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What Is The Value Proposition Canvas?

October 25, 2022

Karen Chandler


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When interpreting consumer data insights, it’s essential that it translates into usable and understandable information. The clearer the information is, the better change you have of understanding what makes your consumers tick.

In 2022, consumers are becoming increasingly complex to understand, and to identify what is of value to them. The success rate of new products hitting the market and failing (estimated to be around 72%) is testament to this. However, one effective method to visually map consumer value is the Value Proposition Canvas.

As its name suggests, Alex Osterwalder developed the Value Proposition Canvas to break down value proposition into distinct parts, such as gains and pains. This enables marketers to address each factor individually and build a comprehensive proposition of value to consumers.

Simply put, it’s one of the best tools out there to interpret consumer data and map your products and services to their values and needs. Keep reading to find out how it can help your business!

What are the benefits of the Value Proposition Canvas?

The Value Proposition Canvas is crucial to a marketing strategy as it makes decision making and positioning much more methodical and easier. Using the canvas, companies can reassess strategy and positioning according to consumer values. But what are the benefits of the Value Proposition Canvas to an organisation?

Focused planning

The Value Proposition Canvas is a visual framework which maps out a consumer’s values right in front of you. Whereas ordinary, with ideas flowing in a creative team, it can be easy to lose track of what is important to the consumer. Keeping the canvas in mind removes these product-killing distractions from the equation and keeps businesses focused on what’s important to the consumer.

Improves marketing outreach

Promoting a product or service takes a lot of effort and resources in marketing and branding. At this stage, it’s essential to build a strong brand image in order to cement your business in the consumer consciousness. The Value Proposition Canvas is an ideal framework for doing this, as it highlights what to focus on and builds an action plan around that. This makes efforts to capture the attention of the desired consumer base much more effective.

Strong customer involvement

To have an effective brand, plenty of customer engagement is needed. To do this requires customer orientation which is only truly achieved from understanding and satisfying consumer needs and values. The Value Proposition Canvas connects these factors together, which can easily be extrapolated into a marketing strategy. Through conveying a strong value proposition, a brand can build strong relationships with the consumer.

Simple and practical

The beauty of the Value Proposition Canvas is that it lays out a simple overview of what your consumers really care about. Because of this, it’s a very effective marketing tool in which conveying true value to consumers becomes simple and effective.

The structure of a Value Proposition Canvas

So now you know why the Value Proposition Canvas is so effective, what does it look like and how is it used? At a glance, the canvas is simply a square, representing the value and a circle, representing the customer. It’s a simple structure but conveys the needs of the consumer and how to deliver them. However, within these shapes lie individual segments which each play a key role in determining value.

The customer profile

The customer side of the canvas is comprised of three segments that enable you to think as the end consumer does:

Jobs

Jobs are classed as tasks that the consumer is looking to solve – whether emotional, functional or social. These can be broken down into their basic psychological elements to determine why a consumer devotes efforts to these tasks. For example, social jobs are dictated by external societal conventions, leading to fear, optimism or aspiration. This would include buying an expensive coat for associated status.

Continuing the analogy, a functional job would be wearing said coat on a cold day for warm.

Emotional jobs would relate to how we feel when using a product. E.g. the feeling when we wear the coat.

Defining customer jobs can be a difficult task as they can often overlap, leaving a large grey area. Asking the right questions is the best way to define the jobs of your customer base. But, which are the right questions to ask?

– What function are the customers trying to perform?

– What social goals do your customers want to achieve?

– What are the emotional goals of your customers?

– Which jobs leave them feeling satisfied?

– How do the customers aspire to be perceived?

– How do the customers feel?

Gains

This relates to the positive aspects the customer wishes to achieve from purchase. A gain can be anything from the ordinary to existential. They are factors which encourage a customer to take up the product or service. What questions should be asked to identify the gains?

To define customer gains, try asking:
– Are time, money or effort factors that make your customers feel happy

– What are the expectations of the customer? How can these be managed or surpassed?

– What factors will simplify the work or wider life of your customer?

– What are the social aspirations the customer is seeking?

– What extras are they looking for?

– How would these gains improve the customers lifestyle?

Pains

These are the factors which prevent customers from finishing a job. These can range from light to severe but always block the customer from achieving their goal. Successful products or services typically unblock the customer’s pains and satisfies their jobs. This is the goal to which to aim for. But what are the questions which identify customer pains?

Questions which help to identify these blocks include:
– What does the customer perceive as costly?

– What makes them feel bad?

– Why don’t the current solutions suit the customer?

– What are the primary challenges your customer is facing?

– What social factors does your customer fear?

