Product performance benchmarks (also referred to as product benchmarks) are reference points used to compare your product with others. As with other areas of comparison, percentiles are often used to describe how well (or how poorly) your product performs on certain Key Performance Indicators (KPIs) relative to products of similar size and industry. Key Performance Indicators (KPIs) are critical indicators of progress towards an intended outcome. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision-making, and help focus attention on what matters most. Let’s take a look at why Benchmark is important in the Product Development Process.

For product comparison to be useful, there needs to be meaning behind the numbers. By comparing performance to industry standards, a company can better understand relative performance, including areas where they have a competitive advantage and areas for improvement. For example, how it performs against its peers, what approach competitors use to solve problems, and manufacturing methods are determined in order to form the basis for future improvements in the product. These determinations form the basis of new designs and developments.