Wednesday, April 24, 2019
Establishing Brand Metrics
Often, organizations will use awareness, preference, rank in consideration set, share of wallet, Net Promoter Score and other brand loyalty measures, customer satisfaction, distribution and market share as the primary brand measures. Awareness is important because without awareness, the brand does not exist in the customer's mind. Preference, rank in consideration set and share of wallet are also indications of brand strength, as are distribution and market share. Net Promoter Score is a very popular measure of attitudinal loyalty. Its strength lies in its ability to be compared across a huge number of brands across a wide variety of product and service categories. There are other measures of attitudinal and behavioral loyalty. Customer satisfaction is a particularly useful measure for categories in which satisfaction is low. Service organizations will want to measure multiple dimensions of perceived customer service. Organizations also sometimes measure brand perceptions related to the intended brand promise or unique value proposition and key brand messages. This can include perceptions of shared values, brand attributes, brand benefits (functional, emotional, experiential and self-expressive), brand personality attributes and other brand associations. And finally, various measures of emotional connection can be very insightful.
The trick in all of this is to choose metrics that correlate with intended customer business outcomes such as sales, profits, share of wallet, purchase frequency, loyalty and willingness to pay a price premium. The link between brand metrics and these outcomes can be arrived at through statistical correlation techniques. In the end, you want to measure things that actually matter and about which you can do something. It also helps if the measures are diagnostic so that you can identify what needs to be changed.
Marketing is often dismissed as too "touchy feely" with no direct links to ROI. The more a marketer can chose metrics that help him or her truly manage the brand, the more successful he or she will be. As Peter Drucker famously said, "If you can't measure it, you can't manage it."