Before you write a brand plan, you should be using consumer data to uncover the issues facing your brand. We will look at consumer tracking data and brand funnel data to help you dig deeper on issues.
You should analyze your consumer target to better understand the consumer’s underlying beliefs, buying habits, growth trends, and critical insights. Use the brand funnel analysis and leaky bucket analysis to uncover how they shop and how they make purchase decisions. You should understand what they think when they buy or reject your brand at every stage of the consumer’s purchase journey. Uncover consumer perceptions through tracking data, the voice of the consumer, and market research.
Too many marketers are not taking the time to dig in on the analytics. There is no value in having access to consumer data if you are not using it. The best brand leaders can tell strategic stories through analytics.
The consumer review
I will show you how to use consumer tracking data, the brand funnel analysis and how it matches up to the brand love curve.
How to use consumer tracking data
Tracking or household panel consumer data helps you understand what’s going on in the marketplace and will match up to what’s happening at the store level. As discussed in the strategy section, you are either trying to get more people to use your brand (drive penetration) or try to change the way they use your brand (drive purchase frequency).
This tool uncovers the consumer data; then you need to put a story to that data.
A: Penetration is the percentage of households who purchased your brand product at least once during a measured period.
B: Buying rate or sales per buyer is the total amount of product purchased by the average buying household over an entire analysis period, expressed in dollars, units, or equivalent volume.
C: Purchase frequency or trips per buyer is the number of times the average buying household purchases your product over a time period (usually one year).
D: Purchase size or sales per trip is the average amount of product purchased on a single shopping trip by your average buyer. It can be calculated in dollars, units, or equivalent volume.
How to analyze your brand using brand funnels
Every brand should understand the details of their brand funnel, the best tool for measuring your brand’s underlying health. It is the equivalent to knowing your personal blood pressure or cholesterol scores. A classic brand funnel should measure awareness, familiarity, consideration, purchase, repeat, and loyalty. At the very least, you should measure awareness, purchase, and repeat. It is not just about understanding the absolute scores on the funnel but rather the ratios that explain how good of a job you are doing in moving consumers from one stage of the funnel to the next.
I will show you how the robustness of your brand’s funnel explains where your brand sits on the brand love curve. The broader the funnel, the better connected your brand is with consumers.
Absolute brand funnel scores
A: Starting with the chart above on the left, the first thing to do is look at the absolute brand funnel scores. There are many types of comparisons you can do, whether you compare to last year, competitors, or category norms.
B: Then look at the brand funnel ratios, which is the percentage score for how well your brand can convert consumers from one stage of the funnel to the next. To create ratios, divide the absolute score by the score above it on the funnel. In the example above, take the familiar score of 87% and divide it by the awareness score of 93% to determine a conversion ratio of 91%. This means 91% of aware consumers are familiar.
Brand funnel ratios
C: For the chart on the right, lay out the absolute scores and the ratios in a horizontal way to allow a comparison. You will notice these are the same scores as “A” and “B” in the previous chart. The crucial numbers for Gray’s Cookies are the ratios of 91%, 94%, 77%, 25%, and 12% at the top of the chart. Then bring in a close competitor (Devon’s) with their absolute and ratios scores to allow a direct comparison.
D: Then find the ratio gaps by subtracting the competitor’s ratio scores from your brand’s ratio scores. In the example, the first ratio gap is -7% ratio gap (91% – 98%) which means Devon’s does a 7% better job in converting consumers from awareness to familiar than Gray’s Cookies.
E: As you create ratio gaps along the bottom, you can see where your ratio is either stronger or weaker than the comparison brand. Finally, start analyzing the significant gaps between the two brands and tell a strategic story to explain each gap. Looking at the example, you can see Gray’s and Devon’s have similar scores at the top part of the funnel, but Gray’s starts to show real weakness (-23% and -51% gap) as it moves to repeat and loyalty. You need to address and fix these gaps with your brand plan.
Matching consumer data to the brand love curve
You can begin using your consumer tracking, brand funnel, market share, and the voice of the consumer to help explain where your brand sits on the brand love curve.
