By using Klaviyo’s benchmarking tool, you can compare your business and marketing performance to other companies similar to your own. These comparisons are shown via percentiles. In this article, you will learn what percentiles are to better comprehend your benchmarking data.
What Is a Percentile?
A percentile is a measurement of rank in relation to the whole group. In this instance, it’s your brand’s ranking in relation to others in your peer group. You should always strive to have a high percentile, but if you find yourself ranking lower than desired, it may be time to think about how to improve. For example, if you are in the 75th percentile, this means that your company ranked higher than 75% of companies that are most like your own. If you are in the 25th percentile you are ranked higher than 25% of those companies.
You will see percentile data listed within the Business Performance page of Benchmarks. Your own percentile data is in table form under Percentile. You can also compare this value to that of the 25th percentile and the 75th percentile.
In this example, the average cart size is listed as 1.11; thus, this company falls at the 4th percentile of their peer group. The average cart size of companies within the 25th percentile equals 1.29; whereas those in the 75th percentile have an average cart size of 1.81. You can use the median (50th percentile) and 75th percentiles of your peer group to set goals for improving your account performance.
Ultimately, percentile data gives you a better idea of where you rank across different areas of your business; thus, insight into where you can improve. Head to our documentation on KPI decrease troubleshooting or improving benchmark performance for inspiration on how to get into those higher percentile ranks and grow your business.