– Does the customer have financial, social or technical fears?

– What is stopping the customer from overcoming these fears?

The value map

Once you have completed the portrait of your customer, their values and underlying traits, you can map this into the square part of the canvas, which is where the value proposition is formed. In this, the product features can be constructed around what has been discovered about the customer, including its FAB’s- features, advantages and benefits. Keep in mind that the aim here is to fulfil the profile in the circle. The square is constructed of three distinct areas, products and services, pain reliever and gain creators.

Products and services

What features and products will be provided in order to complete their jobs? This is the section to list all these factors down. This is a good place to map out product or service variants also, including varying packages or trail periods.

Pain relivers

Building on the identified causes of pain to customers, this section focuses on how to relieve those blocks- as the name suggests. These relievers may vary for the various pains identified, so expect to have multiple relievers. It’s important to adopt the KISS philosophy here and keep it simple. The canvas is designed to keep things simple and straightforward. When listing the relievers, short notes are a lot more effective than extensive details.

What questions can guide identification of pain relievers?

– What savings does the product or service provide? Time, money or effort?

– Is the emotional state of the customer improved?

– Does it build on the shortfalls of existing solutions?

– Does it unblock the difficulties faced by the customer?

– Does the product or service allow the customer to overcome the social consequences and fears that hold them back?

– Does it reduce the risk the customer is afraid of?

Gain creators

Perhaps most importantly, this is the part where the value built around the product or service is conveyed back to the customer. Think of how this helps the customer achieve their goals. It’s important to keep this part simple and list everything that improves the user experience.

Questions to ask in this stage of the process include:

– Can the product or service create savings?

– Will this make the customer happier?

– Does it meet the expectations of the customer?

– Is it desirable to the customer?

– Does the product reflect the values of the customer?

– Will it create positive results amongst the customer base?

– Does it exceed the current solutions?

How to fill the Value Proposition Canvas

With an understanding of what each segment of the canvas does to help build a value proposition, the next step is to understand how to fill the canvas to one’s own ends.

1. Begin by choosing a customer segment to focus on. This is something that should already be established with detailed pen portraits.

2. List all the jobs relating to that segment and then rank based on priority to said segment.

3. Identify the segments pains and rank them.

4. Identify the segments gains and rank them.

5. Pick the top 5 most important pains and gains that affect the most important jobs.

6. Moving over to the square part of the canvas, list all the benefits of your product.

7. Based on the benefits, break them down into two lists.

8. List the gain creators

9. List the pain relievers

10. Analyse these creators and relievers, select the top three that make a positive impact to the customer segment.


11. Differentiate yourself from the competition and list all the ways you are better.


12. Combine the produced information to form value propositions that will resonate with your customers, build trust and make them brand advocates.


13. Check that the value propositions are free of any confusing jargon and that the message is easily understood.


14. Test the value proposition with the customer segment. Either with a launch or more methodically with focus groups and other testing methods.

How to get a fit between the Value Proposition Canvas and customer profile

Getting a fit between your customer profile and the value proposition canvas can be a challenge but should never be forced. Instead, the best way to do this is by putting yourself in the customers position to understand their pains and gains. It’s about asking as many questions about said customer to build up an accurate profile. The more accurate the profile is, the closer the fit when mapped on to the canvas.

One this is completed, it’s important to reach out to this customer segment to validate findings and assumptions. From here, businesses can gauge and make adjustments on how their proposition fits to said segment. This process should be repeated until the fit is the best it can be.

How to use the Value Proposition Canvas to identify opportunities for differentiation

Once the value proposition canvas has been mapped, opportunities can be identified to differentiate your product or service. To do so, pick 3-5 of the gain creators and pain reliever from the canvas. Form a proposition around how the benefits will solve the pains and jobs they need solving. Then it’s a matter of differentiating from competitors.

For example, taking Nepa, if a job to be done by our clients is forming a marketing strategy, a pain is lack of data and budget but a gain of purchasing consumer data insights creates gains of higher sales, creating brand presence and generally making the research process easier, this is the basic of building the proposition.

Pain relievers would be quicker, simpler and more accurate data insights and a gain creator would be better connecting to potential customers.

This establishes a clear profile of which customers to be targeting and value propositions can be constructed appropriately.

When to use the Value Proposition Canvas

If you’re not sure what your value proposition is, or if you want to ensure that your value proposition is clear and concise, then a value proposition canvas can be a helpful tool. Additionally, if you’re looking to create a new value proposition or improve an existing one, the canvas can be used as part of the process.