- Indifferent brands have skinny funnels, starting with very poor awareness scores. Consumers have little to no opinion. Concerning performance, you will see low sales and poor margins. Your brand plan for indifferent brands should increase awareness and consideration to kickstart the funnel.
- The like it brands have funnels that are solid at the top but quickly narrow at the purchase stage. Consumers see these brands as ordinary and purchase only on a deal. When they are not advertised or on sale, sales fall off dramatically. These brands need to close potential leaks to build a loyal following behind happy experiences.
- The love it brands have a reasonably robust funnel but may have a smaller leak at loyal. They have stronger growth and margins. Look for ways to feed the love and turn repeat purchases into a ritual or routine.
- The beloved brands have the most robust brand funnels and positive consumer views. These brands should continuously track their funnel and attack any weaknesses before competitors exploit them. Also, it is time to leverage that brand love to influence others.
To kick-start your review of the consumers, here are 10 probing questions:
- Who are your possible target consumer segments? Are they growing? How do you measure them?
- Who are the consumers most motivated by what you have to offer?
- Who is your current target? How have you determined demographics, behavioral or psychographic, geographic, and usage occasion? Generational trends?
- How is your brand performing against KEY segments? Share, sales, panel or funnel data, tracking scores? What about by channel or geography?
- What drives consumer choice? And, what are the primary need states? How do these consumer needs line up to your brand assets? Where can you win with consumers?
- Map out the path to purchase and use brand funnels to assess your brand’s performance in moving through each stage. Are consumers changing at stages? Are you failing at stages?
- What are the emerging consumer trends? How does your brand match up to potentially exploit them? Where would your competitors win?
- What are the consumer’s ideal brand experiences and unmet needs we can address?
- What are the consumer’s emotional and functional need states? How does the brand perform against them? How are you doing in tracking studies to meet these benefits?
- What is the consumer’s perceptions of your brand and your competitors? Voice of the consumer.
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With Beloved Brands, you will learn everything you need to know so you can build a brand that your consumers will love.
You will learn how to think strategically, define your brand with a positioning statement and a brand idea, write a brand plan everyone can follow, inspire smart and creative marketing execution and analyze the performance of your brand through a deep-dive business review.
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Beloved Brands: Who are we?
At Beloved Brands, our purpose is to help brands find a new pathway to growth. We believe that the more love your brand can generate with your most cherished consumers, the more power, growth, and profitability you will realize in the future.
The best solutions are likely inside you already, but struggle to come out. Our unique engagement tools are the backbone of our strategy workshops. These tools will force you to think differently so you can freely generate many new ideas. At Beloved Brands, we bring our challenging voice to help you make decisions and refine every potential idea.
We help brands find growth
We start by defining a brand positioning statement, outlining the desired target, consumer benefits and support points the brand will stand behind. And then, we build a big idea that is simple and unique enough to stand out in the clutter of the market, motivating enough to get consumers to engage, buy and build a loyal following with your brand. Finally, the big idea must influence employees to personally deliver an outstanding consumer experience, to help move consumers along the journey to loving your brand.
We will help you write a strategic brand plan for the future, to get everyone in your organization to follow. It starts with an inspiring vision that pushes your team to imagine a brighter future. We use our strategic thinking tools to help you make strategic choices on where to allocate your brand’s limited resources. We work with your team to build out project plans, creative briefs and provide advice on marketing execution.
To learn more about our coaching, click on this link: Beloved Brands Strategic Coaching
We make Brand Leaders smarter
We believe that investing in your marketing people will pay off. With smarter people behind your brands will drive higher revenue growth and profits. With our brand management training program, you will see smarter strategic thinking, more focused brand plans, brand positioning, better creative briefs that steer your agencies, improved decision-making on marketing execution, smarter analytical skills to assess your brand’s performance and a better management of the profitability of the brand.
To learn more about our training programs, click on this link: Beloved Brands Training
If you need our help, email me at firstname.lastname@example.org or call me at 416 885 3911