You can't manage what you don't measure

Measuring growth in brand equity.

The saying “You can't manage what you don't measure” applies perfectly to one of your company's greatest assets: your brand! Understanding and nurturing your brand equity is essential to driving business success and value over time.

The problem is that brand equity and value are often seen as abstract concepts, but they have tangible impacts across your organisation. They affect customer acquisition costs, pricing strategies, customer loyalty, talent retention, and overall commercial value. Transitioning from instinct to measurement is crucial to unlocking a brand's full potential.

Why measuring brand equity matters

A strong brand drives faster, more sustainable growth and is more likely to be resilient during tough times. By taking a strategic and systematic approach to managing your brand’s value, you will gain insights on where to concentrate your attention to maximise it.

Here are some examples of how measuring and improving brand equity can enhance your overall business value:

• Customer attraction: Gauging brand awareness and perception can help you understand your brand's appeal and reduce potential customers' perceived risks.

• Market expansion: Recognised brands enjoy greater credibility in new markets, helping to establish a foothold faster.

• Enhancing perception: Regular measurement identifies elements that resonate with your target audience, influencing content and communication decisions.

• Pricing power: Trustworthy brands can command premium prices, enhancing profitability and increasing shareholder value.

• Customer loyalty: Strong brands foster emotional connections, leading to repeat purchases and greater customer retention.

Measuring brand equity is more achievable with key metrics.

Key metrics to track:

1. Brand awareness
Track unprompted and prompted awareness, website traffic, and social media mentions.

2. Brand perception
Use sentiment analysis and surveys to assess and improve brand attributes.

3. Customer loyalty
Monitor your Net Promoter Score (NPS), customer satisfaction, and churn rates.

4. Brand engagement
Analyse social media interactions and website engagement.

By monitoring brand performance, you turn brand equity into a manageable asset that drives growth.

The key takeaway

Measurement is critical across all facets of business. In our current data-focused environment, the principle “you can't manage what you don't measure” holds more truth than ever. Neglecting the measurement of your brand equity growth over time represents a lost opportunity to unlock substantial growth potential and lasting value. By adopting a data-centric approach to brand management, you can gather critical insights, refine your strategies, and ultimately guide your business toward enhanced success.