Common occasions when a business may choose to utilise a value proposition canvas include:

– Upon launching a new business

– Upon launching a new product or service

– When revising a product or service that’s not performing as well as expected

– After executing market research for a product or service

Tips and tricks for using the Value Proposition Canvas

Treat each component as a separate entity

The Value Proposition Canvas breaks down purchase factors into separate entities. As such, you can only achieve a full understanding of your segment’s value proposition by completing it fully. Thus, to truly turn this product into a desire, it’s important not to skip any one segment.

Run every customer segment through this canvas

A classic business mistake is to believe that one size fits all, when it comes to value proposition. However, each segment will have their own pains and gains which could trigger completely different values. As such, a canvas should be undertaken for each segment the business has. Furthermore, this makes positioning much easier due to being more specific.

Put yourself in the customer’s position

From mapping out segment pains and gains in this much detail, it puts businesses in a unique position whereby they can put themselves in the customers predicament. To think as the customer does enables a business to know what the customer expects from the product and how it will satisfy them. A good way to start this process is by asking the 5 W’s:

1. What are they doing?

2. Where are they going?

3. What tools are they using?

4. Who is this segment?

5. When do they do this task?

Focus on what the customer needs

It’s important to bear in mind that not all customer pains and gains can be met. I can sometimes be harmful to a product’s success to do this. As such, focus on the top priorities that the business can meet. This helps to set goals when developing the product or service.

Closing thoughts

In conclusion, the Value Proposition Canvas is a powerful tool for any business. By clearly outlining the problem that your product or service solves, you can more easily identify and target your ideal customer.

Additionally, by articulating your unique solution and the results it produces, you can more effectively communicate the value of your offering. Ultimately, the Value Proposition Canvas can help you to simplify and streamline your sales process, making it more efficient and effective.

Get in touch with us today to learn more about how Nepa can assist your enterprise with valuable consumer insights data.

Case Study
Back

Telenor trusts Nepa to understand their business needs

The story

Telenor is one of the world’s largest mobile telecommunications companies, with operations worldwide. Based in Norway, the company has 172 million subscribers across Scandinavia and Asia.

But how does Telenor maintain their position? By fully understanding their brand insights, and where they should be heading next.

A long-term partnership with brand tracking experts Nepa has resulted in B2B and B2C
trackers being set up in key markets, with regular insights meetings to help Telenor
make the most of their data.

“We really appreciate the collaboration with Nepa, as they are genuinely interested in understanding our business challenges. We also love the Nepa dashboard, which is a valuable, hands-on tool to quickly help us with market insights.”

— Jessica Håkansson, Insight Manager, Telenor Sweden AB.

The plan

Over seven years, Nepa has set-up continuous brand trackers for three of Telenor’s key markets – Sweden, Denmark, and Finland. These trackers collect insights on all major KPIs including preference, NPS, and awareness, and offer Telenor the data to measure the changes in their brand across time. But pure data was not enough. They needed to be put into context, and have clear, actionable next steps.

Nepa were really driven to understand and meet Telenor’s business needs. Regular meetings with different teams in different markets were set-up so the two companies could ensure that the trackers were collecting all of Telenor’s business critical insights.

The result

Frequent meetings between the two teams have helped Telenor to really drill down into their insights. Nepa understands Telenor’s business needs, how they work, and Telenor’s working language, so they can make sure that reports are immediately relevant to the business. With such a close working relationship, it means that Nepa can also use this knowledge in other types of projects for Telenor. For example, using Nepa´s advanced package analysis whenever Telenor needs to create the right package deal, at the right price, for the right people.

By being flexible and really listening, Nepa can offer Telenor the real-time data they need to make faster, better business decisions.

“This insight analysis will play a crucial role when building our future strategy. Understanding customer preferences, attitudes, and behaviour is key for us to build a strong brand, to generate trust and create relevant services as a mobile, broadband, and TV operator.” said Jessica Håkansson, Insight Manager, Telenor Sweden AB.

The result

7

years

3

key markets

Our Approach

We convert data into
opportunities for growth

Marketing is an investment

Many brands are seeing budget cuts. But focusing only on short-term goals means you can miss the contribution of long-term brand building to growth. To demonstrate the ROI of your marketing you need a team that is experienced in linking your brand KPIs to your company’s financial performance, over time. We help you make those connections, which are essential for making marketing decisions that drive growth.

Ensure brand relevance

As technologies, trends, and industries shift, so do your customers. You need to keep on the pulse of people’s perceptions and behaviours by understanding how your brand is used, its personality, and how your communications are working in order to make adjustments over time.

Select the right channels

Assessing the strength of each individual media channel helps you to focus on the right investments. But most media measurement does not integrate and evaluate all the different channels now available. Our Media Mix Modelling assesses the ROI of all media investments including social, allowing brands to make decisions around budgets for every media, execution, campaign duration, and creative.

