A brand index can vary, usually in terms of what categories are being measured. These indexes are normally broken down into key markets such as: finance brands, health and wellness brands, snack brands, alcohol brands, fashion brands, appliance and electronic brands, etc. The detail that ranks these brands overall is ‘total brand equity’. In this article, we will look at three aspects that combine to make this ‘total brand equity’ that can be used to score a brand index and see why this selection of criteria makes it so successful and accurate.
The three areas of criterium are:
- Unprompted brand recall: Measured by consumers being asked to name brands when given a certain category, such as those different types of indexes listed above.
- Purchase intent: This simply ascertains how much a consumer is likely to purchase a certain brand or use a brand’s services.
- Net promoter score: This scores a brand based on how likely a consumer will recommend it to someone else.
By themselves, these three areas may seem fairly basic, yet when combined they help show clearly and quickly how a brand is performing.
So, let’s see why this combination works so well. Unprompted brand recall allows there to be a measurement of how visible a brand is. This can quickly reveal whether a brand is a market leader, or much lower down the field. This in itself does not tell us anything about the product or service on offer though. For example, a company that is highly advertised on a national scale will have a high unprompted brand recall, but might score lower on the other two. So, if a brand has a low unprompted brand recall score, but a high score in the other two categories, it shows that the product or service itself is not the problem, but the lack of coverage and visibility the brand is receiving. We can see very quickly that this combination of scores can direct a company to the area that needs the most work within a business.
Finally, this article will briefly mention how adding a net promoter score, helps increase the information given by purchase intent. This is because purchasing shows X amount of faith in a brand, while feeling the confidence to recommend a brand must be higher than X, as a consumer is willing to put their own reputation on the line (to an extent), not just the brand’s.