Product Benchmarking: the Method to Create an Offer that Surpasses the Competition

Introduction: the Perfect Product Does not Exist. The most Competitive one Does.

You want to launch a new product.
Or improve an existing one.
But how do you know if it will truly be better than what the competition offers?
How can you avoid reinventing the wheel or offering a bland copy?

👉 The answer lies in two words: product benchmarking.

You can start with a competitive analysis

It is the strategic weapon for companies that want to innovate methodically, align their offering with market expectations, and create real, visible, and measurable differentiation.

🎯 Product benchmarking is not a comparison for copying. It is a structured process for surpassing.

1. What is Product Benchmarking?

It is an in-depth comparative analysis of a product against other competing or alternative solutions.
The objective is to:

• Understand how your offering is positioned
• Identify key differentiation points
• Detect innovation opportunities
• Prioritize product improvements
• Optimize your launch or repositioning strategy

📌 Benchmarking is not just about features. It also includes: user experience, customer perception, business models, associated services…

2. Why Conduct Product Benchmarking?

🔍 to Make Decisions Based on Market Reality

Many products are designed “internally,” without real-world confrontation. Benchmarking grounds you in reality.

🎯 to Define your Positioning

What is your unique angle? Are you faster, more comprehensive, simpler, more sustainable, more profitable?

💡 to Stimulate Innovation by Contrast

Identifying gaps, frustrations, or inconsistencies in competitor products opens up concrete avenues for you.

📣 to Refine your Marketing Pitch

Strong arguments arise from comparison. “We are the only ones who…” becomes credible if you have conducted the analysis.

3. What to Compare in a Product Benchmark?

✅ Features

• List of main features
• Advanced or differentiating features
• Level of customization

✅ User Experience

• Simplicity / flow of the user journey
• Design, ergonomics, accessibility
• Onboarding, ease of use, intuitiveness

✅ Business Model

• Pricing and fee structure
• Billing model (freemium, SaaS, license…)
• Included or paid services

✅ Social Proof

• Number of users
• Customer reviews (positive / negative)
• Use cases or testimonials

✅ Support and Ecosystem

• Customer support quality
• Documentation, tutorials, forums
• Integrations with other tools

✅ Brand Promise

• Explicit positioning
• Values, key message, differentiation angle
• Stated target audience

4. Which Competitors to Analyze?

Effective benchmarking relies on an intelligent selection of comparables. Three types to consider:

1. Direct Competitors

Offer the same type of product for the same target audience.
🎯 E.g.: Slack vs Microsoft Teams

2. Indirect Competitors

Address the same need with a different approach.
🎯 E.g.: Zoom vs Google Meet vs WhatsApp

3. Substitutes and Alternatives

Solutions cobbled together or repurposed by users.
🎯 E.g.: Trello vs Excel spreadsheet for project management

💡 Also include inspiring references from outside your sector: these are often the most disruptive.

5. How to Conduct Product Benchmarking Step-by-Step?

🔹 Step 1: Define your Objectives

Examples:

• Prepare for a launch
• Reposition an existing offering
• Identify short-term product priorities
• Inform your long-term roadmap

🔹 Step 2: Select Products to Compare

Choose a maximum of 5 to 7 well-targeted competitors that are representative of market diversity.

🔹 Step 3: Build your Analysis Grid

Structure the criteria according to the categories seen above. Use a spreadsheet or a visual tool.

🔹 Step 4: Experience it Yourself

• Create test accounts
• Simulate real use cases
• Recruit external testers if needed

🔹 Step 5: Interpret

• Where are you ahead? Where are you behind?
• What is your most credible differentiation lever?
• Which weaknesses do you need to address quickly?

6. Leveraging Benchmarking in your Strategy

🧭 Product:

• Adjust your roadmap
• Remove unnecessary features
• Create a more relevant MVP

🧲 Marketing:

• Clarify your promise (“we are the only ones who…”)
• Create SEO-friendly comparative content (“X vs Y”)
• Address sales objections

🚀 Go-to-Market:

• Define more competitive or consistent pricing
• Identify channels where your competitors are not present
• Better brief sales teams

7. Tools for Product Benchmarking

• Google Sheets / Airtable Spreadsheet: structure and collaborate
• G2, Capterra, AppSumo: read customer reviews and identify features perceived as differentiating
• Product Hunt, Crunchbase: identify new products or competitor funding rounds
• Hotjar / Maze / Useberry: test your UX against competitor user journeys
• Generative AI (e.g., ChatGPT): summarize customer reviews, extract strengths/weaknesses, analyze differentiators

8. Mistakes to Avoid in Product Benchmarking

❌ Benchmarking = copying.

Bad benchmarking = mimicry. Good benchmarking = differentiation.

❌ Limiting yourself to a “feature-only” view.

Experience, brand tone, and perception are also strategic.

❌ Ignoring the end customer.

What you deem “inferior” may be perceived as “simpler” by the user.

❌ Not updating your benchmark.

The market evolves quickly. Perform regular updates.

Conclusion: Benchmarking to Innovate Better (and Sell Better)

Product benchmarking is not an end-of-project report.
It is a strategic steering tool.

It allows you to create an offering that responds better, faster, and more intelligently to your customers’ expectations than all others.

🎯 Innovating is not about being different for the sake of being different. It’s about being better where it matters.

InnovFast

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