Increase market share

There are several ways to increase market share. Sell more to existing customers. Expand your customer base. Sell through new channels. However, in order to choose the right option, you need to understand your potential customer base.

Our Market Segmentation gives you clear, useful information on both current and potential customers. It splits people into different groups based on needs and values, offering insights on how to grow your brand in these different markets.

Measure your performance

As media changes, so do people and their behaviour. To improve performance, you need to evaluate and evolve your campaigns constantly, so that you can make and measure adjustments over time. We help you find the right mix of channels, messaging, creative, and format to increase your impact and ROI.

OUR WIDER OFFER

Adapt to win

Our 360-degree, continuous approach shows how consumers think, helps realise growth potential, and demonstrates return on investment.

Marketing Mix Modelling

Adjust activity in near real-time with models that are continuously learning from your media activity, sales performance, and brand health.

Campaign Evaluation

Running campaigns is all about constant evaluation and evolution. Find the right mix of channels, messaging, creative, and format to get the most out of your communications.

Custom Modules

Use additional modules to manage pricing, brand personality, brand assets and category drivers and place customers at the heart of your marketing decisions.

CONTACT

Get in touch

Case Study
Back

GANT trusts Nepa to help it grow

Bordeaux , Aquitaine / France - 11 25 2019 : Gant sign store luxury shop in street boutique

The story

Telenor is one of the world’s largest mobile telecommunications companies, with operations worldwide. Based in Norway, the company has 172 million subscribers across Scandinavia and Asia.

But how does Telenor maintain their position? By fully understanding their brand insights, and where they should be heading next.

A long-term partnership with brand tracking experts Nepa has resulted in B2B and B2C
trackers being set up in key markets, with regular insights meetings to help Telenor
make the most of their data.

“We really appreciate the collaboration with Nepa, as they are genuinely interested in understanding our business challenges. We also love the Nepa dashboard, which is a valuable, hands-on tool to quickly help us with market insights.”

— Jessica Håkansson, Insight Manager, Telenor Sweden AB.

The plan

Over seven years, Nepa has set-up continuous brand trackers for three of Telenor’s key markets – Sweden, Denmark, and Finland. These trackers collect insights on all major KPIs including preference, NPS, and awareness, and offer Telenor the data to measure the changes in their brand across time. But pure data was not enough. They needed to be put into context, and have clear, actionable next steps.

Nepa were really driven to understand and meet Telenor’s business needs. Regular meetings with different teams in different markets were set-up so the two companies could ensure that the trackers were collecting all of Telenor’s business critical insights.

The result

Frequent meetings between the two teams have helped Telenor to really drill down into their insights. Nepa understands Telenor’s business needs, how they work, and Telenor’s working language, so they can make sure that reports are immediately relevant to the business. With such a close working relationship, it means that Nepa can also use this knowledge in other types of projects for Telenor. For example, using Nepa´s advanced package analysis whenever Telenor needs to create the right package deal, at the right price, for the right people.

By being flexible and really listening, Nepa can offer Telenor the real-time data they need to make faster, better business decisions.

“This insight analysis will play a crucial role when building our future strategy. Understanding customer preferences, attitudes, and behaviour is key for us to build a strong brand, to generate trust and create relevant services as a mobile, broadband, and TV operator.” said Jessica Håkansson, Insight Manager, Telenor Sweden AB.

The result

7

years

3

key markets

Our Approach

We convert data into
opportunities for growth

Marketing is an investment

Many brands are seeing budget cuts. But focusing only on short-term goals means you can miss the contribution of long-term brand building to growth. To demonstrate the ROI of your marketing you need a team that is experienced in linking your brand KPIs to your company’s financial performance, over time. We help you make those connections, which are essential for making marketing decisions that drive growth.

Ensure brand relevance

As technologies, trends, and industries shift, so do your customers. You need to keep on the pulse of people’s perceptions and behaviours by understanding how your brand is used, its personality, and how your communications are working in order to make adjustments over time.

Select the right channels

Assessing the strength of each individual media channel helps you to focus on the right investments. But most media measurement does not integrate and evaluate all the different channels now available. Our Media Mix Modelling assesses the ROI of all media investments including social, allowing brands to make decisions around budgets for every media, execution, campaign duration, and creative.

Increase market share

There are several ways to increase market share. Sell more to existing customers. Expand your customer base. Sell through new channels. However, in order to choose the right option, you need to understand your potential customer base.

Our Market Segmentation gives you clear, useful information on both current and potential customers. It splits people into different groups based on needs and values, offering insights on how to grow your brand in these different markets.

