Brand performance that is measured is well-managed. A business’ brand is the most valuable asset of every business. After getting established, it’s a must for every business to adopt measuring brand performance. Done successfully, it only puts your brand in a higher position in the market.
Evaluating the performance of brands makes branding processes a lot more powerful and more controllable. It enhances brand effectiveness and brand personality, and contributes to the expansion of the customer base.
It’s not an uncommon occurrence to see some big and well-managed brands still opting to measure too many metrics that are hardly relevant. They also end up not putting emphasis on the ones that matter.
For instance, measuring engagement levels on social media platforms through likes and shares, or the popularity of a video doesn’t mean much from a business perspective. Unless of course, you can determine to what extent these metrics can positively affect revenue.
Measuring brand performance is not about looking at the number of likes or the amount of organic traffic filtering into your website.
According to experts (like Brand Master Academy), it’s all about understanding the process of how clients, customers, viewers, and/or financial supporters make purchasing decisions in your category. Part of it is also determining the process in which you can increase your chances of being selected as their prime brand of choice.
Let’s take a look at 5 quantitative KPIs involved in measuring brand performance through each stage of the customer’s decision-making process.
The question: Do your potential customers remember your brand?
To measure this (particularly top of mind brand awareness and spontaneous brand awareness), you must use unprompted questions.
For instance, when you think of buying a smartphone, does a particular brand come to mind? And for prompted awareness, present your respondent with a list of brands and ask them which ones they’ve heard of.
The question: Is your brand on their mind when they are in buying-related situations? Do they easily recognize your brand?
The KPIs to mind in this stage are brand salience and the strength of your distinctive brand assets.
A less popular metric and also more complicated to measure is brand salience. But it is increasing in significance though. Brand salience, as defined by the experts, is “the propensity of the brand to be thought of by buyers in buying situations”.
You can measure it by providing respondents with a randomized list of cues and attributes. Afterward, you ask them which brands are associated with each statement.
The other crucial metric is the strength of brand assets. Branding elements include fonts, colors, packaging shapes, logotypes, jingles, taglines, slogans, brand icons, etc.
You can measure the strength of distinctive brand assets by asking respondents if they recognize particular branding elements. Ask them with which brands they associate the elements.
The question: Do potential customers want to buy from your brand?
The metric to measure here is purchase intent. And it’s simply asking whether people would consider buying products or availing of services from your brand. In a lot of cases, purchase intent is positively correlated to sales.
The question: Do customers buy your brand?
Two metrics that are measured here are sales volume and sales value. You can measure them by checking to see how many items have been bought and of what value. This is the only KPI where you don’t need to measure using research. It’s real time data, and not your customers’ declarations.
However, it is important to know all the factors that might have been responsible for influencing your sales during a chosen period.
The question: Will your customers or clients recommend your brand to their peers?
You can measure this with a Net Promoter Score (NPS). Ask people how likely they are to recommend your brand to a peer — on a scale of 0-10. Respondents that give your brand a 9 or a 10 are promoters. 7-8 are called passive, and 0-6 are detractors. In order to calculate the final result, simply subtract the percentage of detractors from the percentage of promoters.
Do note that it is possible to get a negative NPS.
Using NPS is helpful in high-value industries (like cars and computers), as people have a tendency to ask for other customers’ opinion first rather than buying impulsively. However, never use NPS to predict brand loyalty. Brand loyalty is simply a derivative of the brand’s size.