How Industry Classification Enhances Competitive Benchmarking

Competitive benchmarking only works when you compare like with like. Verified SIC and NAICS classification creates true peer groups so performance, market share, and growth metrics reflect real competitive position—not mismatched categories or free-text labels.

Why classification accuracy matters

True peers: Standardized codes ensure competitors operate within the same industry scope and value chain.
Clean trendlines: Consistent grouping enables year-over-year comparisons without category drift.
Comparable KPIs: Cohort-based metrics (conversion, CAC, churn, margins) are meaningful when cohorts are verified.

Confirm definitions via the SIC Code Lookup / Directory and the NAICS Code Lookup / Directory.

How to build peer cohorts with SIC & NAICS

Select the canonical code(s) for your industry using published structures (see Structure of NAICS Codes).
Define cohort rules (code ± adjacent codes, region, company size band).
Append/verify codes for your targets and competitors using verified data (see About Our Business Data).
Normalize entities (parent/child, mergers) to avoid double counting.
Calculate metrics consistently by cohort and publish a benchmark pack.

Benchmark metrics that benefit from standardized cohorts

Market share
Company revenue ÷ total cohort revenue (same code, region, size)

Growth rate
YoY revenue or unit growth by code-based peer set

Unit economics
CAC, payback, gross margin by verified industry

Sales efficiency
Win rate, ASP, cycle length within the same industry code

Example: simple market share table

Company	NAICS Code	Region	Revenue	Share
Alpha Inc.	333999	US	$120M	32%
Beta LLC	333999	US	$95M	25%
Gamma Co.	333999	US	$160M	43%

Populate cohorts using verified listings and volumes from Business List By NAICS Code.

Practical tips for reliable comparisons

Lock the code version: Pin the structure used (e.g., NAICS 2022) and note it in your footnotes.
Document inclusions/exclusions: State which adjacent codes or sub-segments were merged.
Use parent roll-ups: Combine subsidiaries to reflect true competitive presence.
Refresh quarterly: Re-verify codes and re-sample the cohort to catch M&A and pivots.

About SICCODE.com

SICCODE.com provides verified industry classification and company listings that make benchmarking accurate, repeatable, and defensible. Standardized SIC and NAICS cohorts help teams understand real market position, not just estimates.