Importance of Monitoring Your Brand’s Performance and Its Contribution to the Success of Your Business

by | Jun 10, 2020 | Tips | 0 comments

Importance of Monitoring Your Brand's Performance and Its Contribution to the Success of Your Business
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Before you understand your brand’s performance measurement, you must understand what makes your brand. The product or service that you provide is at the heart of your brand’s investment. It is the most important impact your brand can have on your customer. Even before your customer purchases your product or service, he or she would have heard about your brand from other sources. These sources are originally affected by the quality of the product or service our brand offers. Your customer might hear about your brand from communications or advertisements from your end as well, but they would always verify your brand’s credibility from other sources. Therefore your efforts towards the design and delivery of what you offer must be aimed at satisfying your customer’s needs and desires. Various studies have inferred that brands with superior quality products and services have better brand performance and greater ROI.¬†

Brand performance can be defined by the extent to which a product or service meets customer’s needs and expectations. Brand performance is often influenced by the transformation of a product’s key constituents and characteristics that define and differentiate the brand. Most often the strongest of brands rely their performance on a strong market positioning with the help of a unique selling proposition or USP. There are a few other contributing factors towards brand performance such as:

  • The major and supplementary features of your product or service.
  • The reliability and durability of your product or service.
  • Effectiveness and efficiency of the product or service. 
  • Visual appeal and design features.
  • Price and value for money.

How to measure your brand’s performance

Any brand’s performance can be measured by monitoring certain metrics. Most businesses fail to understand the importance of monitoring brand performance these days and end up investing in other methods in an attempt to promote their business. What they do not realize is that brand performance is the primary determining factor behind a brand’s recognition among the customers and therefore revenue generation. A major reason behind this lack of judgment is that most business leaders don’t know how to monitor their brand’s performance. There are always certain indicators in place to measure and report the performance of the sales and marketing teams. But what key performance indicators can be used to determine if a particular brand is performing well or not?

Brand Awareness

The first key performance indicator is to judge the amount of brand awareness amidst your target market. You can understand this by cross-checking with your customer database as to how many people who have purchased your product or service recognize your brand and return to your place of business. The key performance indicators you can use are

  • Understand your brand’s impression and market position among your existing customers.
  • Organic mentions of your brand in posts or blogs by non-customers.
  • Mentions or recommendations by customers.

Your brand’s awareness can be measured in two ways.

First, you can monitor the overall flow of direct new customers arriving at your business or its website in a specific period, like in a week or a month. You should compare this with the total number of customers in that period. This will tell you how popular your brand amidst your target market. This will also determine the number of new customers you get.

Next, you can measure brand awareness by the number of customers you get through other well-known sources or supporting brands. For example, the number of customers who look up your brand on Yelp. 

Measuring your brand’s awareness regularly is important to understand the effectiveness of your marketing strategies and how to adjust your marketing efforts. If your brand has reached the desired levels of awareness, you can direct your investments to other avenues. 

Brand Familiarity

You need to determine how many people who are familiar with your brand understand what your brand stands for. The key indicators are:

  • How much do your customers know about your brand and its products or services?
  • Do they identify your market positioning?

The two indicators to measure the familiarity of your brand are:

  • Your customer’s rate of return to your business or its website.
  • Time spent by your customer at your business or its website.

These indicators will help you to understand if your customers realize what your brand provides before they approach your business. If they do, they are likely to spend more time at your business. Whereas if they don’t, they will exit without purchasing or considering your products or services. 

Purchasing Intent

The next indicator is to understand what percentage of your customer traffic inflow buys your product or services. You can collect this data from marketing interactions, webpage traffic, customer demographics, and return of clients. 

To measure purchasing intent relative to your brand, you will have to consider a group of factors related to your brand. Your brand might be selling the products directly, or through other sources as well. 

Brand Advocacy

Your brand’s advocates are either your customers who are fully satisfied by your products or services, or they are enticed by your referral programs. Either way, they promote your brand for free to people who trust them, which means their marketing conversion rates are very high. 

It is difficult to measure this indicator as there might not be enough available data. However, you can collect some first-hand information through interactions with your customers with the help of:

  • Online surveys or questionnaires.
  • Mentions on social media or blogs and the emotions behind them.

Remember that your brand is so much more than just your logo. Having a powerful brand name in the market is important for the success of your business. So it is also important to employ brand performance metrics to evaluate your brand’s recognition. Your brand’s success can significantly lower your costs towards marketing and increase your revenues.

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Author:

Lilach Bullock

Published:

10 Jun, 2020

Categories:

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