Brand Keys Overview - A Guide to Predictive Brand Equity and Consumer Loyalty

Emotional Engagement and Loyalty Metrics

CMO Institute – January 26-28, 2014

About Brand Keys

© 2014 Brand Keys, Inc. 2

Brand Keys, a research-based consultancy specializing in emotional brand engagement and consumer loyalty metrics.

These metrics are proven to be predictive of future in-market behavior, correlating very highly with sales and profitability.

The model and methodology is grounded in psychology, allowing us to understand both the emotional and rational factors which bond consumers to brands.

The model can accurately measure the impact that any media, marketing, or communications initiative will have on future in-market behavior – in advance of the spend!

Some Brand Keys Clients


Dr. Robert PassikoffNamed a “2007 ARF Research Innovator”

for development of Brand Keys Brand-to-Media Engagement Model and

a 2012 ARF “Great Mind” in Innovation forthe Brand Keys Digital Platform GPS℠

Published and Recognized Brand Engagement and Loyalty Experts

Leigh Benatar, EVP,Recipient of 2010 ARF

“Great Mind” Award in Innovation


“The consumer does not behave as he says, he does not say what he thinks and

he does not think what he feels.”– David Ogilvy


PROBLEM:

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In 2007, the Consumer Decision Process was:

70:30Emotional Rational

(Source: 2007 Brand Keys CLEI) © 2014 Brand Keys, Inc.

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2013:

85:15Emotional Rational

(Source: 2013 Brand Keys CLEI) © 2014 Brand Keys, Inc.

The Ideal:

Consumer’s emotional and rational view of the category, letting you understand how consumers really view, compare, and choose among category options.

What yardstick do consumers use to identifyexactly what will create loyalty and engagement?



Brand Keys Methodology

Statistically fuses the “emotional” (psychological) values with the “rational” ratings of attributes that bond consumers with a brand via quantitative interviews with any target segment.

Result: Leading-indicator metrics proven to predict future in-market consumer behavior (trial, additional purchase, recommendation, and loyalty).

Two Proprietary Lines of Questioning:

1. Psychological Assessment: Indirect Q&A; reveals what values truly drive the consumer’s in-market behavior. Quantifies what your customers really believe about a brand, not what they tell you they believe.

2. Importance Ratings on Category Attributes, Benefits, & Values:

Direct Q&A rates the importance of 20+ category-specific attributes, benefits, and values (ABVs).

Both lines of questioning are used to measure each brand’s equity independently.

Rigorous statistical analyses (proprietary factor, regression, and causal path analyses) produce the leading-indicator metrics and insights that are presented in easy-to-read bar chart format.


Brand Keys Methodology (cont.)

The diagnostic measurement system, based on globally accepted Jungian behavioral psychology, delivers in-depth category and brand metrics, that can:

• Accurately measure emotional brand engagement.

• Identify the loyalty and engagement drivers that can be strategically leveraged to increase trust, consideration, purchase and loyalty toward client brands.

• Identify areas of opportunity for differentiation and innovation, providing clients with a competitive advantage.

• Easily allow for testing of new and/or evolutionary concepts and product/service offerings – pre-market introduction.

• Deliver layered data granularity for strategic (tracking and scorecard reporting, communications development, product/service development) to tactical (promotional, experiential, advertising) innovation.

• Accurately measure the impact that any media, marketing, or communications initiative will have on future in-market behavior.

• Be easily incorporated into current brand tracking research.

© 2014 Brand Keys, Inc.

