Bridging the gaps for business; It is an area of research that has been found to fit into the business development strategy planning process very well. At Udjat Agency, we know that using the concept presented above can help improve businesses performance. The concept of gap analysis is important; because it enables businesses to compare its present state with the desire state, in order to determine the necessary steps of actions for change. In this post, we will explain what the gap analysis is, the stages involved in conducting gap analysis and a case example.
What is Gap Analysis?
A method to measure the gap between the present performance of an organisation and its desired performance is known as gap analysis. This technique is useful to find out where adjustments are required to optimise an endeavor for a certain purpose. The primary goal of gap analysis is to raise awareness of differences and define the approaches to minimise them. In so doing businesses can up their levels of efficiency and effectiveness.
Stages of Gap Analysis
1. Current State Assessment
The first process in gap analysis is a comparison of the status of the organization or the process under analysis. This assessment involves the collection of performance data, as well as an assessment of current resources and resources in development. It is always advantageous for an organization to have a picture of their current state. In this phase, the common activities are data gathering, performance reviews, and businesses diagnosis.
2. Desired State Definition
The second is to identify the goal state as soon as the current state is agreed upon and well understood. This means to establish special objectives, which must be consistent with organizational strategies. In this phase, businesses need to develop goals, which makes it easy to measure progress toward success.
3. Identifying the Gap.
The last step is to model the gaps between the current position and the strategic position for the businesses. This comparison will help organizations identify needs for improvement. Such gap knowledge is useful in the prioritization of interventions and in the distribution of resources.
Applying Gap Analysis:
Suppose there’s an actual e-commerce business named “XYZ Store.” XYZ store’s objective is to enhance the internet revenue while the customers’ satisfaction is also enhanced.
In assessing its current state, XYZ Store discovers:
The percentage of online sales is 50 percent of the total sales.
In the surveys, the average score yields 3.8 for customer satisfaction rating.
The website conversion rate is low and currently at 2% below par with most industries.
Desired State
For its desired state, XYZ Store sets clear objectives:
Achieve $70000 of online sales or 70% within one year.
Increase the value of customer satisfaction index to at least 4.5.
Increase the website’s conversion rate to 4%.
Identifying the Gap
By comparing the current state with the desired state, XYZ Store identifies several gaps:
An increase in online sales by a percentage point of 20 percent.
Satisfaction needs to rise by 0.7 point for the customer needs’ satisfaction.
The website conversion rate needs to be raised by 2%.
The evaluation of XYZ Store in this context allows understanding what needs to be changed.
It is essential here to note that there are methods and techniques for closing the gap.
Strategies for Bridging the Gap
High level gaps can be discerned from the current situation, and XYZ Store can then create concrete plans to realize its objectives. Here are some potential actions:
Enhancing Online Presence:
Promoting SEO and other online marketing as well as advertising solutions can increase web traffic flow and therefore online sales.
Improving Customer Experience:
Both corrective and enhancement strategies show that the amplification of customer feedback tendencies and the improvement of support services can contribute to higher satisfaction rates.
Website Optimization:
Improving the site’s appearance and functionality for easier usability and quicker download times can always yield big results in terms of conversion.
Inventory Management:
Efficiencies mean that slow-moving products are not leaving stores depleted because such inventory becomes quickly available.
These strategies explain to XYZ Store how each of the above gaps can be addressed systematically.
Conclusion
Gap analysis is an essential tool for organizations looking to improve their performance and reach strategic goals. By assessing the current state, defining the desired state, and identifying gaps, businesses can develop actionable strategies to bridge those discrepancies effectively.
At Udjat Agency, we recognize the value of gap analysis in driving business success. We encourage businesses to adopt this methodology as part of their strategic planning process. If you’re interested in learning more about how gap analysis can benefit your business, feel free to reach out to us for assistance. Together, we can work towards bridging those gaps and achieving your goals.
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