KPI of the Day – Marketing Performance: % Brand awareness
Measures the rate at which target customers recognize and recall the brand.
To track the familiarity of the target customers with the brand.
Brand awareness consists of both brand recognition (the ability of consumers to confirm that they have previously been exposed to the brand), and brand recall (the ability of consumers to name the brand when given the product category).
Awareness strategies ultimately impact sales and financial outcomes. Having a target market that recognizes company products by their specific brand, is one of the objectives many organizations try to achieve.
However, brand awareness campaigns may not be sufficient to expand sales funnels, if not encouraged by ongoing marketing and advertising initiatives that further aid customers in making a conscious decision about their purchase.
Several recommendations on raising brand awareness can be formulated as follows:
- Planning a well-documented and informed brand awareness campaign;
- Executing an in-depth analysis of the company’s target market;
- Developing a powerful message that speaks clearly to its audience;
- Using adequate marketing tools and techniques to enhance brand awareness;
- Making smart use of advertising budgets.
Data collection for this KPI requires extensive surveys among target consumers, which can be costly and affected by the respondents’ subjectivity. Also, the KPI indicates the percentage of target customers recalling the brand only, not reflecting how many of them prefer the brand to other brands they recall.
Moreover, when looking to set threshold targets, to measure the indicator’s performance, this can vary depending on whether the purpose is to measure unaided awareness (when the respondents are asked to name brands within a product category), or aided awareness (when they are shown a list of brands and express familiarity with the brand, only after hearing or seeing it).
Tags: Advertising performance, Customer Experience, Marketing performance