How to analyze your Consumers

When leading a dive deep on the consumer, start by figuring out where you are playing, defining who you are serving and who you aren’t serving. Define segments, look at buying habits, growth trends, key insights for each segment. Gain knowledge by mapping out the buying system analysis, leaky bucket, consumer perceptions through tracking data and research. We recommend that you either use some type of panel/scan data if it is available or compile your own data through tracking research. This helps determine what’s going on with consumer behavior beneath the surface. Our preference is the brand funnel tracking tools as it maps out how well your brand is doing at each stage of the consumer buying system.

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How to use consumer tracking data 

From the tracking or household panel data (Nielsen or IRI), you have to understand how your brand is doing on both penetration and the buying rate, in order to fill in the simple equation of  “Sales = (Total Population x Penetration rate) x Buying Rate”.

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  • Penetration Percentage: The percent of households who purchased a product, shopped in a certain channel or retailer at least once during a measured period.
  • Buying rate or sales per buyer: Total amount of product purchased by the average buying household over an entire analysis period, expressed in dollars, units or equivalent volume.
  • Purchase frequency or trips per buyer: Number of times the average buying household purchases your product over a time period (usually a year). Purchase Frequency remains the same regardless of which sales measure is used (dollars, units or Equivalent volume)
  • Purchase size or sales per trip: Average amount of product purchased on a single shopping trip by your average buyer. Like the buying rate, purchase size can be calculated in terms of dollars, units or Equivalent volume.

How to analyze your brand using Brand Funnels

Every brand should understand the details of their Brand Funnel, knowing what’s causing any strength, weakness, changes versus last year or gaps versus competitors. A classic brand funnel should measure awareness, familiar, consider, purchase, repeat and loyal. At the very least, you should be measuring awareness, purchase and loyalty. It’s not just about driving particular numbers on the funnel, but about moving them from one stage to the next.

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The first thing to do (see chart above) is look at the Absolute brand funnel scores (A), comparing them to last year, to competitors or versus category norms. Then look at the brand funnel ratios (B), finding the percent conversion from one stage to the next. To create the ratios, divide the absolute number by the number above it on the funnel. For instance in the example below, take the familiar score of 87% and divide it by the awareness score of 93% to determine the ratio conversion of 91%. That means 91% of those who are aware become familiar.

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The data becomes even more powerful when you start looking at the ratios of your brand in comparison (C) to the ratios of your nearest competitor. In this second part of the analysis, the ratio becomes the focus. Compare the ratios, finding the gap (D) between the two brands at each of the stages. You will start to see where your ratio will either be stronger or weaker than the comparison brand. Analyzing the difference (E) between the 2 brands finds the biggest gaps and tells a strategic story that explains the gap. Looking at the example, we see “Your Brand” and “Brand X” are relatively similar at the top part of the funnel, but your brand starts to show real weakness as it moves to repeat and loyalty. This creates a gap you need to fix through the Brand Plan.

The brand funnel data helps tell where your brand sits on the Brand Love Curve. Indifferent brands have skinny funnels throughout. Consumers treat these brands like commodities. Your Brand Plan need to fuel awareness and consideration to kick-start the funnel. The next stage we call Like It brands, which have funnels that narrow at purchase. These brands need a plan to close leaks by getting their brand message closer to the purchase moment. The Love It type brands have a more robust funnel, but may have a smaller leak at loyal. The plan should continue to feed the love and build strength among loyalists. The most beloved brands have ideal funnels, but you should track and build a plan that will attack any weakness before it is seen or exploited by others.

Market Research Studies

Market Research studies can really help uncover issues on your brand. Some brands keep looking back at a study from 5 years ago, and miss out on the major changes that have happened in the marketplace since. Market Research should provide a view of the who, what, when, where and how behind the overall consumer dynamics of your category or market. They can help you understand how consumer behavior and usage changes by brand, helping explain why consumers buy specific brands and what it is that makes those brands distinctive, outlining the rational and emotional benefits. They help identify any perceived gaps in the consumers mind between the brand promise, consumer expectation and the overall brand performance. And, a good market research study can provide an overall vantage of various consumer segments, looking at lifestyle and demographic dimensions, how they consume media, overall attitudes on key drivers or brand benefits.