These psychological behavioral metrics and higher-order statistical analyses identify true category drivers − the emotional and rational decision-making factors

that drive engagement

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Carl JungFounder of Analytical Psychology

Emotional (Below the Radar)

Psychological Jungian-based Personification Questionnaire

Rational (Direct Questioning)

Category Attributes, Benefits & Values

FUSING

Factor Analysis

Regression Analysis

Causal Path

Modeling


Brand Keys Emotional Engagement Model(Sample Output)

100

110

120

130

140

150

160

170

Feel Good & LookGood - 29%

Trusted BrandThat Knows Me -

24%

Innovative &Nurturing BrandFor Value - 20%

EffortlessTransformation -

17%

168

146

160

140

Ideal

Lowest

Highest

Pot

en

tial f

or

Diff

ere

ntia

tion

The Four Dimensions:

1. Importance of Loyalty Drivers.

2. Contribution that each driver makes to engagement, loyalty, consideration and purchase.

3. Customer Expectation level for each Driver (indexed and benchmarked to 100).

4. Attributes, Benefits and Values in Driver and their percent contribution.

3: What do consumers expect from each driver, and where’s the opportunity for greatest differentiation for the brand?

4: What does each driver signify, and what matters most?

2: How much does each driver contribute to loyalty and purchase decision?

1: Which are the most important drivers in the category?

Loyalty Drivers - Order of Importance

Driver 1 Driver 2 Driver 3 Driver 4

0%

20%

40%

60%

80%

100%

5%9%

9%

10%

13%

19%

23%

Makes me feel better about myself after my makeover

Helps me find products that complement one another, like lipstick/liner pairings

Displays products in a well-organized and attrac-tive way

Offers micro-skin examination

Offers me free samples

Beauty consultant/salesperson uniform reflects the brand’s image

Displays images of women I can relate to


Brand Keys Emotional Engagement Model(Sample Output)

0%

20%

40%

60%

80%

100%

5%9%

9%

10%

13%

19%

23%

Makes me feel better about myself after my makeover

Helps me find products that com-plement one another, like lipstick/liner pairings

Displays products in a well-or-ganized and attractive way

Offers micro-skin examination

Offers me free samples

Beauty consultant/salesperson uni-form reflects the brand’s image

Displays images of women I can re-late to

Engagement Driver Attributes, Benefits and Values in Driver and their percent contribution


• Emotionally-derived metrics

• Utilizes category-specific ideal, which identifies how customers will view a category, evaluate brands within the category, and ultimately buy within the category

• 100% respondent driven

• Test/re-test reliability of .93 off National Samples in the US and the UK

• Recalibrated every 5 years

• B2B and B2C applications

• Used in 35+ countries around the world

• Via independent validation, Brand Keys’ metrics have been shown to correlate very highly with positive, in-market consumer behavior and sales

Brand Keys Loyalty & Engagement ModelTechnical Specifications


Independent Validation: Brand Keys Metrics Correlate with Sales/Profitability

24/7 Wall St., a global equity analysis firm, ran a financial equity analysis against the 598 brands included in the Brand Keys Customer Loyalty Engagement Index (CLEI). They identified 11 brands Brand Keys assessed as best meeting consumer expectations and found that 10 of those 11 brands were the market leader in their category.

Aquetong Capital Advisors, an independent equity valuation firm, examined the correlation between Brand Keys brand equity metrics and brand value. Aquetong selected 10 categories from the Brand Keys CLEI, and found correlations ranging from a low of .830 to a high of .901, confirming the ability of Brand Keys assessments to predict impact on future purchase behavior, and work cross-category.

The ARF “First Opinion Research Review” validation of the model and methodology can be found at http://brandkeys.com/wp-content/uploads/2011/12/013007.ARFReview.BK_.pdf .

http://brandkeys.com/wp-content/uploads/2011/12/013007.ARFReview.BK_.pdf

http://brandkeys.com/wp-content/uploads/2011/12/013007.ARFReview.BK_.pdf


Multi-Category Experience viaBrand Keys Customer Loyalty Engagement Index

AirlineAllergy Medication (OTC)Athletic FootwearAutomobileBankBeer (Light)Beer (Regular)Breakfast CerealCar Insurance Car RentalCasual/Fast Casual DiningCoffeeComputer/LaptopCosmetics (Luxury)CosmeticsCredit CardDiapersE-ReadersEvening News ShowFlat Screen TVGasolineHeadphones

