The Key to Using Brand KPI
Brand KPI, or brand key performance indicators, are very important in ensuring proper brand management. With these indicators, you will perceive improvement in the performance of your very own brand.
If you want to take a look at the intangible assets any company would ever have, the very brand that it produces would most likely top any list. The stronger the brand, the more valuable this intangible asset becomes. Quite frankly, you would not see any brands that would be listed on the corporate balance sheets that your management team would be processing. In spite of this, the brand produced and conceptualized by the company actually plays quite a key role in the very success of the company itself. And it all boils down to brand KPI or brand key performance indicators, when you want to have actionable measures in managing your very brand at its optimum.
There have even been a lot of research studies that have been done on brand management. Results brought about by the recent ones include how strong brands actually hold to their names at least a third of what is known as shareholder value. With companies that have very strong brands in the market, the share prices of these companies actually have very modest returns of investment. Matched with these ROIs are lower risk rates as well. This is a strong indication as to how powerful and influential a companyís brand can be on the very success of the company.
When it comes to brand measurements and brand key performance indicators, these can actually be grouped into three: brand perception, brand financial value, and brand performance. These categories are further comprised by brand KPI themselves.
Brand perception, for starters, has the following metrics: consumer awareness, brand strength, credibility, relevance, and consideration. Let us explain each in depth. Consumer awareness is all about brand recognition, pertaining to the customerís ability to differentiate your brand from other brands in the competitive market. Brand strength pertains to just how stable the brand is in the market amidst its competition. Credibility pertains to just how reliable the brand is, as well as how effective the process of brand advertising is. Relevance pertains to how modern the brand is at the moment, as well as how effective it is in exciting emotions in customers. Consideration pertains to brand familiarity amongst customers.
Brand financial value is measured through revenue generation capabilities, ROIs, transaction values, and growth sustainability rate. Revenue generation capabilities pertain to the influence of brand familiarity on sales. ROI is pretty much self-explanatory. Transaction value pertains to the potential and current value that the brand has, which can be added to each transaction. Growth sustainability rate pertains to the influence of the brand on the growth rate at its maximum that the brand owner can sustain without having to increase leverage financially.
With the following brand KPI in mind, you can then see the need to make use of the appropriate balanced scorecard. This way, you can have in writing all of these metrics, which can guide you along the path towards stronger and improved brand management. Whatís more, with such a system, it would actually be easier for you to identify and determine the strong and the weak areas when it comes to brand management.
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