Brand value is a key consideration of online retailers. How to determine, establish and measure brand value are questions of importance to retailers wishing to benchmark their business and ascertain its strength as related to other players in the sector.
Determining Brand Value
In order to measure the ongoing brand value in an online context, it is essential to determine brand position and brand equity. These depend on customer awareness and perceived quality or other attributes that encourage loyalty and brand associations.
Online brand value can be measured by the:
Some other subtle factors should also be taken into account, including the evaluation of data on:
The major determinant of long-term brand value remains constant; brands have to move with the customer. Effective multichannel branding has more to do with the ability to be agile and move with customers and less about new brands and new technologies to communicate brands.
Assessing Brand Position and Value
Indicators can be set to measure long-term brand value. Examples of where indicators may be set include:
In setting indicators we want to know:
In reviewing the brand, company management wish to determine:
Establishing an Online Budget
Many retailers when first considering an online presence have little awareness of the investment required to ensure success. When setting a budget for developing a brand online, the following expenses need to be taken into account:
Measuring Online Success
Brand valuation is regarded by many marketers as potentially offering the long-elusive definitive “proof” of the business value of marketing’s brand-focused efforts. Unfortunately, achieving a viable measure of brand value has proven to be just as elusive.
More than ever before, today’s marketers are finding themselves increasingly responsible for demonstrating the financial outcomes of their brand strategies and initiatives. Brand valuation has generated much discussion inside and outside of the marketing community as a possible means to this end.
While brand valuation may at first glance appear to be a promising, finance-centric approach to measuring marketing impact, it is not without significant risk. The process of establishing a credible value for an intangible asset such as a brand is rife with thorny issues of definition, methodology, repeatability, and consistency. When considering brand valuation, keep the following in mind:
When brands reach the tipping point where sales begin to slide because customers no longer resonate with the brand’s value proposition, it’s time to put your finger on the pulse of your brand and determine the long-term outlook for brand health.
A comprehensive brand audit will often reveal new grow opportunities for your brands, and new ways to make your brand resonate with a new generation of target customers who will represent your brand’s bigger future.
If you believe your brand could use a check-up, take the time to make a close examination of the strengths, weakness, opportunities and threats facing brand health. A comprehensive brand audit will include a thoughtful examination of the following:
This includes distribution channel partners, independent sales reps, strategic supplier partners and most importantly customers. Using social media tools is a very effective way to monitor brand health with partners and customers.
Gaining deep insight and understanding of how all stakeholders within your organisation perceive the brand’s value proposition and meaning is important because they’re in direct contact with customers; and it’s equally important for management, product development, manufacturing and other groups within the organisation to have a clear picture of what the brand stands for.
Since your brand doesn’t live in a vacuum, it’s often instructive to compare its image, message and product or service scope within the competitive landscape. Take a deep, long look into their new product initiatives, programs and value-added services. The key is not to benchmark, but to differentiate your brand.
What does your brand promise? Is this promise still important to customers? Does your brand matter to the high value customer that represents the brands bigger future? Does it reflect a highly valued competitive advantage not in abundant supply elsewhere?
Do customers know what your brand stands for? The brand audit provides the reality check on just how well the essence or personality of the brand is resonating.
It’s critical to gain quantifiable insight on important metrics like brand awareness, purchase behaviours, attitudes, values, market share, and customer life value.
Brand architectures can get out of completely out of alignment over time. Take the time to reflect on how your brand is portrayed at the Master Brand level, and if it confuses or encourages clarity at the Product or Sub-Brand level. Also check that there is no confusion between the Corporate Brand or other attribute brands or branded features.
When brand managers think about consistency in marketing communications, they often think only about visual consistency. Go one step deeper: what does your brand actually say? What are the primary and secondary messaging platforms that guide consistent marketing communications?
It’s vital for an organisation to deliver a consistent brand strategy across all points of consumer contact, it’s equally important to have a precise and detailed understanding of how that policy is progressing. Brand Owners (from time to time) must step back and review how their brand is holding up. It is invariably an energising experience, and all those involved will find the process illuminating.Looking to learn the art of effective Customer Experiences? The ARA Retail Institute provides leading accredited training options including workshops and masterclasses in Revaluing the Total Customer Experience. Have a look at our class below: