ROI Benchmarking

Definition of ROI Benchmarking

Comparing the return on investment of a business activity against industry standards or competitors.

Explanation of ROI Benchmarking

ROI benchmarking involves comparing the return on investment (ROI) of a business’s initiatives or investments against industry standards or competitors. This process helps businesses understand their performance relative to others, identify areas for improvement, and set realistic goals. ROI benchmarking requires access to reliable data, such as industry reports, competitor analysis, and internal performance metrics. By comparing their ROI to benchmarks, businesses can identify best practices, optimize their strategies, and enhance overall performance. Effective ROI benchmarking requires continuous monitoring, robust data collection, and a focus on continuous improvement. By leveraging ROI benchmarking, companies can make data-driven decisions, improve efficiency, and achieve better financial outcomes.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.