In economic downturns and cost-saving strategies metrics are essential for showing the return on investment for different tactics in your marketing strategy. The foundation of marketing is to position your brand in your customer’s minds and to achieve greater brand equity. Whichever brand model you choose, Kevin Lane Keller or David Aker; having a framework to measure and understand brand equity is essential. Rather than cutting, think to optimize.
Identifying the metrics to measure customers’ attitudes towards your brand can help you focus your efforts on the right tactics. Branding is all about customer relationships and happy customers are good for profits. However, in order to create happy customers, brands must develop relationships and provide personalized, relevant, and timely information consistently over time. One of the best ways to create brand recall is to continuously stay in front of your customers mind and one of the best ways to accomplish this is through advertising.
It’s important for marketers to incorporate search engine marketing and reputation management into their brand-building strategy. Ninety percent of searchers haven’t made their minds made up about a brand prior to searching and 90% of searchers read online reviews prior to visiting a business.
Building and measuring brand equity for small businesses can be a challenging task and little time and attention is provided, with only about 1% logging into their account on a weekly basis! Utilizing analytics doesn’t have to be difficult. Google provides free tools, training, provides personalized insights and machine learning to help you get the most out of your data. But how do you effectively measure brand building? Marketing analytics is the practice of measuring, managing, and analyzing marketing performance. Understanding and using analytics can help you minimize wasted marketing budget.
Two key metrics for brand building are Reach and Frequency and Share of Voice. Each of these begins with impressions. Impressions are a basic metric used in advertising and it’s important to know how those impressions are distributed across your target market.
Impressions are measured by the number of people (reach) and the frequency that those people see the advertisement. In order to build brand recall, you must stay in front of your customers minds and can benefit from understanding how many different people your ad “reaches” and how often they see the ad. The formula is easy to calculate from advertising data provided in your ad account.
Reach = Number of people who have been exposed to an ad
Frequency = Total Impressions/# People Reached
A second key metric is share of voice. Share of voice helps to measure the impact of your advertising against your competition. It doesn’t capture the effectiveness of your advertising campaign but the share of voice can help provide insight into how you are competing in the marketplace. With statistics like 90% of searchers undecided, having a fair share of voice is important for future growth and brand recall.
Share of voice = total impressions by your business / total impressions in your market
Measuring share of voice many times is a good indicator of future performance. Building relationships with customers takes time and frequent interactions. Having a good framework in place to measure the effectiveness of marketing tactics can help keep a pulse on your branding efforts. If one of the best ways to build brand equity is through building positive experiences with your brand, knowledge is power, and analytics provide the key to that knowledge. Rather than slashing your advertising budget, think about optimizing your advertising through analytics – starting with reach and frequency and share of voice. If your impressions are good but your conversions are not, your metrics have already provided some valuable insights that it’s time to revisit your calls-to-action or ad designs.