Measure your performance

As media changes, so do people and their behaviour. To improve performance, you need to evaluate and evolve your campaigns constantly, so that you can make and measure adjustments over time. We help you find the right mix of channels, messaging, creative, and format to increase your impact and ROI.

OUR WIDER OFFER

Adapt to win

Our 360-degree, continuous approach shows how consumers think, helps realise growth potential, and demonstrates return on investment.

Marketing Mix Modelling

Adjust activity in near real-time with models that are continuously learning from your media activity, sales performance, and brand health.

Campaign Evaluation

Running campaigns is all about constant evaluation and evolution. Find the right mix of channels, messaging, creative, and format to get the most out of your communications.

Custom Modules

Use additional modules to manage pricing, brand personality, brand assets and category drivers and place customers at the heart of your marketing decisions.

CONTACT

Get in touch

Case Study
Back

VARNER trusts Nepa to uncover its potential

VARNER logo superimposed over many models of jeans from different denim, texture, color hang on hangers

The story

Norwegian company VARNER is one of the largest retailers in Scandinavia, consisting of retail chains Cubus, Dressmann, Dressmann XL, Bik Bok, Carlings, Volt, Junkyard, and Levi’s store. The company has nearly 8,500 employees, 1,200 stores, and 6 eCommerce websites in Norway, Sweden, Finland, Iceland, and Denmark.

How did VARNER go from one store in Oslo back in 1962, to this Nordic clothing empire? By uncovering the brand’s potential.

A long-term partnership with brand tracking agency Nepa has enabled VARNER to increase their understanding of their brands, their markets, and their potential areas for growth.

“Your insights meetings are always so useful. Outputs are clear, you create a lot of engagement, and there are always interesting discussions.”

— Knut Vidar Nilsen, Chief Marketing Officer

Dressmann Group Shot

The plan

VARNER wished to increase their understanding of how each of their brands performed in their main markets, and to uncover where the areas for growth lay. Working together, a continuous brand tracker was identified as the best option, as it would offer VARNER an uninterrupted holistic view of their brands, their markets, and their opportunities.

Actionable outcomes were an essential part of the project for VARNER. Quarterly reports and insights meetings were set up between the two teams in order to dig down into current hot business topics and areas of potential. In order for VARNER to make the most of their data available outside of these times, a dashboard was set up for immediately accessible business insights.

The result

VARNER not only now have insights on how their individual brands are performing via Nepa’s brand tracking dashboard, but regular consultation meetings with Nepa have highlighted key areas to strengthen and grow. Nepa has a long history with VARNER, thoroughly understands their business, their ways of working, and competitive landscape. This means that in these meetings Nepa can use their industry knowledge to open up discussions on potential areas for action, and adjustments in business strategies and tactics can be based on hard facts.

The brand tracking service provided by Nepa has enabled us to monitor brand performance on a chain and group level. This enables us to identify growth potential for individual chains and for the group, as well as learning more about how individual brand concepts are performing and how they potentially could be strengthened.

The brand tracking is one of several important insight elements we use to develop our brands, and in combination it becomes very important.” said Knut Vidar Nilsen, Chief Marketing Officer.

The result

6

brands tracked

3

markets

Our Approach

We convert data into
opportunities for growth

Marketing is an investment

Many brands are seeing budget cuts. But focusing only on short-term goals means you can miss the contribution of long-term brand building to growth. To demonstrate the ROI of your marketing you need a team that is experienced in linking your brand KPIs to your company’s financial performance, over time. We help you make those connections, which are essential for making marketing decisions that drive growth.

Ensure brand relevance

As technologies, trends, and industries shift, so do your customers. You need to keep on the pulse of people’s perceptions and behaviours by understanding how your brand is used, its personality, and how your communications are working in order to make adjustments over time.

Select the right channels

Assessing the strength of each individual media channel helps you to focus on the right investments. But most media measurement does not integrate and evaluate all the different channels now available. Our Media Mix Modelling assesses the ROI of all media investments including social, allowing brands to make decisions around budgets for every media, execution, campaign duration, and creative.

Increase market share

There are several ways to increase market share. Sell more to existing customers. Expand your customer base. Sell through new channels. However, in order to choose the right option, you need to understand your potential customer base.

 

Our Market Segmentation gives you clear, useful information on both current and potential customers. It splits people into different groups based on needs and values, offering insights on how to grow your brand in these different markets.

Improve campaign performance

As media changes, so do people and their behaviour. To improve performance, you need to evaluate and evolve your campaigns constantly, so that you can make and measure adjustments over time. We help you find the right mix of channels, messaging, creative, and format to increase your impact and ROI.

