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Choosing metrics and key performance indicators

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The first step in measuring and monitoring performance is figuring out what you’re going to measure. Here are some important branding metrics:

 Brand recognition: The extent to which people in your market recognize your brand when they see your product or logo

 Brand awareness: The extent to which people in your market understand what your brand represents or stands for

 Brand consideration: The percentage of customers who would be open to the possibility of buying your brand

 Perceived quality: The extent to which people in your market associate your brand with high quality

 Sales: Metrics that reflect a brand’s success, including the following:Number of salesSales conversion rateCustomer lifetime valueAverage order value

 Net promoter score (NPS): NPS is a measure of brand loyalty on a scale of 1 to 10. NPS may be measured in return sales, referrals, or answers to survey questions (such as “On a scale of 1–10, how likely are you to recommend our brand to a friend or family member?”).

Note that metrics have no specific value attached to them; they’re just measures, like inches and pounds. To make them meaningful for tracking the success of your branding activities, you need to turn them into key performance indicators (KPIs) — specific goals, such as a 10 percent increase in brand consideration or an NPS of 8 or higher.

Launching & Building a Brand For Dummies

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