Why do “over-standard” KPIs still lead to poor business results?

And how do data teams transition from “reporters” to true Trusted Advisors ?

In a world filled with “industry averages”, many businesses accidentally become followers – simply because of the desire to “equalize the market”.

The result? An illusion of control . But the profits… don't lie.

This week's newsletter breaks down five key perspectives to help you gauge your reality – not someone else's .

1️⃣ Why do benchmarks easily create illusions?

⤷ By industry : A Vietnamese shoe brand sells purely online, with prices twice as high as the market. But the 2.5% conversion rate of the apparel industry is used as a standard → unnecessary confusion.

⤷ According to history : Electronics supermarkets use AOV Black Friday as their yearly target → "nice" revenue plan but far from reality.

⤷ By platform : Shopify reports 70% cart abandonment. A cosmetics startup immediately optimized its funnel… forgetting that TikTok (mobile) always has a higher cart abandonment rate than desktop.

Message : Comparing snapshots without context = setting yourself up for failure.

2️⃣ 4 golden questions before "comparing the mirror"

→ What driver causes the index to fluctuate?

→ Where is the most skewed channel/device/segment?

→ Are there any seasonal or promotional factors?

→ How to contact AOV, LTV, CAC, Retention?

Case Maersk Flow : They don't compare delivery times with the entire logistics industry. They only look at the delta along the route and attach it directly to the customer's storage costs .

3️⃣ Signs you are "addicted to benchmarking"

• Weekly benchmark reporting → creates the illusion of control.

• Always try to "equalize the market" → only follow, no lead.

• Celebrate “exceeding standards” → forget to ask “Why?” and “What next?”

A Vietnamese retail chain was once happy because NPS = 50 (higher than FMCG APAC). But… 80% of the high scores came from the flagship HCM , while the provincial stores were still ≤ 20.

4️⃣ Internal baseline > Industry benchmark

• Cohort comparison (guests 03/2025 vs 04/2025)

• Segment by traffic source (SEO vs TikTok Ads)

• Track by SKU, stage (launch, Tet...)

• Prioritize trend delta , not snapshot

• Focus on driver metrics (Add-to-Cart), remove vanity metrics (Page View)

Starbucks Case : Drive-thru target < 3 minutes. They installed sensors on each shift → detected an increase in mobile orders between 7-9am → added a barista, split the brewing line → waiting time decreased by 30%.

5️⃣ When benchmarks still have value

• Investor Pitch : Prove you're not at the bottom of the industry

• Catch outlier : Conversion rate drops 0.3% = warning signal

• A/B suggestion : Inspired by industry standards, do not copy exactly

Conclusion

Benchmark is a tool, not a compass .

To become a Trusted Advisor , data teams need to build internal baselines – and stick to metrics that truly create value.

🚀 Next Steps

Want to practice Internal Baseline thinking and practice international standard KPI Tree?

The Business Intelligence course at MDA will help you connect all the pieces of data into breakthrough decisions .

👉 Explore the course now: https://mastering-da.com/business-intelligence-program/

💬 Have you ever encountered "beautiful" KPIs that exceed industry standards but business performance is out of sync?

Share your story below – or inbox us to dissect it!

Inspired by John Barnes

🔔+170,000 subscribers follow us on platforms: https://mastering-da.kit.com/ 📌Promoting Vietnamese businesses to make data-driven decisions through the Top 1 Analytics training program in Vietnam since 2020 @ Zalo: 0961 48 66 48 & https://mastering-da.com/business-intelligence-program/

#PhuongThaoAnalytics #AI #Analytics #DataDriven #MasteringDataAnalytics

Until next time, keep turning data into decisions!