Consumer Buying System

When we do our brand planning and marketing execution, we manage the executional tactics using a consumer buying system that starts with the consumer and then maps out how they shop, closely resembling the brand funnel. This tool can really helps focus your activities to where your brand needs the most help, either to continue fueling or closing a gap.

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Here are 10 probing questions to kick-start your consumer review

  1. Who are your possible target market consumer segments? Are they growing? How are you measuring them?
  2. Who are the most motivated consumers by what you have to offer?
  3. Who is your current target? How have you determined demographics, behavioral or psychographic, geographic and usage occasion? Generational trends?
  4. How is your brand performing against the target segment? Share, sales, panel data, funnel data, tracking scores? By channel or geography?
  5. What drives consumer choice? What are the main need states? How so these needs line up to your brand assets?
  6. Map out the buying system and assess your brand’s performance in moving through each stage. Are consumers changing at stages? Are you failing at stages?
  7. What are the emerging consumer trends? How does your brand match up, to potentially exploit? Where would your competitors win?
  8. What is the ideal brand experience and unmet needs we can attach the brand to?
  9. What are the emotional and functional benefits? How is the brand performing against them? How are you doing in tracking studies to meet these benefits?
  10. What are consumers’ perceptions of your brand and your competitors?

 

Here’s our latest newsletter on How to lead a deep-dive business review.  Feel free to download it.

 

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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Using brand funnel data to assess your brand’s health

brand funnelA classic brand funnel would measure awareness, familiar, consider, purchase, repeat and loyal. They tell you where you are now, and when analyzed with intelligence, they can provide hints as to  where you can go next.

Brand Funnels can help you determine where your brand sits on the Brand Love CurveI created the brand love curve, which outlines how consumers move through five stages: unknown, indifferent, like it, love it, and onto the beloved brand status. 

Indifferent brands have very skinny brand funnels with low awareness, low purchase and negligible repeat and loyalty. Brands that are liked but not loved, have high awareness and sales, without an emotional connection, they almost have no loyalty.

And finally, at the beloved brands had the most robust brand funnels, with strong awareness, purchase, repeat and loyalty scores. 

How to use brand funnels to determine brand health

At the very least, you should be measuring Awareness, Purchase and Loyalty rates.  While sales, share and profits are the obvious measurements of a brand, they are easy to see but are the end result.

How to analyze your brand using Brand Funnels

Every brand should understand the details of their Brand Funnel, knowing what is causing any strength, weakness, changes versus last year or gaps versus competitors. A classic brand funnel should measure awareness, familiar, consider, purchase, repeat and loyal. At the very least, you should be measuring awareness, purchase and repeat. It is not just about driving particular numbers on the funnel, but moving consumers from one stage of the funnel to the next. How to determine your brand’s health using brand funnels

The first thing to do is look at the absolute brand funnel scores (A), comparing them to last year, to competitors or versus category norms. Then look at the brand funnel ratios (B), finding the percent your brand is able to convert from one stage of the funnel to the next. To create the ratios, divide the absolute number by the number above it on the funnel. In the example, take the familiar score of 87% and divide it by the awareness score of 93% to determine the conversion ratio of 91%. That means 91% of those who are aware become familiar.

Breaking down the Brand Funnel ratios

The brand funnel becomes more powerful when you start looking at the ratios.

