How to Measure Marketing: Brand Strength, Recognition, Image, and Loyalty
One of the main difficulties that marketers face in their work is the lack of material results of their work. They launch new products, concepts, advertising campaigns into the world, and in return they receive only numbers in sales reports.
Many are forced to make decisions and act blindly, as they do not own tools to measure marketing KPIs: brand strength, recognition, image, consumer loyalty, etc. These metrics used to be available only to big companies, but with the spread of the internet, surveys have become cheap and accessible to a wide range of individuals.
Now, in order to carry out a quantitative survey, it is enough to send out letters with a questionnaire on the base of their clients, to place advertising of the survey on the Internet or to order a representative sample in one of the online panels. An online panel is a base of respondents who have agreed to regularly participate in research.
How to Conduct Marketing Research
The easiest way is to contact a specialized agency. But this is a costly pleasure, and you should be sure that the results will help make decisions that will pay off investments. Unfortunately, this is not always the case, so we will understand the guerrilla methods available to all.
Online panels (OMI, Tiburon), survey designers (Surveyymonkey, Survey, Anketolog) or advertising your own Google Forms questionnaire on the Internet are suitable for conducting surveys of potential audiences on the Internet. With targeting, you can flexibly customize the audience you want to poll.
Getting feedback from your own customers is easiest: email-mailings, short questions in messengers or phone calls — all this is almost free.
The only limitation in the use of external sources should be the cost of extracting them relative to the budget of the task to be solved.
Quantitative or qualitative?
All marketing research can be divided into quantitative and qualitative.
Qualitative methods (focus groups, depth interviews) allow answering the question “how?.” Quantitative (surveys, measurements) — “how much?.”
Focus groups and interviews are deeply immersed in detail, but do not answer the question: how many people hold the same opinion? If 9 out of 10 interlocutors do not like something in your product — it does not mean that the same proportion will remain in the general population. Usually, qualitative studies are used to obtain hypotheses, which are then tested by quantitative methods.
Sample size, quotas, and random selection
Quantitative studies use a sample of respondents whose opinions are generalized to all consumers with little error. In order to judge all by a small part of consumers, it is necessary to monitor three important aspects:
- A sample size of at least 100 participants;
- Random selection of respondents;
- Compliance with quotas.
Statistics work well when there are 100 answers. In truth, the law of large numbers is included after the mark of 30 respondents, but too small samples imply assumptions and limitations with which only professional statisticians are familiar.
The chance of selection is the second important principle. One cannot judge the average growth of Russians by the dimensions of one hundred basketball players who train in the yard of your house.
The ideal sample is when each person has an equal probability of falling into the number of respondents. Completely random selection is difficult (it is very expensive), but it should be sought. Online surveys by definition cut off all people who don ‘t use the internet. If your target audience is media assets or pensioners, use the phone call.
Quotas are the proportions of characteristics that must be met in the sample. If you ‘re interviewing a potential audience, make sure men, women, people of different ages and representatives of other subgroups are represented evenly.
Question language is very important
The wording of the questions has an impact on the answers — that ‘s a fact. You can reduce the impact by asking questions that do not contain built-in ratings. If you include an answer option in the question, use all alternatives.
Bad: “Do you think more funds should be allocated for road maintenance?”
Okay: “Do you think more funds should be allocated for road maintenance, as much or less than now?”
Be sure to rotate the order of the answer list. Upper positions are more popular, as attention falls first on them. In single-choice questions, add “Other” and “I find it hard to answer.”
To avoid the impact of the questionnaire and to be able to compare the results of your research with other sources, use standard language. The most common are as follows:
Evaluation of the concept
How much do you generally like or not like the product by its description?
For what reasons do you choose the brand “…..?
What exactly did you NOT like about “…..?
Why wouldn‘t you buy it?
Write, please, 3 titles “….. that first come to your mind?
Which of the presented “….. do you know by name at least?
Do you know the brand “…..?
Please appreciates how important each characteristic is to you when choosing “…..?
How likely are you to recommend the company to your family, friends, and colleagues? Rate on a 10-point scale, where 0 is the minimum rating “in no case will I recommend,” and 10 — “I will certainly recommend.”
To obtain results, it is enough to calculate the response rate or the average value. Consider indicators in subgroups by sex, age, and other factors. Ratings can vary dramatically, and this is a huge field for marketing activities.
Statistical techniques are used to make sure that differences between groups actually exist rather than are obtained due to sampling error. The most common of these are t-tests, chi-square and variance analysis. They are available on the Data Analysis tab of regular Excel.
Remember that the size of each subgroup must be at least 100 people (at least 75). For the study, in which it is planned to compare the assessment of the new concept of pet store among lovers of cats, dogs or fish, you will need 300 respondents, 100 from each group.
Start tracking key figures quarterly. Watch advertising campaigns change brand image and recognition, and improving service leads to increased loyalty.
5 useful techniques
1. Price Testing — PSM (Price Sensitivity Meter or Van-Westendorp method)
Purpose: Determine the level of expected prices.
- What price for this product seems high to you, but for which it is still possible to buy it?
- For what price would you buy this product, considering it a profitable purchase?
Having received the answers, it is possible to build a graph that will display the plateau of psychological prices. Please note — this is not the ideal price for the product. This is the price customers expect.
Review the graphs in subgroups to see which audience is willing to pay more.
2. Attribute Analysis — Importance and Satisfaction
Purpose: explore the strengths and weaknesses of the product.
- Please appreciate the importance of the “parameters?
- Please rate “….. for each of the parameters?
Be sure to explain to respondents which scale to use for evaluation.
After receiving the answers, plot where X-axis is satisfaction and Y-axis is the importance of characteristics.
In the upper right square will fall the strengths of the product, which are important for consumers. This is usually what you need to broadcast in communications.
The properties of the product in the upper left area are important to the audience but are not associated with the brand. They need to be worked on first.
3. Tag Strength — conversion-retention
Purpose: Select a promotion strategy (focus on coverage or conversion).
- Which “….. do you know by name at least?
What brands have you purchased in the last 3 months?
In addition to knowledge and preference, the ratio of these indicators is important. The Conversion-Retention chart shows how well a brand or product converts its own fame into sales.
The mark strength map is a coordinate system for management decisions. It shows the direction in which marketing should work.
5. Product Properties — Conjoint Analysis
Purpose: Obtain an unbiased assessment of the importance of product properties.
Many respondents tend to distort the importance of characteristics when asked about it explicitly. For example, many like to underestimate the importance of price.
Indirect methods are prescribed in such cases. The most advanced of these is conjoint analysis. His idea is to bring the respondent closer to the real situation of choice. The target audience is invited to assess not a divided list of stamps and properties, but the probability of buying a specific item.
It can be a prototype, a card with tariffs or a drawing of a shelf in a supermarket. Each person estimates the probability of buying 5–7 copies, the properties, and the price of which are different.
By correlating estimates, properties, and prices with regression equations, you can determine the weight of each characteristic and its levels, as well as the synergistic effect of the interaction of properties.
In the automotive industry, a car ‘s brand and color are important attributes, but their strength is lost when it comes to a black Mercedes or blue Subaru.
Cheaper to measure than not measuring
By 2019, it had become much cheaper to collect and use consumer information than not. Actual customers will be pleasantly surprised by the attention to their opinions. Potential customers are highly likely to follow your website after completing the questionnaire to learn more about the survey author.
Explore, make the best decisions, find new needs and growth points! Enjoy how your product, service, and communications pull up the brand ‘s commitment index every month.