There are too many metrics and KPIs you can measure, whether you own a small business or a well-managed brand. However, it is not the point to track and measure everything – you should focus only on metrics of high relevance. Measuring your brand performance is about understanding the process of how consumers make purchasing decisions in your industry and how to increase the chances of being their favorite brand. Hence, let’s check all crucial KPIs you need to track for measuring brand performance.
Brand Awareness and Recognition
First of all, you need to know if your customers recognize your brand on the market. You can measure it with three key performance indicators (KPIs) – top of mind (TOM), spontaneous, and prompted brand awareness. Using unprompted questions is the best way to measure spontaneous and top of mind awareness. For instance, you can ask which brands they remember when thinking about a particular industry.
On the other hand, to measure prompted awareness, present your respondents with a list of brands (including yours), and ask which ones they recognize. It is not a big deal if your TOM awareness is low. However, prompted awareness is far more critical, and it should not be lower than 60%.
How well your Customers know the values of your Brand?
Finding out if your customers know what your brand stands for is super valuable for your further marketing tactics. KPIs that you want to track in this segment are brand profile and self-declared knowledge about the brand. Before getting to the questions about your brand’s profile, you should first ask respondents whether they know anything about your brand or not. Eliminate the group that knows nothing (but include the percentage in final measuring) and continues the process.
Ask remaining respondents to rate your brand based on different values and attributes, and to give each of these 1-5 ratings. Of course, the goal is to have high scores in almost every aspect. However, even if you don’t achieve that immediately, you will see exactly which segments of your brand you need to improve in order to be widely recognized. As a progressive bachelor of arts degree in product design teaches, the quality of a product, which comprises of the product’s conception, usability, and emotional appeal, should be the hallmark of its market positioning.
Purchase Consideration
Purchase intent is a crucial KPI that tells you whether people consider purchasing your product or not. In many cases, this KPI is closely related to sales, so people who answer positively will, most likely, buy a few products. However, sometimes, people change their minds right before the moment of purchase, and your job is to determine why people make such a decision. For instance, it might be due to high prices or limited distribution of your products. Anyways, whatever the most common reason is, focus on it and do everything you can to make things better and increase the number of purchases.
Sales Process
Finally, we come to the sales volume and sales value, which are two crucial KPIs. They will give you the answer to question how often people buy your products or services. To measure it successfully, you need to know how many items people bought and what their value is. For these KPIs, you don’t need people’s declarations – both metrics are entirely based on the real-time data that you can get from the digital marketing reporting dashboard. Weekly and monthly reports are crucial for these KPIs, as well as putting them into spreadsheets and documents. And finally, it is vital to know all the relevant factors that had an influence on sales in a particular period.
Would your customers recommend your brand to others?
Recommendations are crucial for business success. Word-of-mouth marketing is still super powerful, and you should not underestimate it. The KPI you should track is a net promoter score (NPS). Ask people how likely they are to recommend your brand and products to their friends and family members. They can answer on a scale from 0 to 5, for instance. Those who respond with 4 or 5 are your brand promoters, while others are either passives or detractors. Subtracting the percentage of distractors from the percentage of promoters is the best way to calculate the final result.
Measuring your brand performance should be one of your primary tasks each month. It is the only way to improve brand awareness and increase sales.
