Brand metrics: Gauging and linking brands with business performance Received (in revised form): 23rd February, 2004
TIM MUNOZ is a managing partner of Prophet (www.prophet.com), a management consulting firm specialising in the intersection of business and brand strategy. He is a frequent commentator in the media, at corporate forums and business schools on both the intersection of business and brand strategy and marketing investment and measurement. He received a B.A. in History from Brown University.
SHAILENDRA KUMAR is a founding partner of Equilibrium, the international brand consulting partnership. He has consulted at the highest levels around the world, is a visiting lecturer at Insead in Paris, and has been published widely. At the time of writing this paper he was a director of the management consultancy Prophet. He can be contacted, at
[email protected]
Abstract For all the discussion that revolves around the importance of the brand as a driver of business value and success, surprisingly few businesses have instituted a systematic programme of analytics that allows them to gauge their brands’ performance, adjust brand strategies and, more importantly, link them to business performance measures. This is as true for business-to-business (B2B) as it is for business-to-consumer (B2C) marketing, even though B2B organisations have a critical advantage: they have a better idea of who their customers are and can measure the dynamics of acquisition, retention and optimisation with considerable precision. This paper discusses the essential components of a brand metrics programme, how it can and should be linked to business performance, and how one technology company used brand metrics to help it adjust its brand and business strategy.
INTRODUCTION
Tim Munoz Prophet, 55 Drury Lane, London WC2B 5SQ, UK Tel: ⫹44 (0)20 7420 3733; Fax: ⫹44 (0)20 7420 3700; E-mail:
[email protected]
‘What is not measured is not managed’ is a well-worn management catchphrase. Indeed, where would businesses be if they did not consistently monitor and measure the long-term health and stability of their organisations across multiple dimensions — from cash flow to productivity to return on investment? In comparison, measurement of the strength and success of an organisation’s brand seems to be in its infancy. Although intangible assets are by far the largest part of corporate value, and brand is often the largest component of intangible assets, it is a wonder that few businesses seem able to actively measure thei