Hotel (Economy) Hotel (Midscale)Hotel (Luxury) Hotel (Upscale)Instant Messaging AppsInsurance (Home)Insurance (Life)Major League VideoMajor Sports LeagueMFB Office CopierMorning News ShowMutual FundNatural Food StoresOnline BrokerageOnline MusicOnline PaymentOnline RetailersOnline Travel SiteOnline Video StreamPackaged CoffeePain Reliever (OTC)Parcel Delivery

Pet Food – Canned (Cats)Pet Food – Canned (Dogs)PizzaPrice ClubsPrintersQuick-Serve RestaurantRetail Store (Apparel)Retail Store (Department)Retail Store (Discount)Retail Store (Home Improvement)Retail Store (Sporting/ Recreational Goods)Search EngineSmart PhonesSocial Networking SitesSoft Drink (Diet)Soft Drink (Regular)TabletsToothpasteVodkaWireless Phone Service

2014: 64 Categories, 555 Brands

The Clients Have Access to Best Practices and

Insights via Brand Keys Customer LoyaltyEngagement Index (CLEI)

• Annual survey (2014 is 18th year)

• 64 categories − 555 brands

• 32,000 consumer interviews

• Drawn from the 9 US Census regions

• 18-65 years old

• 70% phone interviews, 25% in-person for cell phone only, and 5% online.

• Self-classify for category and brand usage


• Male/Female

http://www.google.com/aclk?sa=L&ai=CaIpLAbiiUOO5Icr36AGuq4CQC86m2oADpvuwqDOms_2mgAEIBhADINqU0AYoBFD7q7rwBGDJxqmLwKTYD8gBB6oEJk_QB6z2kuxwUdnXHbJP3AfDe51ehc7S0coDQRKIa0kmjxmXS6cfgAWQTroFEwiY2qKh7syzAhWwWDQKHacxADfABQXKBQCgBibgEsCvy5z4xsP3Ow&ei=ALiiUJjaKrCx0QGn44C4Aw&sig=AOD64_3wFH7koV50ThJh0bd_0Ih-l8_76Q&ctype=5&sqi=2&ved=0CIkBEPMO&adurl=http://www.walmart.com/ip/11038613?adid=22222222227000046815&wmlspartner=wlpa&wl0=&wl1=g&wl2=&wl3=13685230750&wl4=&wl5=pla&veh=sem


What Emotional Engagement Metrics Can Do For Your Brand

• Identify real category expectations• Identify consumer, customer and brand values, usually 12-18 months before they

show up in the marketplace or in focus groups

• SWOT can predictively identify strategies, imagery, and tactics that will allow brands to challenge and outmaneuver competition

• Identify how brands can build consumer trust, engagement and sales. • Provide category and brand insights that can serve as a resource for customers• Help optimize budgets• Help brands grow faster and more profitably

Additional Applications:

• Serve as leading-indicator brand benchmark for all research and marketing activities

• Provide an overview comparison of concept or ad performance

• Input to brand scorecards or strategic dashboards

• An engagement-based methodology to track brand performance, turning tracking into prediction

Brand Keys Loyalty & EngagementModel Applications

Predictive Category Dynamics

Loyalty and Engagement Metrics

Brand Health

Shopper Insights

Customer Experience Evaluations

Competitive Intelligence/Brand SWOT Analyses

Communications and Concept Development

Communications and Advertising Testing

Ideation and Innovation Development

Media Engagement and Optimization

Partnership and Sponsorship Evaluations

Brand Architecture Development

Easily integrated with existing brand and tracking research



Taste/Reputation = 45% Quality/Trust = 25% Use/Suitability = 16% Value/Availability = 14%90

