How to Guide for Marketers

How to conduct a deep-dive review of your consumer

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At least once a year, you owe it to your brand to be doing an overall deep-dive business review. The consumer behavior is constantly evolving and maneuvering in the marketplace, influenced by market trends, economic conditions, need states, and other brand choices within the category.  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 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 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 analysis 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.

Brand Love Curve

To kick-start your review of the consumers, here are 10 probing questions:

  1. Who are your possible target consumer segments? Are they growing? How do you measure them?
  2. Who are the consumers most motivated 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 KEY segments? Share, sales, panel or funnel data, tracking scores?  What about by channel or geography?
  5. 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?
  6. 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?
  7. What are the emerging consumer trends? How does your brand match up to potentially exploit them? Where would your competitors win? 
  8. What are the consumer’s ideal brand experiences and unmet needs we can address?
  9. 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?
  10. What is the consumer’s perceptions of your brand and your competitors? Voice of the consumer. 

This consumer deep-dive is part of a larger overall deep-dive business review. To read more, click on the link below:

How to lead a deep-dive business review on your brand

My new book, Beloved Brands, coming this spring.

How this Beloved Brands playbook can work for you. The purpose of this book is to make you a smarter brand leader so your brand can win in the market. 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 be able to analyze the performance of your brand through a deep-dive business review.

 

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 graham@beloved-brands.com or call me at 416 885 3911

Graham Robertson bio

 

 

 

How to Guide for Marketers

Using brand funnel data to assess your brand’s health

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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.