asset performance. You should use the same metrics and indicators that you used for benchmarking to track and measure the changes and outcomes. You should also collect feedback and suggestions from your stakeholders, such as customers, employees, or partners, to identify the strengths and weaknesses of your improvement plan. You should also review and update your benchmarking process and data regularly to ensure that they are relevant and current for your intangible asset improvement.