Whenever I have seen brand scores, I alway see a lot of importance being given to awareness, TOM, brand preference scores etc. But, never does the customer-centric measures get adequate attention in brand metrics. It’s time we did it. Here’s a nice blog post I read on this subject.
Nick Wreden writes:
A brand scorecard must have the five metrics outlined below. The advantages of these metrics include ease of data collection and relevance to corporate profitability growth. Just as important, the rest of the organization can easily understand them.
- Customer retention & lifetime: The primary factor affecting customer profitability is retention. Generally, the longer a customer stays with you, the more profitable they become. Yet fewer than 20% of companies track retention, and even fewer have a standardized methodology of calculating customer lifetime.
- Customer profitability: Without customer profitability, there is no corporate profitability. The data required to calculate customer profitability is easier – and cheaper – to obtain than say, “gaining consideration.” Ideally, customer profitability is tracked by segment.
- Brand penetration: This is a summary indicator of the current customer, account and product penetration of major customers, along with annual goals.
- Customer acquisition/lead conversion: What percent of qualified leads are you converting by channel, and how long is the sales cycle?
- Customer loyalty: A variety of indicators can be used here, but the most common one is the number of referrals.