3 WAYS TO MEASURE YOUR BRAND EQUITY

Your brand is incredibly valuable to you, your business, and your stakeholders. However, the true value of brand equity is often unclear. How much is your brand really worth to your target customers?
 
Let’s breakdown 3 common ways to measure your brand equity.

Return of marketing investment

The simplest way to think about the return of your marketing investment (often referred to as ROMI or ROI) is the amount of revenue or gains your received in relation to the marketing dollars spent. 
 
[(AMOUNT GAINED – AMOUNT SPEND) / AMOUNT SPENT] X 100
 
Let’s supposed we’re a local BBQ restaurant named Gary’s Grub and we spend $100 in marketing. However, we make $300 in sales that we know came from the marketing efforts. Using the formula above, we can determine that we had a 200% return on investment.
 
This formula is a simple yet powerful measurement of your brand equity. Although it is certainly not the end-all-be-all, this formula empowers you with an understanding of your brand equity and how well your brand performs when backed by marketing promotion.

Digital KPIs & Campaigns

Digital marketing campaigns are associated with many metrics, such as impressions, reach, engagement, conversion rates, conversions, cost per result, and many more. Your business needs to establish smart benchmarks and KPIs that are specific to your industry, business circumstance and the nature of each campaign. 
 
If you are a young real estate company, you can’t expect to have the same amount of web traffic and social engagement as Coca-Cola. However, it may be relevant to compare yourself to another real estate company in your market. Even then, consider all the variables that make you different from your competitors before judging yourself based off their metrics.
 
Keep an eye on the metrics you establish as important for your business and do your best to reach your KPIs. If your web traffic is significantly lower month-to-month, you may need to tweak your brand strategy and encourage your audience to visit your website. If your overall ROI has dropped, you may have an inefficient campaign on your hands.  On the other hand, if certain metrics like reach and impressions are low, but your ROI and sales are up, you should not consider this a loss — you may just be targeting a more specific audience, which eliminates unnecessary awareness costs.

Measure the brand marketing funnel

Fingering the pulse of your overall marketing funnel is imperative for every brand. As a customer-centric brand, it should be your goal to make the customer journey (from awareness to purchase) a fluid, accessible, and enjoyable experience for your audience.
 
Brand awareness and consideration can be measured through ad and brand recall tests, brand knowledge and perception tests, favorability surveys, and more. Tools like youtube or email surveys can assist you in gathering this information.
 
Depending on your existing systems, you may be able to measure brand loyalty behaviors through recent or frequent purchases, customer surveys, and product preference data. Brand advocacy behaviors. Likewise, brand advocacy behaviors can be tracked through online communities (like Facebook groups), online reviews, and NPS scores.
 
It can be difficult to track and observe these metrics, but digital tools like Youtube Ads, Facebook Ads, Google Surveys, Qualtrics, and SurveyMonkey can enable you to better keep track of these items. 
 
For instance, you can deliver brand awareness ads alongside brand recall tests asking your audience “Which of these brands have you heard of/seen recently?” with a selection of brands. If they select your brand, your brand awareness campaigns may be working. Tracking every customer’s purchases and frequency of purchase within a powerful CRM tool will allow you to understand brand loyalty behaviors and deliver more personalized messages. As a post-purchase action, you can send a simple survey linked to your CRM. If they don’t respond, follow up!

Conclusion

This is certainly not every measurement of brand equity. You can design and implement tracking studies, track consumer intents and behaviors, implement a brand equity management system, and much more.
 
By monitoring your ROI, your marketing KPIs, and your marketing relationship funnel, you better position your team to understand your brand’s equity and overall performance. 
 
Happy marketing!

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