Important In Business
Why Branding Metrics Are Important In Business by 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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