BRAND METRRICS

Brand Metrics: Proof Beyond a Doubt of

Branding’s ROI
BY: BRIAN LISCHERCATEGORY: STRATEGY

To rebrand or not to rebrand? That is often the question. If you’re the one responsible for
making the decision, you know how difficult a question it can be.

It may be obvious to you that your company’s brand is in desperate need of a refresh, but
brand management involves many intangibles. How can you be certain it will all be worth it
in the end? More importantly, how can you prove to other company stakeholders it will?

The answer is brand metrics. While they may not be the most thrilling part of the branding
process, brand metrics are the proof in the pudding, the hard numbers that tell you how your
brand is performing.

Metrics measure the success of your branding effort. More than that, they provide
prescriptive insight on what course corrections need to be made to optimize future
performance.

Every decision-maker loves that quiet “told you so” moment when the value of their strategy
is borne out by measurable results. Brand metrics give you just that. Let’s take a look at how
you can make them work for you.
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Types of Brand Metrics

There are literally countless data points that can be taken into consideration when measuring
your brand. It’s helpful, then, to think of metrics in terms of higher-level orders, each
representing a different facet of your brand’s success.

We organize metrics into three primary categories whose causal connection reflects the
science of brand impact: perception, performance, and financial. How a brand
is perceived affects how it performs, which in turn affects its bottom-line financial figures.

The three-tier model also maps to consumer behavior. Metrics measure consumer
perceptions, enabling you to identify the optimal state of those perceptions. By implementing
metric-driven course corrections you can influence consumer behavior, which ultimately
determines financial performance.

Here’s a more detailed breakdown of what each category entails:

Perception Metrics

Perception metrics are a measure of customer awareness and sentiment. They monitor the
effectiveness of your engagement efforts with comparative stats on how your target audience
feels about your brand and the extent to which they are familiar with it. Examples include:

Awareness
 Recall
 Website traffic
 Followers
 Reach
 Impressions

Consideration
 Differentiation
 Relevance
 Esteem
 Perceived quality
 Purchase intent
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Performance Metrics
Performance metrics are a measure of the consumer behaviors that are driven by brand
perception. Performance metrics examine both isolated behavior (such as purchases), as well
as behavior over time (brand loyalty):

Purchase
 Leads
 Sales
 Close ratio
 Preference
 Price premium

Loyalty
 Customer satisfaction
 Repeat purchase
 Referrals
 Retention
 Customer lifetime value

Financial Metrics
Financial metrics gauge how customer behavior creates tangible economic value. They are
the proverbial proof in the pudding when it comes to demonstrating the return on investment
in branding efforts. They include metrics like:

 Market share
 Revenue
 Profitability
 Cost per acquisition
 Brand valuation

Making the Right Metrics Work for You

Leveraging the power of brand metrics is a pretty straightforward process:

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1. Establish a framework: Decide which metrics are most important to
your brand’s performance. If you’re not sure, ask yourself which metrics will enable you to
make a decision. The only valuable brand metrics are actionable brand metrics. There’s no
point in spending money on research and analysis unless the insights you get back are
practically useful. Keep your list reasonable to ensure that the data gleaned is rich and relevant.
Pick the top 5 metrics to start.

2. Set your benchmarks: Determine where you brand currently stands with
regards to each of your chosen metrics. Brand awareness, web traffic, sales leads, profits—
determine the benchmark for each so that you have a baseline to work with.

3. Measure brand impact: After implementing your branding efforts,

return to the field and collect precisely the same data you did in Step 2. Collecting the same
data by the same methodology ensures statistical integrity and actionable figures. Differential
analysis will allow you to see where your brand is outperforming expectations, and where it is
struggling.

4. Evaluate and optimize: Branding should be a continuously informed

and regularly implemented endeavor. Take the actions necessary to course correct where your
brand is lagging and capitalize where you see momentum. This ongoing process will ensure the
optimization of your branding initiatives.

Like anything in business, brand metrics should be dynamic and responsive. As your business
objectives shift, so should your metrics. They should remain relevant to both business
performance and the bottom line. Keeping brand metrics tied directly to business goals is the
key to placing a hard and fast value on this intangible thing we call “brand.”

Reference Link

http://www.ignytebrands.com/brand-metrics-proof-beyond-a-doubt-of-brandings-roi/