Determining KPI Metrics For Measuring Brand Impact On Your Business
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Sam Miller
May 4, 2013, 7:00:02 AM5/4/13
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Article Title: Determining KPI Metrics For Measuring Brand Impact On Your Business
Author: Sam Miller
Word Count: 608
Article URL: http://www.isnare.com/?aid=168715&ca=Business+Management
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=168715
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The idea of a brand is deeply rooted in the psyche of managers as being associated with the delivery of tangible products to consumers but today we are increasingly delivering intangible services rather than goods so is branding still relevant. Traditionally a business has been viewed by senior management as split into discrete divisions, sales and marketing, production, HR, IT, legal and accounting. Some divisions created revenue and b the brand identity was important for customer recognition and action needed to be taken to maximize that while other divisions created cost that reduced the brand value and this needed to be cut. Following this methodology would logically result in increased profits.
This led in practice to highly dysfunctional decision making with, for example, IT staff being cut only for decreased effectiveness across the business producing reducing sales generation and increasing costs in other parts of the business.
Decreased profitability was the result of making otherwise perfectly logical business decisions based on KPI metrics.
The Balanced Business Scorecard seeks to address this dysfunctional approach to business management and looks at how the entire business operates as a cohesive, holistic whole. Viewing all divisions of the business as creating value allows for logical rational business decisions that do lead to increased shareholder value and enhanced profitability.
Is measuring traditional brand metrics still relevant?
The blunt answer is yes, the company brand is perhaps more important than it ever has been but how the brand is being used has probably altered greatly as is how the value of a brand is perceived not just by customers but also by shareholders.
For many listed companies the value ascribed to the company brand accounts for more than a third of the company share value. In many instances, brand value accounts for far more than that. The issue is how do we measure brand value and what metrics are available for us to use as part of a Brand KPI tool.
Using financial metrics for brand performance measurement you will find the following as the primary metrics to monitor and analyze:
- Sales Generation - measures brand as a factor in the purchasing decision
- ROI - measures the ROI using the accounting goodwill value and treating it as any other balance sheet asset
- Transaction Value - looks at the contribution from product lines and product mix and the impact of the brand on that contribution
- Growth Sustainability -this is a measure of how much the brand is contributing to sales rate growth without the business introducing further investment to gain that market share.
Financial value is probably the simplest metric to determine as we can extrapolate "goodwill" valuations using accounting and financial data coupled with share price information. At least with share pricing information we have a set finite value that the market is placing on our business and the financial accounting information can give us a basis for determining how much of the price the market will pay for a share is determined by the valuation of the goodwill.
Measuring brand perception and performance is trickier as we dealing with nebulous concepts that we know have an impact but cannot directly measure. Performing customer awareness surveys will help in providing a measure of how well known the brand is with consumers in a given section of the population or target market segment. All of these can be measured but the metrics that are produced are based upon subjective questioning and even more subjective answers.
About The Author: If you are interested in learning more about http://www.strategy2act.com/solutions/brand_metrics_scorecard_excel.htm branding scorecard as brand measurement tool, check Sam Miller new web-site.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=168715
*********************** ARTICLE END ***********************
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Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Sam Miller
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=168715
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=168715
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Determining KPI Metrics For Measuring Brand Impact On Your Business
Author: Sam Miller
Word Count: 608
Article URL: http://www.isnare.com/?aid=168715&ca=Business+Management
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=168715
Easy Publish Tool: http://www.isnare.com/html.php?aid=168715
*********************** ARTICLE START ***********************
The idea of a brand is deeply rooted in the psyche of managers as being associated with the delivery of tangible products to consumers but today we are increasingly delivering intangible services rather than goods so is branding still relevant. Traditionally a business has been viewed by senior management as split into discrete divisions, sales and marketing, production, HR, IT, legal and accounting. Some divisions created revenue and b the brand identity was important for customer recognition and action needed to be taken to maximize that while other divisions created cost that reduced the brand value and this needed to be cut. Following this methodology would logically result in increased profits.
This led in practice to highly dysfunctional decision making with, for example, IT staff being cut only for decreased effectiveness across the business producing reducing sales generation and increasing costs in other parts of the business.
Decreased profitability was the result of making otherwise perfectly logical business decisions based on KPI metrics.
The Balanced Business Scorecard seeks to address this dysfunctional approach to business management and looks at how the entire business operates as a cohesive, holistic whole. Viewing all divisions of the business as creating value allows for logical rational business decisions that do lead to increased shareholder value and enhanced profitability.
Is measuring traditional brand metrics still relevant?
The blunt answer is yes, the company brand is perhaps more important than it ever has been but how the brand is being used has probably altered greatly as is how the value of a brand is perceived not just by customers but also by shareholders.
For many listed companies the value ascribed to the company brand accounts for more than a third of the company share value. In many instances, brand value accounts for far more than that. The issue is how do we measure brand value and what metrics are available for us to use as part of a Brand KPI tool.
Using financial metrics for brand performance measurement you will find the following as the primary metrics to monitor and analyze:
- Sales Generation - measures brand as a factor in the purchasing decision
- ROI - measures the ROI using the accounting goodwill value and treating it as any other balance sheet asset
- Transaction Value - looks at the contribution from product lines and product mix and the impact of the brand on that contribution
- Growth Sustainability -this is a measure of how much the brand is contributing to sales rate growth without the business introducing further investment to gain that market share.
Financial value is probably the simplest metric to determine as we can extrapolate "goodwill" valuations using accounting and financial data coupled with share price information. At least with share pricing information we have a set finite value that the market is placing on our business and the financial accounting information can give us a basis for determining how much of the price the market will pay for a share is determined by the valuation of the goodwill.
Measuring brand perception and performance is trickier as we dealing with nebulous concepts that we know have an impact but cannot directly measure. Performing customer awareness surveys will help in providing a measure of how well known the brand is with consumers in a given section of the population or target market segment. All of these can be measured but the metrics that are produced are based upon subjective questioning and even more subjective answers.
About The Author: If you are interested in learning more about http://www.strategy2act.com/solutions/brand_metrics_scorecard_excel.htm branding scorecard as brand measurement tool, check Sam Miller new web-site.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=168715
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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