OUR WIDER OFFER

Adapt to win

Our 360-degree, continuous approach shows how consumers think, helps realise growth potential, and demonstrates return on investment.

Marketing Mix Modelling

Adjust activity in near real-time with models that are continuously learning from your media activity, sales performance, and brand health.

Campaign Evaluation

Running campaigns is all about constant evaluation and evolution. Find the right mix of channels, messaging, creative, and format to get the most out of your communications.

Custom Modules

Use additional modules to manage pricing, brand personality, brand assets and category drivers and place customers at the heart of your marketing decisions.

CONTACT

Get in touch

Webinars
Back

Step up your brand tracking

May 26, 2022

Nepa Finland MD Eeva Karhu speaking about Data Driven Brand Management

Karen Chandler


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After two long years, Nepa live events are back! Last week Finnish MD Eeva Karhu hosted a hybrid event in Helsinki on the theme of Brand Tracking, and how to make the most of your data. But why is this important?

What should you know before starting your Brand Tracking?

Eeva Karhu presenting at the breakfast event about Brand Tracking

Brand Tracking isn’t a secret ingredient – it’s used by many companies. However, are they doing it right? Our experience is that companies are often under-using their brand tracker and aren’t taking full advantage of the insights being uncovered.

In a tumultuous economic environment, brand tracking is more important than ever. It can help CMOs and marketing teams quickly spot and address the challenges of an ever changing landscape. Additionally, with consumers now being able to compare brands online in an increasingly competitive environment, companies need to nail their positioning and establish new digital business models.

Differentiation is important, but it’s not easy. To stand out, brands need clear, actionable insights. You want to know what consumers think (about you!), and if they change their minds. That’s why tracking is so important.

There are two different types of Brand Tracking formulas, The Report Card and The Business Tool.

  • The Report Card is best used when a client is focused on just a couple of KPIs. It’s mainly used to keep track of the marketing department’s decisions on brand. These are used to measure a brand, target groups, and attributes connected to the brand strategy.
  • The Business Tool does all that and even more! It aims to understand the wider market and the ‘why’ behind consumer decisions. Brands can identify new business opportunities as they arise, answer the questions posed to your business, and choose the right outcome. This type of tracking is used daily, and it involves people outside of marketing and insights; the C-suite, the finance department, and customer services.

READ ALSO: What is brand tracking and why is it important?

What is the best practice for Brand Tracking?

We believe that a successful brand tracking should not only be used as a Report Card but also serve as a Business Tool, with continuity being key. Continuous brand tracking can assess marketing efforts and measure both media efficiency and long-term brand building. However, the key brand tracking factors include:

  • Proactivity This covers competitors and consumers beyond your target group. This is how your company can learn and see what competitors are doing right and wrong, and what consumers are being swayed toward.
  • Longevity This allows for Brand Tracking to withstand changes in the market. Even when your brand strategy changes, your Brand Tracking can stay on course.
  • Engagement This aspect will create questions from all levels internally and boost the usage of the data within the business.

To understand how to get the most value out of Brand Tracking, some fundamental questions must be answered first: What is playing on your stakeholders’ minds? What are your business goals? Where are you threatened? Where are the opportunities? Think about your planning cycle, when do budgets come out? When do decisions on media plans happen? With this knowledge you know exactly when certain insights are needed.

There are several different Brand Tracking modules to consider. If you’re focusing on communication, you should consider aspects such as your brand funnel to know whether your brand is moving in the correct direction, demographics to understand if extra work is needed to regain or bolster the targeted audiences, and media habits to decide which media channels are most successful. This is used best in a company with high media spend, as it monitors communication effectiveness, whilst offering the ability to optimise the media and develop new, more effective creatives.

If your brand wants to focus on positioning, brand tracking is best. It can monitor exactly where both you and your competitors sit in the landscape, alongside how everyone’s marketing activities are affecting your brand image. The best modules for looking at brand positioning include the brand funnel and demographics, as well as drivers to understand what the brands main associations should be. Brand Touch, on the other hand allows you to recognise if your brand is developing according to the positioning strategy, whilst Willingness to Pay shows you how much a consumer would pay for the service and to find out the real value of the brand. It’s best practice to look at your metrics before and after the campaign.

Getting the correct technical set-up is just the start; you also need to grow a sense of ownership and engagement to guarantee that your organisation uses your Brand Tracking to its full potential and makes the most of the investment. Get everyone on board, with start-up meetings and workshops, keep it simple with a dashboard designed for marketers, and keep it interesting with meetings around challenges the brand faces. Don’t just present the data.

