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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.
About the Author
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