A peer group is a collection of companies similar to yours in terms of industry, niche, or size. Grouping companies with similar marketing metrics simplifies competitive performance comparison and helps you set new benchmarks, identify industry trends, determine market gaps, and find your unique value proposition.
How are companies sorted into peer groups?
Apart from the industry and size, peer groups are determined by considering the following metrics:
- Average item value: Comparing different products’ average monetary worth can help you reevaluate your pricing strategy and align your prices to the target market.
- Total revenue: Total revenue within a specified range can offer numerous insights into the success of the strategies in use. When comparing your revenue to your peers, you can study the changes that occurred and contributed to positive or negative outcomes.
- Year-over-year growth rate: This metric shows a business’ financial growth over two comparable periods, and it’s valuable for determining peak and low-value seasons among you and your competitors.
- Percent of days with a campaign: Calculating the total percentage of days businesses ran a campaign in a given timeframe helps set new benchmarks and reevaluate current processes.
- Email revenue percentage: The average revenue generated from email should be 25–35%. Comparing your results to those of your competitors helps you determine whether there’s room for improvement in your email marketing strategy.
How to use peer group data to improve your marketing strategy
1. Choose a marketing platform
Use a marketing platform with analytical features that give you insights into the competitive landscape. Make sure the platform can visualize data derived from key performance indicators (KPIs) such as:
- Click rate
- Return on investment
- Cost-per click
- Customer acquisition cost
- Conversion rate
2. Compare KPIs
Comparing your KPIs to those of your competitors helps you identify any underlying problems. Set clear business goals and single out all relevant KPIs that can help you achieve them. Once you have concrete numbers, analyze where your competitors stand. Take into account the same metrics and pull data on their products, prices, and marketing strategies.
Comparing KPIs will give you a better idea of your position in the market so you can take specific measures to gain an advantage.
3. Set benchmarks
Identify common trends and patterns against your competitors and determine areas for improvement. Support your analysis using KPIs and set new benchmarks to establish a clear target and a measurable outcome.
Ready to set new benchmarks for your marketing strategy? Sign up for Klaviyo and receive fresh comparisons across 100 peers tailored to your business. Set benchmarks for detailed performance analysis and measure your business health based on industry trends and Klaviyo best practices. Update your email and SMS marketing initiatives through reporting features:
- Visualize all marketing and sales performance and identify gaps.
- Create custom schedules and automate data reports for transparency.
- Use pre-built report templates to uncover trends and increase revenue.