In order to increase the perceived value of a brand to its customers, marketing metrics should be set in place. Regular monitoring of both internal and external brand metrics is one sure-fire way of increasing the market value of a brand name.
According to research, more than half of marketers worldwide do not stipulate metrics in their marketing plans. Sadly, most executives do not realize the impact of these metrics to a business organization. Ideally, the implementation of marketing programs that consider not only efficiency metrics and program metrics allow business organizations to benefit more than just immediate sales. The rationale of incorporating brand metrics and customer value metrics in marketing plans is that both factors determine future purchasing decisions of customers.
Efficiency metrics refer to the cost needed to execute a marketing campaign or program. Two examples of these efficiency metrics are staff hours and cycle time per project. Program metrics, on the other hand, compare project costs to project results. These results may vary depending on the nature of the marketing campaign launched. For example, the immediate response metrics of direct marketing programs are number of orders, revenue and profit per order. Today, savvy marketers have come to realize the need to add two more essential metrics in a marketing campaign.
Brand metrics and customer value metrics have been identified as integral in determining the future purchases of existing customers. Performance measures for brands could include brand awareness and knowledge, preferences for the brand against competitors, purchase intentions and product satisfaction. These pieces of critical information can be obtained through surveys. By monitoring these, marketers are able to calculate long-term return on investment (ROI). Customer value metrics, meanwhile, enable marketers to estimate future purchases of individual customers and market segments. These are also used to accurately monitor acquisition, retention and purchase rates from period to period.
Now, let us discuss brand metrics in detail. Professional marketers have assigned certain characteristics of a good brand name. It should be legally protectable, easy to pronounce, easy to remember, easy to recognize, attention-grabbing, capable of suggesting product benefits as well as company or product image. A brand is commonly considered as an implied promise to a customer that the level of quality of a product or service will remain the same or if not, better, in the future. In most cases, customers choose a product or service based on the reputation that a brand name has earned.
While measuring external brand performance is integral, marketing executives should also pay attention to internal brand metrics as these are crucial in determining the total brand performance. These internal measures may include employee brand engagement, internal brand culture and the employer brand. Employee brand engagement measures the willingness of employees to deliver the brand’s promise to its customers and other stakeholders. Internal brand culture, meanwhile, refers to the practices and policies that a company follows that will allow employees to fulfill the brand’s promise. Lastly, the employer brand refers to the corporate reputation as perceived by employees. This is crucial since this affects the ability of a company to attract the right employees.
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