📊How do you calculate my ranking in the DTC Benchmarks?
Learn about how we evaluate your business using our benchmarks data
Last updated
Learn about how we evaluate your business using our benchmarks data
Last updated
This page is intended to help you understand how we use the Drivepoint Benchmarks™ dataset to evaluate your performance.
Drivepoint creates benchmarks using two distinct data sets:
Drivepoint community member brands
U.S. publicly traded consumer goods companies
Depending on the metric we are seeking to benchmark, we may use a combination of these two datasets or each dataset individually depending on what data is available. For instance, it's very easy to get data on a high-level financial metric like Gross Margin from both data sets, so we use a blended benchmark value for comparison. But granular performance metrics like 90D Gross Profit LTV for the DTC Channel aren't available at the public company level, so in this case we are only using data from our community brands.
Whenever possible, we try to use verticalized benchmarks to provide the best possible comparison.
To evaluate your position on each metric individually, we take the whole sample of data points for this metric and calculate your percentile rank. This is what's shown in the vs Drivepoint Benchmarks column in your vs. Drivepoint Benchmarks Scorecard. The Rating column is a simple, text-based summary display based on which quartile you fall into for the metric.
To arrive at your total score, we take the sum your percentile ranking on each key metric. This creates a composite score that allows you to compare your overall ranking vs. the companies in your comparison set. We like this methodology because it takes into account the reality that some companies will be quite strong on one dimension, but challenged in another. For instance, a fast-growing company may score off the charts on Gross Sales Growth but much lower on Net Income Margin, while a large incumbent may have a much higher Net Income Margin but much slower growth. Using our methodology, it's still possible to compare these companies using their composite score.
Percentile ranks for the composite score are calculated using the available public and private company data points within your selected vertical. The maximum possible composite score is 500 (5 x 100 in each of the 5 categories). However, in practice it's nearly impossible to achieve this score as it would require a single company to be the top performer across all five metrics. At time of this writing, the top performers in each vertical tend to cluster in the high 300's.