For more information on our Brand Tracking, reach out to us at hello@nepa.com.

COMING SOON:  Nepa Originals report: ‘A view from the future – Outlook on what the future holds from foresight experts.’

Blog Posts
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Nepa at Quirk’s London: An event for Marketing Research and Insight Professionals

May 03, 2022

Sam Richardson


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What do consumers and shoppers want from brands in the future? Together with Unilever and DS Smith we’ll answer this question at Quirk’s London. Join our session to find out what we should be planning to make sure our brands are future proofed. With an Insights and Marketing expert perspective we’ll look at what the next 10 years has in store for a variety of industries including Food & Drinks, Health & Wellbeing, Entertainment as well as sustainability.

If you are going to be at  Quirk’s, London, please come by and join the panel discussions on Thursday May 5th 2022 at 10:45 to 11:15 GMT. Follow the link for more information and details.

Blog Posts
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Nepa Brand Impact Series

January 26, 2022

Sam Richardson


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Insights are crucial for brands and it’s essential to know what to measure and how to measure it. During the last couple of months we have published 4 blog posts about brand – the Nepa Brand Impact Series by Robert Beatus, Head of R&D and John Palm, Senior Analyst R&D.

 

Read the entire series here:

How to measure your brand strength.

Block the background noise, listen to the music. Making your brand data more accurate and actionable.

Forget me not, how to stand out and be remembered.

Introduction to Brand Touch – are you Batman or the Joker?

 

Want to know more? Contact us today and our brand experts will help you!

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How to measure your brand strength

January 14, 2022

Karen Chandler


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The US Engineer W. Edwards Deming once said, “just because you can measure everything, doesn’t mean you should”. In other words, if you’re training to run a marathon you would be interested in measuring your time and resistance, and not in how much you can bench press. Only by knowing what metrics are relevant to track your improvement, can you define an effective workout and reach your goals.

The same goes for brands. If you want to be able to improve your brand strength, you need to know what to measure and how to measure it. This is what we call finding the right KPIs. Most companies we meet struggle with choosing the right brand measures. They often rely on too many metrics (falling into the trap W. Edwards cited) and end up having too much data without a clear direction.

So how do you identify which are the right metrics for your brand? Let us guide you through four different approaches which brands can use to identify which KPIs are truly relevant for them to drive growth.

1. The core metric

Through brand tracking we can identify one or a few core KPIs; among the most common Salience, NPS, Affinity, Preference. There are several frameworks that can be used when selecting these KPIs – such as Aaker’s, Keller’s, or Sharp’s – but the main criteria is to evaluate external effectiveness and internal actionability. You need to know that improving the selected KPI will give you the benefits to business you desire and the required actions to improve it.

Relying on one selected KPI based on brand tracking has multiple benefits. Nailing your core measurement system provides clarity to the business and a direction for progression in the future, on top of that measuring too many operational KPIs has a cost. By using fewer KPIs insights teams can invest their time in showing the value of the data and insights they generate. Fewer KPIs reduces operational costs, meaning budgets can be reallocated across the business to drive action based on findings.

This is the most straightforward approach. However, its simple nature only focuses on one part of the picture and might not provide you with a holistic view.

2. The ultimate metric

This is an aggregated approach where multiple measurements are combined into one index. Through this approach you can identify one brand index based on several brand tracking metrics – such as centrality and distinctiveness – that can be used across markets and categories. These indexes are based on a combination of different KPIs and provide a holistic concept, supporting one common view of development.

If identified correctly, the same index can be used across markets and functions. Attentions will automatically be focused on the weakest metric, for each market to get the best effect on the total index, which often leads to the correct priorities.

3. The growth metric

American business magnate Warren Buffett once said that pricing power is “the single most important decision in evaluating a business”. Using an equity based KPI allows you to understand how your business’ activities connect to financial performance, a connection which is essential for making business decisions that drive growth. Our third approach measures pricing power as Willingness to Pay, which evaluates consumers’ willingness to pay a higher price for a product or service versus the competition through Choice Based Conjoint. By using WTP, sales are related to market share, guiding, and validating all brand building efforts directly to business growth.

It’s easy to connect this KPI within the organization. It is often beneficial to complement the WTP KPI with a more sales oriented KPI, such as market share, to measure short term financial effects of communication as well.

4. The engagement metric

Engagement can be based on different variables: word of mouth, mentions, likes, follows, shares, comments, click-throughs, organic search, website visits and so on. By tracking and combining these different elements you can obtain your engagement KPI.

