What is the term benchmarking?

It is a tool which is primarily used for analysis of the performance. It is a very vital tool in performance analysis of the company, employee or even a competitor.Benchmarking is a process of measuring the performance of an organization or team through a variety of metrics—for example, customer satisfaction rate, sales and retention—for future comparison. Benchmarking can be used to compare internal performance and the external performance of competitors to measure if improvement has occurred.