How successful is your brand...no really...

I was reading a story in Marketing Week yesterday about the world's most valuable brands as decided by Brand Finance and it got me thinking about how we use the word 'valuable' when evaluating a brand.  What is it that makes a brand successful?  And do people think it is just about size or share value?

In my experience, there are a number of things that contribute to a successful brand and the first place to start is understanding the brand perception and its reputation with customers and key influences.  A lot of my work is focused on helping Marketing Directors with this task and I often challenge them by asking them to answer the following questions:

• Do you know what your competitors reputations are? How does your brand compare?
• Are you losing more customers than you are gaining?
• Have you calculated the value of sales you have lost due to your reputation?
• How are you monitoring consumer generated media?
• What is the worst rumour about your brand?
• Do consumers believe what you say about your brand?
• How do you plan to change or improve consumer perception of your brand?
• What percentage of sentiment towards your brand is positive versus negative?
• Is your brand as ethical and responsible as it could be?
• Do you know how best to improve what consumers say about your brand?

If the answers to these questions are not what they should be then it is clear that they lack the knowledge and/or resources required to boost sales and work can begin on realigning the reputation of the brand with its core values.  A truly valuable brand is one that is transparent, open and honest with its customers.

 So how does your brand fare?

Brand Perception vs Reality

I am seeing many more brands trying to change the way that they are percieved by customers in an attempt to increase market share.  Any actions designed to improve the brand reputation need to also be aligned with the expectations and perceptions of the brand by existing customers.  If the desired perception is not the one currently held by customers, actions should be taken immediately to research why the market views the brand in the way that they do and what can be done to re-align their perceptions, be this by being more ethical & responsible, revising how they address poor customer experiences or if it is a service based brand by reviewing systems & processes.

Brand Reputation is something which is often overlooked, even by brands that have acted in the right way - they have forgotten to communicate what action they have taken.  A good reputation is built on many aspects of how the business thinks, acts and talks to its stakeholders.  Most organisations fail to really appreciate how much sales and success are linked to a good brand reputation and cannot calculate the value of lost sales as a result of having a poor reputation.

 I believe it is essential that all brands need to answer the following questions:

• How transparent is your business?
• Do customers really believe your message?
• Is the brand consistent with what it says and then what it actually does?
• Does the business behave ethically and responsibly?
• Which areas need improving?
• Do you have the right skills/expertise to make this change happen?