How To Measure The Effectiveness Of Branding

Summary

In this video, branding expert Marty Neumayer discusses how to measure branding effectiveness using the 'Brand Ladder' formula. The ladder consists of four levels: satisfaction, where customers are content; delight, where they are so pleased they tell others; engagement, where customers feel a strong connection and loyalty; and empowerment, where the brand significantly impacts the customer's life. Tracking movement up this ladder can indicate a brand's success.

Takeaways

• 📏 Branding effectiveness can be measured in terms of ROI, contrary to traditional beliefs that it's immeasurable.
• 📊 Engagement with customers is a key metric for measuring branding effectiveness, and it can be tracked year over year.
• 📚 Marty Neumayer's book 'The Brand Flip' provides a formula for measuring brand engagement through the Brand Ladder concept.
• 🔝 The Brand Ladder starts with 'satisfaction' at the bottom, indicating customers are content with the company and its offerings.
• 🤩 'Delight' is the next rung on the ladder, where customers are so pleased they actively share their positive experiences.
• 🔗 'Engagement' signifies customers feel a strong connection with the brand, often leading to loyalty and advocacy.
• 🛍 'Automatic repurchase' is an indicator of delight where customers are eager to buy new products from the brand.
• ❤️ 'Emotional attachment' is a deeper level of engagement where customers feel a strong emotional bond with the brand.
• 👥 'Sense of belonging' is where customers identify with the brand's community or tribe.
• 💪 'Empowerment' is the top of the ladder, where customers feel that the brand is essential to their success or happiness.
• 📈 Tracking how many customers move up the Brand Ladder can help measure the overall success of a brand.

Q & A

What is the traditional belief about measuring the effectiveness of branding?

Traditionally, people believe that branding effectiveness cannot be measured because it is too soft and amorphous.

How does Marty Neumayer suggest measuring the effectiveness of branding?

Marty Neumayer suggests measuring branding effectiveness through customer engagement, which can be tracked year over year.

What is the name of the formula Marty Neumayer introduces in his book for measuring branding effectiveness?

The formula introduced by Marty Neumayer in his book is called the 'Brand Ladder'.

What is the first level of the Brand Ladder according to Marty Neumayer?

The first level of the Brand Ladder is 'satisfaction', where customers are satisfied with the company and its products.

What does the next level 'delight' on the Brand Ladder signify?

The 'delight' level signifies when customers are pleasantly surprised by the quality of a product or service and are inclined to tell their friends.

How is 'engagement' defined in the context of the Brand Ladder?

Engagement refers to customers who feel a strong connection to the brand and express a desire to belong to the brand community, such as identifying as an 'Apple person'.

What are the three indicators of engagement mentioned by Marty Neumayer?

The three indicators of engagement mentioned are automatic repurchase, emotional attachment, and a sense of belonging.

What is the highest level on the Brand Ladder and what does it represent?

The highest level on the Brand Ladder is 'empowerment', representing customers who feel that the brand has significantly improved their lives.

How does Marty Neumayer emphasize the importance of moving customers up the Brand Ladder?

Marty Neumayer emphasizes that the goal is to see how many customers have moved up to the top of the Brand Ladder, indicating the overall success of the brand.

What does Marty Neumayer mean when he says 'you don't buy brands, you join them'?

When Marty Neumayer says 'you don't buy brands, you join them', he means that customers become part of the brand community and feel a sense of belonging and loyalty to it.

How does Marty Neumayer's approach to branding effectiveness differ from traditional views?

Marty Neumayer's approach differs from traditional views by providing a tangible method to measure branding effectiveness through customer engagement levels and the Brand Ladder.