“I was listening as a client spoke about Succession Planning. Somewhere along the way he used the phrase Prisoner of Expectations and my mind went chasing that idea through the myriad of myths people have about all things marketing.”
Rick said, You mean like thinking that brand is more important than sales, right?”
“You’re right my direct marketing friend,” I responded. “That assumption is at the heart of so many expectations that people have of their marketing that are so wrong! Brand is something you have to allow to happen instead of trying to control it.
That’s why it is nearly impossible to put a number on it.
Rob, our southern-fried band guru arrived and jumped right in saying, “But you can measure it. You have to spend the money to learn the basic level of awareness and preference as well as sales to satisfy Rick and repeat to really nail it down.”
Jim, the lunch guest who had triggered my maunderings asked, “Can you explain that?”
Rob, who all of us call Bubba turned on his Georgia charm and said, “You betcha. Research folks believe you can figure out how powerful a brand y’all have by showing people your logo along with the competitions. Tha’s why lots of folks think a logo is a brand. Taint.
“The measures you can get that way break down like this:” he said indicating his points with raised fingers:
- Awareness—that’s the percentage of folks asked that can identify your “brand” and what it is all about from nothin’ more than your logotype.
- Preference—what share of the folks that can identify you and your competitors say they pick you first in a buying situation.
- Acquisition—that’s when it gets harder ‘cause you’re dealin’ with actual sales versus the competition but if you keep good records even ‘little guys’ can use this measure.
- Satisfaction comes next. Most marketer don’t want to admit that not everyone likes their product or service even when they buy and use it.
- Repeat— Another way to figure out where you really stand is lots easier in today’s on-line purchase world if you’re price, delivery included, is still the best easily available.
- Referral—is the final measure in reality. Y’all can get an idea about this by asking everyone that considers your product or service who told them about you.
Gail, the veteran advertising copy writer said, “If you run ads in national and sometimes regional magazines you can sometimes get Bubba’s first two from readership studies they do. B2B and B2C are pretty much the same except lower prices mean faster answers and acquisition is replaced with trial but it is pretty much the same game.”
“And,” I said, “the rule of thumb I learned long ago and far away is that the percentage drops by 20% each step of the way. In other words if 100 folks were aware than only 80 would Prefer my brand and then only 64 would actually buy. Of those, 51 would be satisfied 41 would buy again and of those just 33 would refer me.”
“Don’t forget,” Bubba said, just about nobody ever gets 100% awareness. Best ever I saw was barely north of 90%.
The Takeaway:
You can measure brand but generally only when it becomes a regional or nationally known product or service. A high awareness score is terrific but Preference, Acquisition (sales), Satisfaction, Repeat and Referral are always lower than Awareness. Always.
For the little guy, the better measure is found in knowing how your sales stack up against repeat and referral which you can easily develop from your B2B sales records
Jerry Fletcher’s blog recaps conversations with clients, prospects and the unruly mob of business development professionals he consorts with. They discuss marketing that works from solopreneur to enterprise level. Jerry Fletcher is the ringleader and “Watson” of the dialogue. Sign up for the blog and other publications at: www.JerryFletcher.com/Profit.html
Jerry has been researching and implementing small business marketing that builds businesses, careers and lives of joy for 25 years as President of Z-axis Marketing, Inc. Learn more at www.JerryFletcher.com
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