In the competitive atmosphere out there, as a brand, you will definitely be working on multiple strategies and leveraging various channels to reach your audience and build your reputation in the market. These strategies are critical to staying relevant and performing well as a business.
But how do you measure the effectiveness of your strategies and the position your brand occupies in the market? In other words, how do you calculate your brand performance? In this article, we will answer precisely that!
What is brand performance?
Analyzing the performance of a brand by closely studying its activities and strategies is what can be called measuring brand performance. It is measured in order to determine the effectiveness of a brand in terms of achieving its business objectives and its positioning in the market in relation to other competitors.
Brand performance can be ascertained by analyzing various key metrics that provide insight into the brand’s health, awareness, equity, reputation and more.
Here are a few reasons why measuring brand performance is a crucial part of any business.
- It helps determine the brand’s competitive standing and position in the market.
- It provides insight into customer perception.
- It allows brands to evaluate ROI for branding initiatives and marketing strategies.
- Let’s you identify opportunities for potential growth.
- You can monitor the brand’s equity and overall health.
How to measure brand performance?
Measuring brand performance requires recognizing and tracking the key performance metrics for your company. So, the first step here would be to identify the relevant metrics that need to be tracked in relation to the brand’s business objectives. Once this is done, you can benchmark your numbers against the competitors’ and understand where you stand relatively, in the market.
We have listed some of the key brand performance metrics that should be tracked for an accurate brand performance assessment.
1. Brand awareness
One of the most important metrics to measure your brand performance is brand awareness, which indicates how familiar your brand is to the target audience.
Even before contemplating a purchase, the customer has to be aware of your brand’s existence. This is why brand awareness is considered a crucial metric even at the top of your marketing funnel. A greater brand awareness enhances the probability of the brand being included in the consumer’s options when they are prepared to make a purchase.
2. Brand reputation
Brand reputation involves the understanding of what perception your customers and stakeholders have of the brand. It offers critical insight into the brand’s overall performance and health. Brand reputation greatly influence the market value of a company and hence establishing a strong reputation is important.
Brand reputation can be measured in a few ways. Companies can conduct a sentiment analysis using a media monitoring tool to track positive, neutral or negative mentions. https://www.youtube.com/
An emotion analysis is another way to measure brand reputation, where the customer’s emotions and true perceptions about a company and its services can be understood. This insight can be used to tailor a better customer experience.
3. Presence score
Presence Score is a metric for measuring your brand’s popularity and online activities, particularly on digital platforms like social media. A higher presence score typically means that your brand presence across the web is wider and that your brand is being talked about, translating into better brand familiarity among customers.
By analyzing the presence score in real-time, you can monitor any changes in the brand’s online presence and respond appropriately in case of emergencies.
4. Brand equity
Brand equity is the value added to the product or service by a brand and it includes factors like customer experiences, perception and customer’s attitude towards the company. It is an important metric as brand equity can influence sales as well as the company’s growth in the long run.
Brand equity can be measured by comparing your brand product prices with generic products and then calculating the additional revenue your brand generated.
5. Brand loyalty
Measuring brand loyalty will give you an idea of how strong of a relationship you have with your existing customers. The more loyal your customers are the more the chances of them making repeat purchases, resulting in a steady revenue gain. Furthermore, loyal customers also help in word-of-mouth marketing as they will surely recommend your brand to others.
This brand performance indicator can be measured by calculating the number of customers who make repeat purchases within a particular time frame. You can also measure the churn rate, or the percentage of customers who stop purchasing from you, as lower churn rates indicate higher loyalty.
6. SOV (Share of voice)
Share of voice or SOV quantifies the portion of market visibility that your brand commands compared to your competitors, particularly in the domains of advertising and media. If your presence is more prominent in the marketing channels and you are successfully reaching your target audience, you will have a higher SOV. Aiming for a better SOV can help your brand stand out among competitors and create brand awareness among your audience.
7. Digital channels distribution
Assessing the digital channel distribution of a brand involves tracking the brand’s presence and engagement on various online platforms such as social media, websites, and other digital outlets. This metric will tell you which of the channels works more in your brand’s favor. Examining the effectiveness of each marketing channel enables you to strategically allocate your budget to those that yield a higher return on investment (ROI). This data-driven approach ensures optimal resource distribution while maximizing the impact of your marketing efforts.
8. Market share
Measuring market share is indispensable in evaluating brand performance, as it provides a clear indicator of a brand’s presence and competitiveness within its industry. A growing market share signifies your brand’s increasing influence, capturing a larger portion of the consumer base. By monitoring changes in market share over time you can understand how well a brand is performing in comparison to its competitors.
Market share can be calculated by dividing a brand’s total sales or revenue by the total sales or revenue of the entire market.
9. Social media reach
Social media reach indicates the reach you have garnered on your social media platforms, which lets you understand your brand performance in relation to your social media strategies. Monitoring your reach on social media also is a great way to understand whether your content is making an impact on your target audience.
An increase in reach means that the audiences are catching on to your brand and it is becoming popular among the audience, whereas a decrease in reach could indicate a change in customer interests. With a third-party analytics tool, you can monitor your social media reach in a more comprehensive way.
10. SEO metrics
SEO metrics are another highly important indicator of your brand performance, which provides insight into the organic search and SEO performance of a brand.
Top ranking and relevant keywords enhance brand visibility, which is a critical factor in driving organic traffic to your website. Monitoring these keyword rankings will provide insights into how effectively your content aligns with your audience’s searches.
Some of the other important SEO metrics to track include backlinks, traffic value, indexed pages and organic traffic conversions.
11. CLV (Customer lifetime value)
Customer Lifetime Value or CLV is the estimation of how much revenue a brand can expect from a customer in the entire duration of their relationship with the brand. Calculating the CLV helps businesses understand how profitable their customer base actually is. Understanding the lifetime worth of a customer can guide decisions on the appropriate allocation of resources for acquiring and retaining them.
CLV also lets you segment your customers more effectively, as you can identify the more valuable customer groups and tailor your strategies to better suit different customer segments. By focusing on high-value customers, you can also make significant strides in terms of ROI as well.
You can calculate customer lifetime value by multiplying the customer value by the average customer lifespan.
12. ROI (Return on investment)
In any business, the expenditure should be justified by positive results.
ROI or return on investment is a metric that helps you identify the marketing strategies, campaigns and channels that yield the greatest value in comparison to their costs. In other words, ROI is the measure of the financial returns from brand activities and the company’s marketing efforts.
Measuring this enables you to optimize budget allocation and focus investments on the most effective marketing channels.
To calculate ROI, start by determining all the costs associated with the marketing/branding campaigns. This includes all things from media spending to staff salaries and all creative and production costs in between. Also track the results of the investment in terms of revenue, lead generation etc. directly.
You can calculate ROI using this formula: ROI= (Net Profit/ Total Campaign Cost) x 100
Brand performance can be measured in an accurate manner by keeping track of the above key performance indicators. But keep in mind that for a comprehensive measurement of brand performance monitor all the large data figures including sales numbers, website metrics, reach etc. and study them in relation to a bigger picture.
As the marketplace is an ever-evolving sphere, it is crucial that the KPIs are constantly monitored. In addition, a lot of the complications that arise in measuring brand performance can be greatly reduced by leveraging the right tools.
To accurately map your brand performance, you need to be on top of your online reputation management strategy. And this is where having a competent AI tool like Radarr comes in to help.