Measuring what counts

Investments in brands are particularly valuable because they have a holistic and long-term effect.

If the right metrics are measured in the right situation, the brand’s contribution to the company’s success can be shown directly. Measuring brand impact leads to difficulties when one tries to measure direct impact relationships that do not exist.

For example, a brand has no direct influence on the turnover or profit of a company. However, a brand can make a measurable contribution to increasing a company’s turnover or profit. This is a key difference that is often forgotten.

Customers and employees decide for or against a brand based on their experiences with a company and its offerings. These experiences influence preferences, willingness to pay and purchase intentions, among other things. The final purchase decision depends on other external factors that cannot be directly controlled by the company, such as the product, communication and pricing policies of competitors.

However, efficient and effective brand management has a direct influence on a company’s costs, as investments in communication, marketing, sales and employee recruitment, for example, are targeted and measurable. This ensures that only the most effective measures that require the least effort are implemented.

The following illustration shows an example of the influence of a brand on the company’s success. The impact relationships of the brand measures and the corresponding success factors and performance indicators enable efficient and targeted management of the brand in line with the corporate strategy.

Chains of effects and performance indicators for integrated corporate and brand management

Note: Exemplary overview with selected elements.
The chains of effect and performance indicators must be defined individually for all stakeholder groups.
→ Chains of effect and performance indicators for employees (corporate culture) 

Measuring the brands’ impact and contribution to the company’s success is the basis and prerequisite for targeted investments in them. A simple, comprehensible system for measuring brand impact and performance raises awareness of the economic importance of brands in all areas of the company and at all hierarchy levels. This enables the brand to receive the financial support it deserves.

Let’s talk about how this can be achieved for your brand(s).