This is really a difficult problem to argue about the “millennium.”
Editor’s note: This article is from WeChat public account “Little Circle Pear” (ID: xiaoquanlisocial), the author is a small circle pear.
Would the brand department want to sell KPIs? This is really a difficult problem to argue about the “millennium.” Because this is difficult to determine the problem, Party A’s brand department is three points shorter than the sales department and e-commerce department that can directly bring sales. In the face of economic downturn, layoffs will also cut the brand department first. And what about Party B? Because this problem has been challenged by customers has become a “plate dish.” So, is the brand department going to end the KPI?
First, let’s take a look: Why is this long-standing issue difficult to conclude? The root cause is: In general, the scope of brand work includes: brand Slogan, VI and other brand elements; brand communication through public relations, advertising, etc. These are not directly related to sales. In other words: In the above brand building behavior, if you invest 100 yuan, it is difficult to figure out how much sales can be generated. Even if you put a sales link or QR code, is the sales conversion brought true? Is there no lag to buy?
However, if the brand department does not sell the KPI, how can it reflect the value of the brand department? What growth has it brought to the enterprise? We should revisit the work of the brand department from the following three key issues and sort out meaningful evaluation indicators.
Key question one:KPIs for brand marketing only have sales?
If the KPI of brand marketing only has sales, then there is no such thing as “marketing” in the world.
Philippe Kotler said in the book Marketing Revolution 4.0: “In the past, brand loyalty was seen as willing to buy and repurchase; In the connected era, customers embraced product support. The purchase behavior reflects the customer’s loyalty to the brand.”The “customer’s support for the product” here means “If the customer loves the brand, it will also be used when not in use.” Recommended by others.”
To this end, he proposed two new ones.Important measurement metrics: Purchase Action Rate (PAR) and Brand Recommendation Rate (BAR). The purchase action rate measures the ability of a company to translate brand perception into a purchase behavior; the brand recommendation rate measures the ability to turn brand perception into brand support.
“For example, there are 100 customers on the market, and the X brand will be recalled by 90 of them;and among these 90, only 18 will eventually buy the product. Only 9 people will actively recommend the brand.Therefore, the purchase rate of the X brand is:18/90 or 0.2, the brand recommendation rate is: 9/90 or 0.1.”
Although this way of calculating PAR and BAR is rather vague. For example: How do you measure how many users and potential users are in the market? How do you know how many people will think of your brand? However, the brand recommendation rate (BAR) points out the value and meaning of the brand work. “Active brand advocates don’t need to ask others to take the initiative to recommend, tell the brand story, be the brand’s evangelist. The trigger points they need are questions and bad reviews. They will feel obligated to recommend and protect their beloved brands. And because these people dare to recommend their favorite brands, they are naturally more likely to buy these brands again in the future.”
Philippe Kotler further said: “In fact, the use of PAR and BAR research marketing return on investment (ROMI) does not perform well. For most industries, the biggest one of marketing expenses is used in playing Advertising expands popularity. So, we can think of brand recognition as equal to “marketing investment” in the formula of ROMI. “return” has two sides, and one side can directly convert into sales in the eyes of the merchant. The purchase behavior, on the other hand, is the customer support that cannot be directly converted.”
In addition, companies can grow even though they have sales; however, sales are determined by many factors. Branding work can make people know and love brands, and it can lead to positive discussions on the Internet; these are all possible conversions, even large areas into final sales. And sometimes, the sales KPI is a blind eye, and the temporary sales may be hurting the brand. For example, an untimely price reduction promotion will make consumers think that the brand is “falling from the price”, is it going downhill? From then on, the consumer’s brand impression of this product is only worth the price; then buying at normal prices is a big loss, not worth it.