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Measuring Brand Equity: Metrics and KPIs That Matter
Brand equity, also known as, commercial value is derived from consumer perception of your brand name, NOT the actual product or service you sell. What is your perceived brand value of Starbucks vs. Folgers, for example. Would you pay $6 for a cup of Folgers? The reason Starbucks can do this comes down to their brand equity and consumer perceptions.
We’ve been told our whole lives, not to judge a book by its cover but the reality is, consumers do this every day. They will pay premium prices for the same product if they believe it has a higher value. Businesses who are keen on measuring their brand equity can not only impact consumer perceptions but impact their overall return on investment (ROI) by increasing profit margins, increasing sales, and maximizing customer retention.
To gauge brand equity effectively, businesses should focus on specific metrics and key performance indicators (KPIs).
What is a KPI?
Key Performance Indicators are quantifiable ways to measure performance over time of a specific objectives, targets, or goals.
What KPIs Matter in Developing your Brand Equity?
Brand Awareness: How well do customers recognize your brand? Brand awareness is difficult to measure due to…
