PROPRIETARY AND CONFIDENTIAL

Developing brand metrics to measure business performance

Michael Million

April 2008

BrandSmart Conference by the AMA

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Agenda

•  What are brand metrics and why do they matter? •  How can we link brand metrics into business performance? •  Behavioral metrics •  Perceptual Metrics

•  Performance Metrics •  Correlations

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What are brand metrics?

Brand Metrics are units of measurement that determine how strong or weak a brand is relative to its impact on driving business goals

Typically brand metrics fall into three categories:

•  Behavior metrics, or what employee do to promote or build the brand

•  Interaction metrics, or how customers interact with the brand

•  Perception metrics, or the resulting perceptions customer have based on their interactions

•  Performance metrics, or the resulting business impact based on customers’ interactions and perceptions with the brand.

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Why do brand metrics they matter?

Brand metrics are important as diagnostic, predictive, and prescriptive tools to help managers understand whether (and to what extent) the brand is on track relative to its positioning, and its impact on the business.

Knowing how your brand is perceived enables you to “course correct” as necessary so that the brand is better aligned with overall business objectives, can head off emerging liabilities, and can take advantage of momentum or spikes in positive perceptions.

Moreover, metrics of this type provide visibility into which marketing efforts are paying off most relative to driving desired perceptions of the brand and growing the business.

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Examples for each type of metric category?

Behavioral Metrics

Interaction Metrics

Perceptual Metrics

Performance Metrics

what employees do to build the brand

how customers interact with the brand

resulting customer perceptions

resulting business impact

•  Employees understanding of strategy

•  Employee engagement scores

•  Experience delivery •  Communications •  Service levels

•  Awareness

•  Consideration

•  Reach / frequency

•  Web traffic

•  Social index

•  Demo trials

•  Product reviews

•  Lead generation

•  Purchases

•  Re-purchases

•  Market Share

•  Wallet Share

•  Profit Margin

•  Revenue uplift

•  Premium pricing

•  Lifetime value

•  Conversion rate

•  Customer satisfaction

•  Positive associations

•  Frame-of-reference

•  Purchase intent

•  Advocacy intent

•  Net promoter scores

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How might we prioritize which metrics to track?

Behavioral Metrics

Interaction Metrics

Perceptual Metrics

Performance Metrics

Which metrics will have the biggest impact on how customers experience your brand?

Which metrics will have the biggest impact on how your brand is perceived?

Which metrics will have the biggest impact on the performance of your business?

What are the most important metrics to track the performance of your business?

Start with the end, and work backwards

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How can we link brand metrics into business performance?

Behavioral Metrics

Interaction Metrics

Perceptual Metrics

Performance Metrics

what employees do to build the brand

how customers interact with the brand

resulting customer perceptions

resulting business impact

•  Employees understanding of strategy

•  Employee engagement scores

•  Referrals •  Experience delivery •  Communications

•  Awareness

•  Consideration

•  Reach / frequency

•  Web traffic

•  Social index

•  Demo trials

•  Product reviews

•  Lead generation

•  Purchases

•  Re-purchases

•  Market Share

•  Wallet Share

•  Profit Margin

•  Revenue uplift

•  Premium pricing

•  Lifetime value

•  Conversion rate

•  Customer satisfaction

•  Positive associations

•  Frame-of-reference

•  Purchase intent

•  Advocacy intent

•  Brand relevane

After the key performance metrics are determined, test how they are effected (increased or decreased) by isolating in on different perceptual, interaction and behavioral levers / and how they correlate with each other

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In Conclusion

•  Brand metrics can be fiend in several different ways

•  Metrics that only track perceptions of the brand will have limited value

•  Enhanced value will come from connecting those perceptual metrics for customer actions and thus business performance, as well as those actions that driven those perceptions

•  Determining which levers drive which metrics are important when resources are constrained and prioritization is paramount

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Michael Million Bio & Contact Information

Michael is a partner at FullSurge, a management consultancy focused on driving growth through brand, marketing and innovation strategies. He has over 20 years experience advising companies on customer, brand, and go-to-market strategies, as well as the communication and design systems driven by those strategies. Michael’s ability to solve a broad set of underlying business challenges comes from his extensive knowledge of insight methodologies, conceptual and strategic skills, and ability to clarify the complicated. Prior to FullSurge, he was a partner at VSA, where he built the agency’s strategy practice to address broader business issues of its clients. Prior to VSA, Michael held senior level positions at top tier brand consultancies including Prophet and Landor Associates. Throughout his career, Michael has successfully led large engagements for a wide variety of Fortune 500 clients including GE, IBM, DuPont, Boeing, CDW, Cargill, Textron, KeyCorp, Kohler, and United Airlines, as well as mid-sized companies such as the College of American Pathologists, Sea Ray Boats, the Syfy Channel, and the Blue Bird Bus Company. Michael has guest lectured on branding and strategy at the Kellogg Graduate School of Management at Northwestern University and Haas Business School at University of California, Berkeley. He has facilitated workshops for the American Management Association, was a panel member for high-ranking business schools, and has frequently spoken at Board Meetings for his clients. mmillion@fullsurge.com 312-957-5801 312-498-1515 C