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.

Outlines

00:00

📊 Measuring Branding Effectiveness

In this video script, Marty Neumayer, a branding expert, discusses the importance of measuring branding effectiveness and dispels the myth that it cannot be quantified. He introduces the concept of the 'Brand Ladder' from his book 'The Brand Flip' as a method to gauge customer engagement and brand reputation. The ladder consists of four levels: satisfaction, where customers are content with the company's offerings; delight, where customers are pleasantly surprised and share their positive experiences; engagement, where customers feel a strong connection and loyalty to the brand; and empowerment, the highest level, where customers feel they cannot live without the brand and it significantly impacts their lives. Neumayer emphasizes the need to track how many customers ascend the ladder to measure the brand's overall success.

Keywords

💡Branding

Branding refers to the process of creating a unique name, image, or design for a product or service to distinguish it from others in the market. In the video, branding is discussed as a critical aspect of business that can be measured for effectiveness. The theme revolves around how branding can be quantified, moving beyond the traditional belief that it is immeasurable.

💡ROI

ROI stands for Return on Investment and is a performance measure used to evaluate the efficiency of an investment or compare efficiency of different investments. The video challenges the conventional wisdom that branding cannot be measured in terms of ROI, suggesting a method to do so.

💡Engagement

Engagement, in the context of the video, refers to the interaction and involvement of customers with a brand. It is used to measure the effectiveness of branding by tracking how customers respond to and interact with a company's products or services over time.

💡Brand Ladder

The Brand Ladder is a concept introduced in Marty Neumayer's book 'The Brand Flip'. It is a framework used to measure how people regard a company, essentially serving as a measure of reputation. The video uses the Brand Ladder to illustrate how to evaluate the effectiveness of branding.

💡Satisfaction

Satisfaction is the lowest rung on the Brand Ladder and represents the basic level where customers are content with a company's offerings. The video mentions that satisfaction is a starting point, indicating that customers are at least pleased with what the company provides.

💡Delight

Delight is a step up from satisfaction on the Brand Ladder. It signifies a higher level of customer response where they are not just satisfied but pleasantly surprised by the product or service, often leading them to recommend the brand to others.

💡Empowerment

Empowerment is the highest level on the Brand Ladder. It reflects a deep connection where customers feel that the brand has a significant positive impact on their lives. The video uses the example of a customer feeling lost without the brand, indicating a high level of loyalty and integration of the brand into their lifestyle.

💡Repurchase

Repurchase refers to the act of customers buying from the same brand again. In the video, automatic repurchase is highlighted as a sign of engagement, where customers are so loyal that they buy new products without hesitation.

💡Emotion Attachment

Emotional attachment is a strong emotional bond that customers form with a brand. The video uses the example of Apple customers feeling a sense of loss when Steve Jobs passed away, illustrating the deep emotional connection some brands can inspire.

💡Belonging

Belonging is the sense of being part of a community associated with a brand. The video talks about how customers may identify strongly with a brand, such as 'being an Apple person', indicating a high level of engagement and loyalty.

💡Brand Flip

'The Brand Flip' is a book by Marty Neumayer that introduces the concept of the Brand Ladder. The video discusses this book as a resource for understanding how to measure the effectiveness of branding through customer engagement.

Highlights

Branding effectiveness can be measured in terms of ROI.

Traditionally, branding was considered immeasurable due to its 'soft' nature.

Branding can be quantified through customer engagement over time.

The Brand Flip book introduces a formula for measuring branding effectiveness.

The Brand Ladder is a tool for measuring how people regard a company.

Satisfaction is the base level of the Brand Ladder, indicating customer contentment.

Delight is the next level, where customers are pleasantly surprised and share their experience.

Engagement is where customers feel a strong connection and loyalty to the brand.

Automatic repurchase indicates a high level of engagement.

Emotional attachment is a sign of deep customer-brand connection.

A sense of belonging is key to customer engagement.

Empowerment is the top level of the Brand Ladder, where the brand significantly impacts a customer's life.

Branding success is measured by the number of customers who reach the top of the Brand Ladder.

Branding effectiveness can be tracked through customer satisfaction.

Delight can be measured by customers' willingness to recommend the brand to others.

Engagement is shown by customers' love for the company and a sense of belonging.

Empowerment changes the customer's life or makes it significantly better.

The interview concludes with a summary of the key points discussed.

Transcripts

hey y'all well you're about to watch the

cut down from a livestream interview

with branding master Marty Neumayer and

in this video he explains how the

effectiveness of branding can be

measured stay tuned to hear what his

formula is on how to measure it how do

you measure the effectiveness of

branding in terms of ROI traditionally

people say you can't you can't measure

it because it's too soft it's it's it's

too amorphous but you can measure it in

terms of engagement with with customers

and you can measure that from year to

year and it's cheap and it's almost free

to do any company wants to do it my book

the brand flip has a really good formula

for that and it's called the brand

ladder and it mu it measures how people

regard your companies so how your

reputation is doing so Chris what's at

the bottom of the ladder bottom of the

ladder is satisfaction right so our

customers satisfied with with the

company and what they put out well

that's a pretty low bar these days right

yes satisfied means yeah they did what

they do and you know I you know maybe I

buy it again and then from there you go

up to what the next step up is delight

delight

so delight is when you're going wow I

didn't know it'd be this good this is

really cool and I'm gonna tell my

friends all right so you can measure

that and the next one is engagement

engagement so an engagement you're like

there's a customer going I love this

company and I really feel like I belong

with this brand with this I love this

product let's say Apple I really an

Apple person I really I just buy

everything they come out with because I

know it's gonna be good I just even if I

I've never even thought of that before

that category you know here comes an

Apple watch I didn't even know I wanted

to watch I'm gonna get it right so

that's an engaged customer then from

there you have three things that are

engagement I want to point out to them

automatic repurchase is how you can tell

you abused with that question they

launched a new thing I'm in I'm bought

in the emotional attachment you've

talked about this in many of your books

about how when Steve Jobs passed away

there was like vigils and people were

like crying and just eulogies and all

kinds of stuff there was an emotional

attachment you don't feel that way about

a lot of companies and the sense of

belonging like I am an apple tribe guy

and I know my PC friends I'm a Christian

tribe guy right I like that it's yeah

and so what you're doing though is

you're going beyond that your your at

the top level yes here we are the top

the top of the brand ladder is

empowerment so that's where as someone

who's joined the brand which is what you

do with brands you don't buy them you

join them it's saying I don't know what

I would do without Chris Chris doe

helping me understand all this stuff I

mean I wouldn't be making as much money

it wouldn't be as happy I'm I'm totally

bought and my life wouldn't be as good

if you took that brand away from me so

that's that's at the very top um and the

and your customers are gonna be at all

these different levels but you want to

see how many have moved up to the top so

that's a way to measure the overall

success of the brand to recap branding

effectiveness can be measured through

customer engagement and his formula for

this was the brand ladder the four

levels were satisfaction is a customer

satisfied with the company and what they

put out delight it's so good that they

tell people engagement they feel love

for the company in a sense of belonging

and empowerment and it's changed the

customers life or it wouldn't be as good

that's it for me guys I'm Jonah see

y'all next time

I'm not in shape to talk to the camera