95

100

105

110

115

120

125

130

114112

123

111109

100

114

111

106 107

112

102

97

101

106 107

Ideal Kids Cereal A Kids Cereal B Kids Cereal C

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SWOT Analysis

Loyalty Drivers – Order of ImportanceHighest Lowest

Cust

omer

Exp

ecta

tion

Leve

ls


1Q 13 2Q 13 3Q 13 4Q 13 1Q 1490

95

100

105

110

115

120

125

130

109112

116118

124

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Brand HealthCu

stom

er E

xpec

tatio

n Le

vels


Taste/Reputation = 45% Quality/Trust = 25% Use/Suitability = 16% Value/Availability = 14%90

95

100

105

110

115

120

125

130

114112

123

111109

100

114

111

Ideal Kids Cereal A

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Identification of Expectation Gap by Driver


Cust

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Exp

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Leve

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Expectation Gap = Opportunity for Differentiation




Menu Variety = 45% Brand Value & HealthyChoice/Quality = 25%

Customer Service = 16% Décor & EntertainmentFactors = 14%

90

95

100

105

110

115

120

125

130

114112

123

111109

100

104

111

116

105

109

112

97

101 102

111

103

100

105

108

Ideal Brand Campaign A Campaign B Campaign C

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Strategically Test Communications and Advertising


Expe

ctati

on L

evel

s


Expe

ctati

on L

evel

s

Path-to-Purchase Drivers – Order of Importance

Highest Lowest

100

110

120

130

140

150

160

170

168

146

160

140

Ideal

Felt better after my makeover 23%Shows me how different products complement one another, like lipstick/liner pairings 19%Product lines are well-organized and well-stocked 13%Has “perfect match” electronic calculators 12%Micro-skin examination 10%Makes free samples available 9%Beauty consultant/salesperson uniforms reflect the brand’s image 9%Has large backlit images of different cosmetics and their looks 5%

Has light box mirrors that can adjust lighting for: AM, PM, or indoor 28%Has good lighting 25%Offers beauty solutions that are tailored for my lifestyle and my beauty concerns/questions 20%Creates a record of the products I’ve purchased, as well as recommendations of other crèmes, foundation, powder, eye shadow, mascara, bronzers, highlighters, line, lipstick, gloss, and nail polish brushes and applicators that might work for me 20%Provides informative cosmetic-specific booklets 5%Has stand-alone information and display cases 3%

Provides treatments and equipment for all skin types you can sample in the store 29%Offers an automated beauty IQ/skincare analysis 25% Provides computerized, interactive examinations and recommendations 24%Offers gift bag promotions 13%Quick mobile credit card checkout 9%

Provides professional makeovers 30%Has well-informed, well-spoken make up artists 24%Provides professional applicators, sponges, cotton balls and tissues for sampling various products 18%Has comfortable seating/stools 10%Offers classes and workshops 10%Offers boxed sets 8%

Shopper Insights: Experiential Elements Linkedto Drivers and Their Percent Contributions


Engagement and Loyalty Measures Can Be EasilyConfigured For a Brand’s Strategic Scorecard,Dashboard, or Tracking Metrics

Emotional Engagement

Index *

Ideal 132

Brand + Campaign A 129

Brand + Campaign B 126

Brand 124

* Weighted Performance on Category Drivers


360° MEDIA OPTIMIZATION

Brand-to-Media Engagement: Best-in-class, leading-edge leading-indicator media platform optimization process. A quantitatively rigorous, empirical system that charts precise effects on awareness, brand image, brand equity and purchase behavior directly attributable to a brand’s placement in a particular media vehicle.

Breakthrough Digital Platform GPS© recognizes that consumers engage with digital differently, dependent on how they engage in the category. This pinpoints the intersection of brand engagement and digital enabling brands to get very specific in messaging and very strategic in media placement.



