Understanding Benchmark Comparisons for Smaller Organizations

Direct comparisons to benchmark averages don't always provide an accurate reflection of your performance. This article explains why this happens and provides guidance on how to make the most meaningful use of benchmark data.

The Size Discrepancy Challenge

While there are generally more organizations of your size in the benchmark than any other size category, there is still significant variation between the largest and smallest organizations in the group.

In this example, the largest organizations have annual ticketed income 10x larger than the smallest. This illustration is not uncommon for the data that we see in the benchmark groups.

How to Interpret Benchmark Data Effectively

1. Focus on Trajectories, Not Direct Comparisons

What to avoid: When viewing charts that show your data (orange) alongside benchmark averages (blue), remember that lower absolute values don't indicate poor performance—they simply reflect your organization's smaller size.

What to do instead: Pay attention to the relative trajectories of your data compared to the benchmark group. Look for diverging patterns that might indicate meaningful differences in performance trends.

2. Utilize the Typology Dashboard

The Typology Dashboard shows the proportion of your audience in different frequency and recency-based segments. This is particularly valuable because:

• It compares proportions rather than absolute figures
• It isn't skewed by your organization's size relative to the benchmark
• It gives a clear picture of loyalty patterns at your organization

3. Understand Dual-Axis Charts

When your data and benchmark data appear on the same chart, they are often plotted on separate axes. This design allows for easier side-by-side comparisons between organizations of significantly different sizes.