How to determine your brand’s health using brand funnels

The first thing to do is lay out the ratios scores (C) of your brand versus your nearest competitor. Then, find ratio gaps (D) by subtracting the competitor’s ratio scores from your brand’s ratio scores. In the example, the first ratio moving from aware to familiar would create a -7% ratio gap (91% – 97%) which means your brand trails your competitor by 7%. You will start to see where your ratio will either be stronger or weaker than the comparison brand. Finally, you should start analyzing the difference (E) between the two brands and tell a strategic story to explain each gap. Looking at the example, you can see Gray’s and Dad’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. This creates a gap you need to fix through your Brand Plan.

How to determine your brand’s health using brand funnels

Putting meaning to the Brand Funnel results

The brand funnel data explains where your brand sits on the Brand Love Curve. Indifferent brands have skinny funnels throughout. Your plan for indifferent brands should fuel awareness and consideration to kick-start the funnel. For Like It brands, the brand funnels are solid at the top but quickly narrow at the purchase stage. These brands need tools to close potential leaks and trigger consumers at the purchase moment. Love It stage brands have a fairly robust funnel, but may have a smaller leak at loyal. The plan should continue to feed the love and turn repeat into a routine. The most beloved brands have robust brand funnels. These brands should continuously track their funnel and attack weakness before exploited by competitors.

How to determine your brand’s health using brand funnels

How tightly connected is your consumer to your brand?

Consumer strategy has to work to tighten the bond with consumers and establish a core group of brand lovers. Where the brand sits on the Brand Love Curve can really impact the strategic focus for the brand. All brands start at the Unknown stage, before they are launched. Brands at the Indifferent stage act like commodity products without any connection to consumers, They have little awareness. Consumers see them as basic products and have no real opinion about these brands. Brands at the Like It stage have carved out a rational point of difference in the consumers mind to help generate solid aided awareness but they are yet to translate that product success into a consumer routine. Brands that reach the Love It stage are very successful brands with strong awareness, market share and repeat purchase. They have generated an emotional bond with a select target that has led to a growing base of brand fans. Finally, at the Beloved stage, the brand becomes iconic and highly regarded by consumers. Consumers become brand lovers, similar in feelings to what we see with fans of sports teams or celebrities. They are outspoken, possessive and will defend the brand at any point.

how to create a beloved brand

Use brand funnels to track and manage the health of your brand

To read more about how the love for a brand creates more power and profits:

To learn more about this type of thinking, you should explore my new book, Beloved Brands.

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.

Beloved Brands book

To order the e-book version or the paperback version from Amazon, click on this link: https://lnkd.in/eF-mYPe

If you use Kobo, you can find Beloved Brands in over 30 markets using this link: https://lnkd.in/g7SzEh4

And if you are in India, you can use this link to order: https://lnkd.in/gDA5Aiw

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.

We think the best solutions are likely inside you already, but struggle to come out. Our unique playbook tools are the backbone of our workshops. We bring our challenging voice to help you make decisions and refine every potential idea.

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 brand 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.

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.

Our brand playbook methodology will challenge you to unlock future growth for your brand

  1. Our deep-dive assessment process will give you the knowledge of the issues facing your brand, so you can build a smart plan to unleash future growth.
  2. Find a winning brand positioning statement that motivates consumers to buy, and gives you a competitive advantage to drive future growth.
  3. Create a brand idea to capture the minds and hearts of consumers, while inspiring and focusing your team to deliver greatness on the brand’s behalf.
  4. Build a brand plan to help you make smart focused decisions, so you can organize, steer, and inspire your team towards higher growth.
  5. Advise on advertising, to find creative that drives branded breakthrough and use a motivating messaging to set up long-term brand growth.
  6. Our brand training program will make your brand leaders smarter, so you have added confidence in their performance to drive brand growth.

To learn more about our coaching, click on this link: Beloved Brands Strategic Coaching

To learn more about our training programs, click on this link: Beloved Brands Training

If you need our help, email me at graham@beloved-brands.com or call me at 416 885 3911

You have my personal promise to help you solve your brand building challenges. I will give you new thinking, so you can unlock future growth for your brand.

Signature

Graham Robertson

Founder and CMO, Beloved Brands Inc.