Cust

omer

Exp

ecta

tion

Leve

ls

Location & Value =40% Merchandise Range =24% Shopping Experience =20% Store Reputation =16%100

105

110

115

120

125

130

135

119

116

125

117

109 110 110 110

107108

105

111

106108

103

108

116

114115

112

119

113

120

112

Ideal Brand Brand on Fox News Brand on Iron Chef America Brand on The Blacklist Brand on The Good Wife

Brand-to-Media Engagement Measures –Media Programming Effects

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Cust

omer

Exp

ecta

tion

Leve

ls

B2ME Scores100

105

110

115

120

125

130

135

119

110108 106

114116

Ideal Brand Brand on Fox News Brand onIron Chef America Brand on The Blacklist Brand on the Good Wife

Brand-to-Media-Engagement Index Performance(Weighted Performance on Category Drivers)

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Brand-to-Media Engagement Metrics ROI Correlations

Correlations 0.91 0.65 0.87 0.76 0.85

Audience B2ME Score*Category-

Aided Awareness

Brand Strength Rating

Behavior (Average # of

Visitors)

Viral (% posting to Facebook or

texting)

Sales($)

Target Promo on Dancing With the Stars

118 42% 89% 3.9 17% $28.13

Target Promo on The View 106 40% 85% 3.7 13% $20.27

Target Promo on The Closer 100 35% 86% 2.8 12% $21.91

* Weighted Performance on Category Drivers



The Digital Platform GPS© Orienting Brands in the Digital World

How are consumers engaging with digital platforms in the category?

How are consumers engaging with the category itself?

+ =Digital Platform GPS℠ - The intersection of digital platform and brand engagement


Brand Keys Digital Platform GPS AnalysisFor Category X

20%

19%

16%

12%

6%

5%

4%

4%

4%3%

3% 2% 2%

Search Engines (Google, Yahoo)

Local Listings (Yelp, Yellow Pages)

Email

Brand's Website

Social Networks

Digital Newspapers

Paid Search (PPC)

Display Ads & Banner Ads

Online Video

Mobile Apps

Blog

Mobile Advertising (online/apps)

Digital Magazines

Facebook 32%Google+ 29%YouTube 17%Twitter 13%Pinterest 5%Instagram 4%


Trusted Brand for Value =29%

Safe to Use =25% Strong Relief =24% Family Friendly =22%100

110

120

130

140

150

134130

125

120

Brand Keys Digital Platform GPS AssessmentsIdentify How The Brand Can Best Communicate Strategically

Cust

omer

Exp

ecta

tion

Leve

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-Shopping Portals -Digital Magazines -Digital Newspapers -Email -Brand’s Own Website

- Search - Browsing Portals

-Gaming -Music -Mobile Apps -Social Networks

Source: 2013 Brand Keys Digital Platform Engagement Index

-Online Video -Classified -Blogs


Brand Keys Advantage

• A flexible system that is both innovative and comprehensive. A truly customer-centric brand benchmark for the evaluation and tracking of brand initiatives.

• Independently validated loyalty and engagement model correlating highly with sales, profitability and corporate valuation.

• Proprietary B2C and B2B loyalty and engagement applications deployed worldwide.

• Industry recognized leading-indicator loyalty and engagement model.

• Brand Keys’ metrics have been shown to correlate very highly with positive, in-market consumer behavior and sales.

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Annually, we look at how closely what we’ve said —based on our predictive loyalty and engagement metrics — in our blog, The Keyhole, and in our

Forbes column, matched up with actual results in the marketplace.In short, to see what happened.

Listen in on (or download) results in categories including smartphones, beer, retailers, cars,service providers, major league sports, and trends in 2014.

brandkeys.com/brand-stories

http://brandkeys.com/brand-stories/

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Leigh BenatarEVP, Brand Keys, Inc.

212-532-6028 [email protected]

www.brandkeys.com

For further information and to discuss your needs please contact:

Brand Keys Overview - A Guide to Predictive Brand Equity and Consumer Loyalty

Marketing

Transcript of Brand Keys Overview - A Guide to Predictive Brand Equity and Consumer Loyalty