Marks, like living things, have different life cycles. They start out exciting and promising, move into a growth phase, stagnate, and then maybe start to lose relevance until, perhaps, they die. That’s why it’s more than advisable to monitor them over time.

A good brand health is a guarantee of achieving customer preference, directly affects sales, getting and retaining the best talent and, ultimately, business growth. Measuring its health allows you to obtain a 360º view of the brand in the market, taking into account customers and competitors. To do this, it is necessary to isolate certain elements, measure them and see their relationship with the business strategy.

The health of the brand is something that starts from within the organization, through the proper transmission of its essence, and reaches the outside, thanks to the action of employees and communication. Having a healthy brand is something that is achieved over time, as there is a cumulative effect on each of the actions that are undertaken. Undoubtedly, the current digital and multichannel environment represents a major challenge in the health care of the brand.

Measuring Brand Health

Health analysis is based on an assessment across a number of key factors that make up a strong brand. Performance in these areas is judged relative to other brands in the industry and their competitive environment.

Determining the appropriate metrics to perform the measurement is going to be crucial to achieving an effective result. They must be simple, but with the ability to adapt to each moment and valid to be able to carry out periodic measurements. Each company may need specific indicators, although to measure brand health there is a common starting point in the combination of three pillars:


  1. Brand Context:
    It starts from the positioning of the brand with respect to its competition and takes into account the variables of coherence and consistency, which ensure its proper implementation, as well as the delivery of its promise.

  2. Brand Equity

    :
    Responsible for identifying brand equity, based on notoriety, preference and financial performance.
  3. Brand Behaviour: Refers to the commitment made by the brand to its audience and its behaviour to reach them.

Key Indicators to Assess Brand Health

The three pillars that make up the health audit can be measured by a combination of indicators, which should be considered on a case-by-case basis. Each is important in its own way and reveals a different aspect of brand health. It may be that brand awareness is great, but purchase intent is suffering. It may be that customers identify with the brand, but their behavior is not so good and can put this relationship at risk. Unless you consider each metric rigorously, you’ll never know what’s hurting and what’s benefiting the bottom line with respect to the brand.

Some of the most common indicators are:

  1. Brand Clarity

The best way to find clarity and focus for your business is to develop a well-defined brand strategy and be consistent in everything you say or do. Discover who you are as a brand through a why, a how, and finally a what.

  1. Brand Consistency

Brand consistency involves a qualitative assessment of all the elements of the visual and verbal identity contrasted with the way in which they collaborate to reflect the brand’s DNA. It can be achieved by repetition or by parallelism.

  1. Net Promoter Score (NPS)

It’s a measure of customer satisfaction and loyalty. It’s based on a single question: How likely are they to recommend the brand? This question is graded on a 10-point scale. Responses between 0-7 are classified as detractors and responses between 9 and 10 as promoters. It can be combined with the Staff Advocacy Score (SAS), which measures the extent to which employees are brand ambassadors.

NPS = % of Promoters – % of Detractors

  1. Purchase Intent

Identify how likely people are to buy from the brand in the near future. It pairs well in conjunction with NPS, because it’s no use if people speak well but then don’t buy. It can be calculated using quantitative and qualitative methods. Perhaps the simplest is through buyer intent surveys.

  1. Customer Retention Rate

Customer retention rate is an indicator of customer loyalty (or the degree to which a company is able to keep acquired customers).

CRR = Number of customers at the start of a period / number of customers who were still customers at the end of a period.

  1. Spontaneous Recall

It measures how many people remember the brand, within their industry, spontaneously. It’s a true indicator of industry leadership because it ultimately means that branding is top of mind when they’re thinking about making a purchase.

Spontaneous recall = (sum of brand mentions / total number of people surveyed) x 100

  1. Market Share

Market share provides a measure of the relative volume a brand has in a given market compared to its competitors.

Relative market share (%) = market share of the organization / market share of the largest competitor.

  1. Online Share of Voice

It measures the relative proportion of online mentions of a brand relative to the competition.

OSOV = (Number of Brand Mentions / Number of Brand Mentions next to all of your competitors) x 100

  1. Sentiment Analysis

It refers to a method of measuring the opinions of individuals or groups, considering the context in which they are made. Based on a scoring mechanism, sentiment analysis monitors conversations and evaluates language and voice inflections to quantify attitudes, opinions, and emotions related to the brand. To measure it, there are different online tools that can be valid in your first steps.

  1. Brand Equity

This is a measure that combines NPS and purchase intent. Its formula is proposed in two steps:

Brand Strength = (Purchase Intent + NPS) x 100.

The result obtained is then multiplied by the spontaneous recall:

Brand Equity = (Brand Strength x Spontaneous Memory) x 100.

How Often to Measure Brand Health

While branding initiatives may have some short-term effects, no short-term model will be able to give a comprehensive understanding of success in building a brand.

For this reason, it is advisable to carry out the analysis once a year or prior to any circumstance (mergers, repositioning, etc.) that requires an in-depth understanding of the situation.

Conclusion

The recurrent measurement and monitoring of brand health, based on well-structured metrics, provides the Management with the necessary data to define strategic and tactical decisions for the future, as well as to detect possible crisis paths well in advance.

Measuring and analysing is the basis of knowledge and investing in knowledge always yields the best returns.

 

Carlos Puig Falcó
CEO of Branward