Recommend Article Article Comments Print ArticleShare this article on FacebookShare this article on TwitterShare this article on LinkedinShare this article on RedditShare this article on PinterestExpert Author Sam Miller
If there is one thing every marketer should know about branding metrics, it is this: a particular metric is useful only when you yourself can take a particular action as a result of information about the brand that has been revealed. Furthermore, that particular metric should also have the ability to be significantly linked to the overall performance of your company.
But a lot of issues actually circle the concept of branding metrics. This is because the metrics put in practice would differ from one particular brand of item to another. what works for a particular item, like a computer, just might not work for another item, like a watch. The companies producing computers and watches would then have and use different branding metrics. Similarly, what works for a particular computer company just might not work for another company developing computers as well. The objectives of each company have to be determined and considered here. this fact adds to the confusion of using branding metrics. Which is precisely why the next generation in branding metrics should focus on bottom-line results.
Making such a direct connection presents much of a challenge for all companies of any industry. There are a lot of factors to consider here as well. However, for some companies, the simple causal correlation is enough to make a direct connection between branding metrics and the company’s overall performance.
Typically, branding metrics can actually be grouped into two categories, which are performance metrics and perception metrics. Performance metrics are used in assessing how successful activities for brand-building are. Loyalty, price premium, and lifetime values of customers are the basic indicators employed by performance metrics. Perception metrics, on the other hand, monitor aspects about the brand that are intangible. Consideration, awareness, and relevance are some of the indicators employed by this category by branding metrics. This type is equally important because the indicators themselves are very effective in gauging just how efficient the company’s activities towards brand-building are. More importantly, these brand-building activities should still be linked to the overall performance of the business.
No matter what type of metrics or performance indicators you use, effectiveness is ensured when there is a clear link developed between brand and business strategies. These metrics can clearly show you how better management of the brand can be achieved, and at the same time, provide you the rationale towards effective allocation of the resources for both the brand and the business. More importantly, any business would actually benefit much if a measured approach that is consistent is used to gauge its overall performance. One such measured approach could be in the form of a scorecard.
Of course, the brand metrics incorporated into the scorecard should be minimal, and should still have a direct connection with the performance of the business. Why is there a need to keep the number of brand metrics at a minimal? Simply because when you incorporate so many metrics into the scorecard, measuring overall performance would be hazy because there are so many factors taken into consideration. Thus, you should just concentrate on the branding metrics that are more relevant to the whole picture.
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