This approach gives you direct access to consumers and immediate feedback. However, it isn’t the most accurate KPI as it’s based on so many channels, so it is best used in combination with other KPIs. At Nepa, we’re developing a Brand Health index using Primary Dynamic Factor Analysis, which can identify the underlying pattern of change in several measurements, removing the “noise” in the data to uncover actual brand development.

Ultimately, if you pick the wrong KPI for your brand objectives or too many KPIs to keep track of, you won’t be able to measure whether your strategy is effective or not. You won’t see the result that you’re expecting to see. But by training the right “brand muscle” and keeping track of your improvements you will be able to reach your end goal.

By Robert Beatus, Head of R&D at Nepa

Want to know more? Contact us today and our brand experts will help you!

 

Read also other Nepa Brand Series blog posts:

Block the background noise, listen to the music. Making your brand data more accurate and actionable.

Forget me not, how to stand out and be remembered.

Introduction to Brand Touch – are you Batman or the Joker?

Blog Posts
Back

Svenska Spel Selects Nepa for Brand Tracking & Campaign Measurement

September 20, 2021

Sam Richardson


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STOCKHOLM, Sweden (September 21st, 2021) – Nepa, a leading Consumer Research and analytics company, has been chosen by Svenska Spel Tur to implement and run a continuous brand tracking and campaign measurement program to help Svenska Spel Tur understand and develop its brands and monitor competitor performance on the Swedish market.

“The brand tracking and campaign measurement program provided by Nepa has enabled us to reach higher levels of insights and to drive data-driven progresses and is therefore a perfect match to us and how we want to develop our brands in the future.” said Mimmi Lagerquist, Market Analyst at Svenska Spel.

“We are very proud to be partnering with Svenska Spel and to help implement a continuous Brand Tracking and Campaign Measurement program which enables the development and growth of so many well-known brands through a close working partnership.” said Ulrich Boyer, CEO at Nepa.

The brand tracking and campaign measurement program’s initial term is 4 yrs.

About Svenska Spel

Svenska Spel is Sweden’s leading gaming company. The Svenska Spel Group wants gaming to be enjoyed by all and includes three business areas: Sport & Casino with well-known brands such as Stryktipset and Oddset, Tur with popular brands such as Triss and Lotto, and Casino Cosmopol & Vegas with three international casinos and Vegas video lottery terminals in restaurants and bingo halls. Svenska Spel is the country’s biggest sponsor of Swedish sport, at both elite level and grass-roots level. The company has around 1,400 employees with its head office in Visby. For more information, go to www.svenskaspel.se

 

Contact information:

Ulrich Boyer, CEO

Maria Skolgata 83, 118 53 Stockholm, Sweden

+46 708 22 66 18 ulrich.boyer@nepa.com

 

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Mango partners with Nepa for brand tracking and campaign measurement

July 20, 2021

MANGO Logo

Sam Richardson


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LONDON, United Kingdom (July 20th, 2021) – International fashion retailer Mango has partnered with brand health experts Nepa for brand tracking and campaign measurement in 5 key markets across Europe and the US.

Nepa will track consumer perceptions of the brand and its competitors to help Mango’s brand strategy team and communication department understand the perceptions and impact of the company’s marketing campaigns.

Nepa was chosen because of its expertise in brand tracking, brand value and brand health, data analytics and visualization capabilities. The partnership will focus on defining the attributes and values that are important to Mango’s target groups and how to communicate them in the most efficient way. The goal is to help Mango develop its communications strategy in order to maximise the long and short term impact on brand and sales.

Lindsay Parry, Managing Director at Nepa UK said, “Knowing your perceived strengths and weaknesses in the eyes of the consumer means you can pull the right levers in how you define your brand and boost your communications. We’re delighted to have been chosen to help Mango take this important step in optimising their communication strategies.”

Ingo Kerstjens, Brand Strategist at Mango said, “Our partnership with Nepa started because we wanted to gain a clear picture of how we are perceived by fashion buyers. Through its crystal-clear insights and to the point analysis, Nepa is giving us fresh eyes on where our brand is heading and where we need to go to build growth”.

About MANGO
MANGO was founded in 1984 and is today one of the leading fashion groups in the world. Based in its city of origin, Barcelona, the company has an extensive store network of 803,000 m2 in 110 countries.

From its “El Hangar” Design Centre in Palau-solità i Plegamans, every year it designs more than 18,000 garments and accessories for wearing the season’s trends. The company closed 2020 with sales of 1.842 billion euros. More information at http://www.mango.com

Contact information:
P-O Westerlund, CEO
Nepa AB, Maria Skolgata 83, 118 53 Stockholm, Sweden

+46 706 404 824 p-o.westerlund@nepa.com

Want to know more? Contact us today and our brand experts will help you!