Just like the human body, a brand to requires regular check-ups to stay fit. It’s not just about sales figures or social media likes; it dives deeper. Brand health is a vital sign for businesses, giving a clear picture of a brand’s overall strength and vitality. The overall wellness check tells you how your brand is doing.
It’s about understanding whether customers recognize and trust your brand, if they would choose it over others, and if they’ll stick with you in the long run. Regular check-ups on your brand’s health can guide your marketing strategies, helping your brand grow stronger and thrive.
Let’s take a closer look at why it’s such an important part of your business strategy, how to accurately measure it, and what steps to take if your brand’s health needs a boost.
What is Brand Health?
Brand health refers to the overall well-being and strength of a brand.
A healthy brand is one that is favorably recognized, deeply resonates with consumers, and holds a strong competitive standing. Monitoring brand health regularly allows businesses to identify areas for improvement, make strategic decisions, and steer the brand towards sustainable growth.
According to a study by McKinsey & Company, brands with superior brand health enjoy a market share that’s 20% higher on average than those with weaker brand health.
Why is Brand Health Important?
In a world where competition thrives and consumers are bombarded with countless choices, brand health plays a pivotal role in the survival and growth of any business. But why exactly is brand health so important? We will talk about the five compelling reasons:
1. Increases Customer Loyalty
A healthy brand commands a high degree of customer loyalty. A classic example is Apple. Despite numerous competitors in the market, Apple’s brand health remains strong because it has cultivated an impressive level of customer loyalty.
People associate the brand with innovation, quality, and prestige, and this strong brand image ensures that customers return time and time again.
2. Helps Differentiate from Competitors
With a healthy brand, businesses can effectively stand out in a crowded marketplace. Consider Starbucks, for instance.
There are countless coffee shops out there, but Starbucks’ brand health is a testament to how well they differentiate themselves. Their consistent focus on atmosphere, service, and quality has led to a strong brand image that sets them apart.
3. Attracts Talent
A brand with good health isn’t just attractive to customers and appeals to potential employees. Google is a prime example. They attract top talent worldwide thanks to their strong brand reputation as a forward-thinking, creative, and employee-centric business. These reasons are what help them stay atop the tech sector.
4. Facilitates Expansion into New Markets
A strong brand can pave the road to entering new markets or introducing new products. Amazon started as an online bookseller but has since successfully expanded into many different markets, from tech gadgets to grocery delivery.
This is in large part thanks to their strong brand health, with customers associating Amazon with convenience, variety, and reliability.
5. Provides a Safety Net During Crisis
A strong brand can act as a safety net by fostering customer trust during difficult times. Consider the case of Johnson & Johnson, which faced a significant crisis in the 1980s when some of their Tylenol capsules were tampered with, leading to several deaths.
Despite this, the company recovered, partly due to its historically strong brand image and transparent and responsible handling of the situation.
ALSO READ: 10 Steps to Conduct a Successful Brand Audit7 Ways To Measure Brand Health
The notion of brand health extends beyond just having a recognizable logo or a catchy tagline. Whether you are an entrepreneur, a marketing executive, or a brand manager, measuring your brand’s health is crucial to your organization’s success.
Let’s delve into eight effective ways to measure brand health:
1. Brand Awareness
Brand awareness is about how familiar your target market is with your brand. A simple way to measure this is by conducting surveys asking consumers if they recognize your brand or its specific products/services.
For example, Coca-Cola is a brand with high brand awareness; it’s almost impossible to find someone unfamiliar with it.
2. Brand Recall
This refers to how easily your brand name comes to mind when people think about your product or service category.
For instance, brands like McDonald’s or Burger King might instantly come to mind if you think about fast food. Surveys and quizzes can help measure this aspect.
3. Brand Reputation
Brand reputation is the perception people have of your brand. Are you known for quality products? Great customer service? Social responsibility? Online reviews and social listening tools can provide a sense of your brand’s reputation.
A prime example of a company with a strong reputation is Patagonia, widely recognized for its commitment to sustainability.
