Thursday, January 04, 2018

The Economics of Branding

At Brand Keys we specialize in predictive loyalty and emotional brand engagement metrics.

Real loyalty is more than satisfaction or awareness or a willingness to recommend. It’s more than tweets, likes, or shares. Real loyalty is much more, and much more valuable. Loyalty and brand engagement all link to positive consumer behavior toward a brand.

Axiomatically, the better the behavior, the better a brand does in the marketplace and the better the brand’s bottom line. Increase engagement and you increase loyalty. Our findings correlate with positive consumer behavior at levels of 0.85 or higher. If that doesn’t convince you, maybe some hard economic facts of brand life will:
  • It costs 10 to 12 times more to recruit a new customer than to keep an existing one.
  • An increase in customer loyalty of only 7% can lift lifetime profits per customer by as much as 90% depending upon the sector, an increase in loyalty of just 3% can be the equivalent of a 10% across-the-board cost reduction program.

Our approach has been independently validated, with a basic survey identifying the following 12 to 18 months ahead of traditional research:
  • What drives loyalty and engagement in your category,
  • Which category and consumer values make the greatest contributions to consumer behavior,
  • What consumers really expect from your brand, and, perhaps most importantly,
  • A precise identification of how well your brand is seen to meet those expectations. 


For more information about our correlated-to-behavior, emotionally-based, and independently-validated brand insights, and to find out if your brand is or can be included in Brand Keys 2018 Customer Loyalty Engagement Index, give Leigh Benatar a call (212-532-6028) or send him an email (leighb@brandkeys.com). He can answer any questions about how you can increase your brand’s bottom line in 2018.    

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