A simple Google search for ‘brand measurement’ will provide you with countless websites explaining the ’10 critical brand measurement KPIs you should be measuring’ or the ’12 metrics you need to measure brand awareness’. Each company website or platform you visit will explain the importance of using data and data-driven strategies, emphasising that measuring and evaluating data will lead to better decisions and fresh ideas. As insights professionals, we don’t need to be told twice about the importance of data, but does the quantity of metrics measured really matter? Does a higher number of KPIs really lead to better decisions?
Today’s world is overflowing with data and measurement systems providing metrics on everything from potential for consumer recommendations to brand equity. But is the noise of numbers that these competing systems provide worth it? Most companies we meet struggle with choosing the right KPI’s to measure their brand, often they don’t realise that simplifying the metrics will provide a better picture.
So, what are the benefits of using a single metric to measure brand development?
Cut out the noise
When it comes to data, less is often more. It’s not about the quantity of information collected, it’s about collecting good quality, meaningful data that key business decisions can be based on. So, do all your brand development metrics bring value to your business, or are they just numbers, sat in a deck full of pretty charts that will never be looked at again? Figuring out the metrics that matter most can be hard, but nailing down your core measurement systems will provide clarity for the business and a direction for progression in the future.
Cut the costs
What’s more, measuring too many operational KPIs costs the business more than the value of gathered data. Insight teams across every sector face challenges proving the value they bring to the business and face pressure to show the ROI of their activities. By using fewer KPIs insights teams can invest their time in showing the value of the data and insights they generate. Cutting the number of KPIs will reduce operational costs, meaning budgets can be reallocated across the business to drive action based on findings.
Much has been said on the dos and don’ts of communicating with the C-Suite. Their busy schedules and lack of ‘head space’ mean communication needs to be succinct and concise to get your message heard. But it’s hard to communicate in this way if you’re trying to explain 15 different metrics, how they work and what the data shows. By using one core metric for this audience, you will have a clearer message that CEOs can engage with and a reduced number of slides in your Power Point that colleagues will thank you for.
Cut to the chase
It’s easier to take actions based on one clear metric, than it is to take actions based on the findings of 15. Reducing the number of metrics measured will help to streamline your communications and help audiences across the business engage with your message. If data and next steps are easy to understand the business will be united to work together to achieve common goals.
So, how do you go about cutting your brand development KPIs and what metrics should you be measuring? Our essential KPI measurement system, Willingness To Pay (WTP), is a strong KPI for measuring long term brand building, by financially quantifying “brand equity”. For the benefit of the insights team, the WTP score can be combined with other measurement systems linked to sales volume to measure the short term impact of marketing and communications. Using alternative measurements will help you to understand how to build your brand equity and why your brand equity is changing. But these metrics don’t need to be used as KPIs, or communicated to the C-suite. Read our next blog to find out more about why your business should use a single KPI linked to brand equity.
By Robert Beatus, Head of R&D Nepa
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