Google Analytics 4 has introduced a benchmarking feature, enabling businesses to compare their performance against industry peers. While this functionality was previously available in the now defunct Universal Analytics, GA4 offers enhanced standardization through the use of reserved and recommended events, providing more accurate and reliable comparisons.
The process for enabling benchmarking in Google Analytics 4 is straightforward: just check the box labeled “Contribute to modeling” option in account settings to authorize Google to use your property’s data to feed the benchmarking model. In return, you gain a comprehensive overview of your position relative to competitors in terms of volume, conversions, and key behaviors.
It’s important to note that the quality of benchmarking results heavily depends on the participation of businesses & brands. The more data and the more consistent it is, the more meaningful the comparisons. Therefore, it’s crucial for businesses to accurately declare their industry, size, and correctly configure their conversion events.
The advantages of this new approach are manifold:
- Standardized measurements: Reserved and recommended events allow for comparison of similar metrics across different businesses, reducing bias caused by varying definitions.
- Focus on key events: By concentrating on industry-specific events (form submissions, purchases, bookings, games played, etc.), benchmarking provides more relevant insights for decision-makers.
- Competitive positioning: The ability to position oneself relative to the industry average allows for the identification of improvement opportunities and the setting of more ambitious goals.
However, certain limitations should be kept in mind:
- Dependence on declared data: The quality of results depends on the accuracy of information provided by businesses.
- Comparative nature: Benchmarking allows for performance comparisons but does not provide explanations for the reasons behind differences.
- Lack of in-depth competitive analysis: It’s not a tool for competitive intelligence but rather a means of obtaining a broader market overview.
In conclusion
GA4 benchmarking is a valuable tool for businesses seeking to assess their market position and identify areas for improvement. Nonetheless, it should be used judiciously and complemented by other analyses to make informed decisions.