The number one value of growing a strong brand is sales. Sticky Brands sell more faster, and you’ll see it in your data:
- More demand
- Higher profits
- Less competition
Your sales metrics are an effective measure of brand performance. Sure, you can look at other metrics like social media engagement or the number of visitors to your website, but all those metrics roll up to one big question. Is marketing moving the sales needle?
A strong brand has a quantifiable impact on sales in three areas:
- Volume: The demand for your products and services.
- Velocity: The speed a customer travels through the buying process.
- Value: The ability to sell at a premium and avoid discounting.
These metrics are the 3Vs, and they’re where I start to measure brand performance.
Volume: Is your company drowning in leads?
Walk into any Apple Store and you’ll see dozens of people examining the devices. The stores are always busy.
Apple’s brand is so effective that it creates a halo effect. According to the Wall Street Journal, “Apple draws so many shoppers that its stores single-handedly lift sales by 10% at the malls in which they operate.”
Apple’s ability to attract customers is a measure of its brand performance. High foot traffic translates into higher sales. It’s estimated that Apple’s revenue per square foot is $6,050, which is double what Tiffany & Co achieves.
What is the demand for your products and services? Look at your lead generation metrics to assess Volume.
Velocity: Are customers kicking the tires or making decisions?
A strong brand translates into faster sales. Customers who love your brand are fast, efficient buyers. They don’t “kick the tires” or shop for the lowest price. They buy, because they know your brand, like it, and trust it.
Velocity is a relatively easy metric to capture. Track the time it takes a customer to move through each phase of the buyer’s journey, from inquiry to close.
Your brand will accelerate sales performance, because your customers already have a relationship with your company. They know it, like it, and trust it, and that means they’ll make decisions faster.
Value: How often does your sales team discount to win?
Strong brands don’t discount to win. In fact, customers will often pay a premium for the market leader.
Growing a strong brand is like building a moat around your business. It insulates and protects your products and services in measurable ways:
- Increased perceived value and affinity towards your products and services.
- Increased customer attraction and retention.
- Decreased price sensitivity.
The moat gets deeper and wider the stronger your business becomes on these three dimensions.
To measure Value look at pricing metrics. Is your company able to price products and services at a premium? How often do your sales reps discount to win? How often does your company run promotions to move the sales needle?
Strong Brands Drive Sales Performance
There is no shortage of metrics to manage your business, but CEOs and shareholders want to see two things:
- Revenue: Is the business growing?
- Profit: Is the business making money?
To measure your brand’s performance work backwards from these two questions.
The 3Vs help you quantify brand performance. They will help you see how your brand is moving the sales needle, and indicate where your brand is succeeding and where it may be lagging.