Measuring Brand Equity in Three Steps
What does your brand mean to you? For the purposes of this blog, I am going to assume it is pretty valuable to you. While we know that YOU value your brand, do we know how much others value your brand? Do we know the actual value of your brand? The answer is likely no, and this is a big problem! Let me tell you why… Your brand is only as valuable as your consumers see it and feel about it. This is because a brand’s customer’s perception and experience are what truly define a brand’s equity and worth.
Furthermore, the only way to grow and strengthen your brand equity is by understanding your brand equity, and to understand your brand equity, you must measure your brand equity. So, how do you measure your brand equity? Keep reading the find out three common ways to measure your brand’s equity.
Three Ways to Measure Brand Equity
There are many ways to measure brand equity, but today we are only going to talk about three of them. Conducting a brand audit, calculating the return of marketing investment, and measuring the brand relationship funnel.
Have you ever wondered how your brand’s performance ranks in comparison to competing brands? If so, you’ve probably considered conducting a brand audit. A brand audit is a thorough examination or a detailed analysis of a brand’s current position in the market compared to its competitors. A brand audit shows how your brand is currently performing compared to your brand goals, and the position of the brand in the market. A brand audit is the first step in implementing a brand equity measurement system and is another way to identify the sources of brand equity.
Conducting a brand audit is a three-step procedure that involves selecting objectives, collecting data, and generating a report on your findings. A brand audit will inform any company of its strengths, weaknesses, and where it can improve. A brand audit requires a brand to assess its marketing materials and compare them to the brand’s values and identity. A brand audit also requires brands to evaluate the customer’s mindset and conduct qualitative and quantitative research.
Return of Marketing Investment
Return of marketing investment is a metric used to measure the effectiveness of a marketing campaign. It measures results as they pertain to a specific marketing objective or initiative. Similarly, to ROI, ROMI, or return of marketing investment, gauges the revenue gained from the number of marketing dollars you invested to determine if you are making more than you spent.
ROI= [(Amount Gained – Amount Spent) / Amount Spent] X 100
Measuring the Brand Relationship Funnel
The brand relationship funnel tells you where your brand is now and where you can go next. In other words, measuring your brand relationship funnel will measure your brand’s health and how far potential clients have moved through the relationship funnel. The overall goal of the funnel is to build awareness and enhance conversions. The relationship funnel measures brand awareness and consideration, brand loyalty behaviors, and brand advocacy behaviors.
The customer relationship funnel begins with awareness and funnels down through consideration, trial, repeat, loyalty, and advocacy. When measuring awareness, it is essential to determine customer’s recall, recognition, knowledge of the brand, and perceptions of the brand. Next, we need to measure their behaviors of loyalty. Does the customer make purchases regularly? Do they intend to use the product or services again? Finally, we measure brand advocacy behaviors. How involved is the customer? Do they write reviews? Would they recommend your brand? These categories can be measured in many ways, such as conducting surveys, tracking online community behaviors, online reviews, recall tests, and more.
These behaviors are essential to measure because they inform us of our strengths and weaknesses and allow us to determine what exactly our means to our customers. With this information, we gain a better understanding of our brand equity and where our brand stands in the market and how valuable our brand is to our customers. While we have touched on three reasonably common ways to measure brand equity, we did not mention all of the ways to measure brand equity. If you are interested in measuring your brand equity to determine how to grow your brand, contact me for a consultation so we can help you grow!