4. Customer Satisfaction
High levels of customer satisfaction indicate a healthy brand. Measuring this can be done through customer satisfaction surveys or net promoter scores (NPS).
Companies like Amazon consistently score high on customer satisfaction due to their seamless user experience and customer service.
5. Customer Loyalty
Brand health is also reflected in the loyalty of your customers. Metrics like repeat purchase rates and customer retention rates are key indicators.
With its “Apple ecosystem” and high-quality products, Apple enjoys high customer loyalty.
6. Market Share
Market share is a concrete measure of how your brand is performing against competitors. A growing market share can indicate a healthy brand.
Samsung, for instance, holds a significant market share in the smartphone industry, indicating its strong brand health.
7. Employee Advocacy
A brand isn’t just about consumers; it’s about employees too. If your employees believe in and promote your brand, that’s a good sign of brand health.
Google, known for its employee-friendly culture, has high employee advocacy, which contributes to its strong brand.
How Do You Improve Brand Health?
Brand health isn’t just a luxury for large-scale corporations; it’s a necessity for businesses of all sizes, from start-ups to multinational companies. Whether you’re launching a new product line or simply trying to increase your customer base, understanding your brand’s health is key.
However, with many aspects to consider, improving brand health might feel like a daunting task. Here are a few ways you can improve your brand’s health:
- Strengthen Your Brand’s Positioning
Brand positioning is all about how your brand is perceived in the minds of your customers relative to your competitors. To improve your brand’s health, having a distinct brand positioning is essential.
This requires understanding your unique selling propositions (USPs) and effectively communicating them to your target audience.
Example: Tesla positioned itself as another car manufacturer and a leader in electric vehicles and sustainable energy. This distinctive positioning sets it apart from traditional automakers and resonates with environmentally conscious consumers.
ALSO READ: From Stagnation to Success: Guide to Brand Repositioning- Ensure Consistency Across All Touchpoints
Consistency in brand messaging, design, and customer experience across all touchpoints helps build brand recognition and trust. Whether it’s your website, social media, customer service, or offline marketing materials, ensure your brand voice and look remain consistent.
Example: Coca-Cola has managed to maintain a consistent brand image and message across all channels. Their signature color, logo, and “Open Happiness” tagline can be recognized globally, contributing to their strong brand health.
- Prioritize Customer Engagement
Engaging with your customers is not just about posting on social media. It’s about creating meaningful interactions, providing value, and building relationships. This involves active listening, being responsive, and showing empathy.
Example: LEGO has excelled in customer engagement by creating an online community for LEGO enthusiasts, running competitions, and engaging with customers directly on social media. This has fostered a sense of belonging among its customers, boosting brand loyalty and health.
- Regularly Monitor and Respond to Customer Feedback
Collecting and analyzing customer feedback helps you identify areas for improvement, align your offerings with customer expectations, and demonstrate that you value customer opinions. This can be done through surveys, review platforms, or direct interactions.
Example: Amazon consistently utilizes customer feedback to improve its services. They take notice of reviews, ratings, and Q&As on their platform. They make necessary changes to enhance the customer experience, thereby improving their brand health.
ALSO READ: How to Craft Effective Brand Survey Questions?- Embrace Innovation
Brands that resist change often struggle to maintain their brand health. Staying relevant requires embracing innovation, whether it’s in your products, services, or the technology you use to deliver them.
Example: Apple is a brand synonymous with innovation. Their constant pursuit of technological advancements and design improvements, from the iPod to the iPhone, keeps them relevant and improves their brand health.
Conclusion
Maintaining brand health is not a luxury—it’s a necessity. A company’s long-term success depends on its ability to monitor and manage its brand health in the face of increasing competition and shifting market conditions.
After all, a healthy brand is not just about thriving today—it’s about setting the stage for success tomorrow. However, improving brand health isn’t a straightforward or overnight task. It takes strategic planning, ongoing commitment, and a customer-centric approach.
Remember, a healthy brand is the cornerstone of a successful business. Stay tuned to our blog for more insights and strategies on brand building and management.
