Navigating growth as a midsize business can feel like crossing into unknown territory. The market is competitive, and understanding where your business stands compared to industry standards is crucial – this is where benchmark reports come in.
Benchmark reports provide invaluable insights into your performance metrics, helping you identify strengths, weaknesses, and opportunities for improvement.
For owners of midsize businesses, particularly those using HubSpot, benchmark reports are essential tools. They clearly show how your business measures up against industry peers, enabling you to make informed decisions and drive growth.
Let’s explore how to read and interpret benchmark reports in HubSpot. We’ll cover the types of benchmarks relevant to your industry, how to access these benchmarks, and the importance of participating in surveys to contribute to this invaluable data pool.
Did you know?
At Evenbound, we’ve partnered with Databox to build a benchmark group tailored to small and midsize B2B companies using HubSpot. The group represents nearly 400 companies with at least 50 employees and over $1M in annual revenues.
Companies can anonymously join the benchmark group for free. This ensures that marketing and business leaders can protect their proprietary data while finding a no-cost way to gain insights amongst peer organizations of similar size and structure.
How to Read & Understand Benchmark Charts in HubSpot
The Basics of Benchmark Charts Benchmark charts are visual tools that compare your business metrics against industry standards or competitors' performance.
The chart below depicts how many new leads midsize businesses generated within their HubSpot portals in the previous month.
Some key takeaways include:
- The bottom 25% of companies had under 28 new leads during the previous month.
- The top 25% of companies had 655 or more new leads the previous month.
- The Median (or middle 50%) of companies clocked 135 new leads.
These charts typically display benchmark data points such as revenue, customer acquisition cost (CAC), churn rates, and other key performance indicators (KPIs).
Note: The charts in Databox’s benchmark groups are dynamically populated and intuitive.
Identifying Key Metrics
First, identify the key metrics that matter most to your business. For example, if you're in the SaaS industry, metrics like monthly recurring revenue (MRR) and customer lifetime value (CLTV) are crucial. Benchmark reports will often highlight these metrics, allowing you to compare your performance with industry averages.
Interpreting Benchmark Data Points
Focus on the benchmark data points that fall above or below the industry average. If your customer acquisition cost is higher than the benchmark, it may indicate inefficiencies in your marketing strategies. Conversely, if your churn rate is lower than the industry’s average, it signifies strong customer retention.
Understanding these nuances helps you pinpoint areas where you’re both lacking or excelling.
Using our examples from above, if you plotted your HubSpot data in with the rest of the group, you’d be able to determine where your business’ lead health lies among other midsize businesses. Do you see 135 new leads per month? If yes, you are right on average.
What if you see 20 leads each month? That would mean that you fall below the 25% quartile and might need to take a deeper look at your lead generation approach.
Types of Benchmarks for Your Industry/Ideal Customer Profile
Financial Benchmarks
Financial benchmarks, including revenue growth, profit margins, and expenditure, are critical for assessing your business's financial health. Comparing these metrics with industry standards helps you understand if your business is financially sustainable and competitive.
Customer Metrics
Customer-related benchmarks, such as customer satisfaction scores, Net Promoter Scores (NPS), and churn rates, provide insights into how well you're meeting customer expectations. High NPS and low churn rates indicate strong customer loyalty, which is vital for sustained growth.
Operational Benchmarks Operational benchmarks focus on internal processes and efficiencies. Metrics like average response time, order fulfillment rates, and operational costs fall into this category. By comparing these metrics, you can identify bottlenecks and streamline operations for better efficiency.
Benchmark Access for Your Industry/Ideal Customer Profile
Tap Into Databox’s Benchmarking Tools
As we said earlier, you can join our Databox benchmark group for free to compare your organization against other midsize businesses that use HubSpot CRM.
You might even find other benchmark groups to compare data from other channels, such as Google Ads, LinkedIn, and Google Search Console.
HubSpot Has Great Benchmarking Tools, Too
For businesses using HubSpot, the platform offers various benchmarking tools that provide industry-specific insights. These tools aggregate data from thousands of companies, giving you a comprehensive view of where you stand in your industry.
Custom Benchmark Surveys
Participating in custom benchmark surveys tailored to your industry can provide more specific insights. These surveys typically collect data from businesses like yours, offering a more accurate comparison.
How Surveys Help Contribute to Benchmark’s Data
Contribute to the Data Pool
Benchmark reports rely on data from businesses like yours. By participating in our surveys, you contribute to a broader data pool, helping create more accurate and relevant benchmarks. Your participation not only benefits your business but also the industry as a whole.
Gain Exclusive Insights
Survey participants often receive exclusive insights and detailed reports, providing a deeper understanding of industry trends and performance standards. These insights can be instrumental in shaping your business strategies.
Foster a Collaborative Community
Engaging in benchmark surveys fosters a sense of community among midsize businesses. It allows you to connect with peers, share experiences, and learn from each other's successes and challenges.
For example, if you were to take this survey, you could help contribute to industry insights surrounding changes in B2B marketing and how organizations are expected to deliver results. Our survey has found (so far!) that 55% of organization marketing teams are expected to achieve the same or MORE results with fewer resources available.
With greater community participation in surveys, we can create stronger correlations and stories with the data.
Are You Ready to Unlock Growth and Elevate Your Business?
Benchmark reports are powerful tools that can transform how midsize businesses operate and grow. By understanding how to read and interpret these reports, identifying key benchmarks for your industry, accessing relevant data, and participating in surveys, you position your business for sustained success.
Remember, benchmarking is not just about identifying where you stand—it's about using that knowledge to drive continuous improvement. Take the first step today by exploring benchmark report examples and learning how to create a benchmark report tailored to your business needs.
If you're ready to take your business to the next level, consider joining our community and participating in our surveys. Together, we can build a stronger, more competitive industry.
By following these guidelines and leveraging the insights from benchmark reports, your midsize business can achieve new heights of success. Keep benchmarking, keep improving, and watch your business thrive.
