Benefits strategy built on data outperforms guesswork every time. But too many consultants either don't use benchmarking effectively—or make mistakes that undermine their recommendations.
This guide covers how to use benchmarking to win new business, drive better renewals, and avoid the common pitfalls that trip up even experienced consultants.
Why Benchmarking Beats Guesswork
In a world where benefits strategy can make or break talent retention, making decisions based on instinct doesn't cut it. Too often, employers "go with what feels right"—only to find they've either overextended their budget or missed the mark on employee expectations.
Good benchmarking replaces guesswork with clarity. It lets you compare plans to real-world norms—across industry, company size, and region—and understand how choices stack up.
With benchmarking, you can:
- Justify increases or savings in premiums with market data
- Benchmark employer contribution strategies against peers
- Compare deductibles, copays, and coinsurance with competitors
- De-risk decisions with third-party validation
Done right, benchmarking doesn't just inform decisions—it de-risks them. And it positions you as the advisor with answers, not just opinions.
Understanding Plan Scores
Every benchmarked plan receives a 0–100 score that summarizes how it compares to the market. But here's the key insight most consultants miss:
50 is the target, not 100.
A score of 50 means the plan matches the market median—perfectly balanced with what similar employers offer. Scores above 75 aren't automatically better; they indicate richer benefits that may or may not align with the employer's strategy.
The right question isn't "How high is the score?" but "Is this score aligned with the employer's goals?" A score of 35 might be exactly right for a cost-conscious employer. A score of 80 might be intentional for a company competing aggressively for talent—or it might signal over-investment.
Using Benchmarking to Win New Business
Benchmarking isn't just a retention tool—it's a prospecting superpower.
When you walk into a pitch with benchmarks in hand, you're not guessing. You're already demonstrating that:
You understand their market
You've analyzed their current offering
You're ready to compare, not just suggest
The Bottom Line
Consultants who use data early show up as advisors, not vendors. Independent benchmarking gives you a credible third-party source, fast filtering by industry/size/region, and a concrete way to highlight gaps or opportunities.
How Top Consultants Use Benchmarks to Drive Renewals
Renewal meetings can be tense. Premiums go up. Budgets get tight. Stakeholders get skeptical.
But when you walk in with market data, you change the dynamic. You can:
- Show that the renewal increase is in line (or out of line) with peer trends
- Validate the competitiveness of each plan feature with data
- Provide decision-makers with context—not just numbers
The Renewal Narrative Framework
Top consultants don't just use benchmarking—they build renewal narratives around it:
This approach builds trust because you're leading with evidence, not opinion. The client can see exactly how they compare—and your recommendations flow naturally from the data.
3 Mistakes Consultants Make with Benchmark Data
Benchmarking can be powerful—or misleading—depending on how you use it. Even experienced consultants fall into these traps:
1. Treating Robust as Always Better
A score of 85 isn't automatically better than 50. It means the plan is richer than 85% of comparable employers—which could signal premium positioning or over-investment. Not every employer needs to be in the Robust range.
Do this instead: Frame Balanced (25-74) as the sustainable target for most employers. Reserve Robust positioning for clients who are intentionally competing on benefits—and help them understand the cost tradeoff.
2. Forgetting to Filter
Context matters. Pulling unfiltered "national" data may look impressive, but it's rarely useful. Comparing a 50-person manufacturer in Ohio to nationwide averages that include Bay Area tech companies isn't helpful.
Do this instead: Always adjust filters to reflect your client's true competitive landscape—same industry, similar size, relevant geography. The more specific, the more useful.
3. Ignoring the Outliers
The overall score tells you where the plan lands. The outliers tell you why. Top Performers (75th percentile+) and Under Performers (below 25th) are where the real conversations happen.
Do this instead: Always dig into outliers. They're your best talking points: "You're over-investing in X, could we reallocate to address the gap in Y?" or "Your deductibles are Top Performers—let's make sure employees know that."
Why Independent Data Matters
Not all benchmark data is created equal. Here's why source matters:
❌ Broker Book-of-Business Averages
- • Limited to one firm's client base
- • Often outdated or incomplete
- • Can't filter by industry or size
- • Reflects what one brokerage sells, not the market
✓ Independent Benchmark Data
- • Direct from plan sponsors and advisors
- • Filterable by industry, size, region
- • No carrier or broker bias
- • Credible third-party source for recommendations
When you present data to a CFO or HR leader, they'll ask where it came from. "Our internal averages" doesn't carry the same weight as independent market data from validated employer plans. Independent benchmarking builds credibility because it's objective—you're not just selling your own book.
Data Builds Trust
Benchmarking isn't just about having numbers—it's about having independent, current, and credible data.
What credible benchmarking data does:
See Benchmarking in Action
Get a sample benchmark report and see exactly how top consultants use data to win business and drive renewals.