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1. How To Guide
Establishing a Brand Scorecard
Executive Summary:
This report has been designed to provide practical advice for
benchmarking and improving your branding capabilities.
Read this brief 7-page report to learn:
 Brand Management Defined
 Principles of a Strong Brand
 What is Brand Equity?
 Capabilities Required to Measure Brands
 Establishing a Brand Scorecard
Read this report to learn how to prepare your organization for effective
brand management. Use our tools to develop a Brand Scorecard that
demonstrates increased Customer-Base Value.
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2. 2
Table of Contents Page
Brand Management Defined 3
Principles of a Strong Brand 3
What is Brand Equity? 4
Capabilities Required to Measure Brands 4
Establishing a Brand Scorecard 5
Conclusion 7
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3. 3
Brand Management Defined
Brand management is the application of marketing techniques to a
specific product, product line, or brand. It seeks to increase the
product’s perceived value to the customer and thereby increase brand
franchise and brand equity.
Marketers see a brand as an implied promise that the level of quality
people have come to expect from a brand will continue with present and
future purchases of the same product. This may increase sales by
making a comparison with competing products more favorable. It may
also enable the manufacturer to charge more for the product.
The value of the brand is determined by the amount of profit it
generates for the manufacturer. This results from a combination of
increased sales and increased price.
- Source: Wikipedia
Principles of a Strong Brand
Proctor & Gamble PLC pioneered the concept of Brand Management as a
result of a memo sent by Neil H. McElroy.
Following are principles of a strong brand:
 Distinguished - is your brand “premium” or “economy”? Does
your brand express the brand type adequately?
 Enhance Image - does your brand accurately reflect and
enhance the corporate/product image?
 Benefit/Usage - does your brand describe the benefits of your
product, or how it is used? (i.e. Mr. Clean)
 Simple - is your brand recognizable and memorable?
 Protectable - can you legally protect your brand?
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4. 4
What is Brand Equity?
Brand Equity can be defined as the value measurement associated with
expected future revenues for the branded product. Many organizations
use a Brand Scorecard in conjunction with a Marketing Dashboard
to measure their return on marketing investments. The metric that can
be used to measure overall Brand Equity is Customer-Base Value.
Customer-Base Value (CBV) - the total number of customers
multiplied by the net present value of those customers (gross profit
contribution) over their average lifetime.
Factors that influence the Customer-Base Value metric include:
 Customer Retention Rate
 Net Present Value for Each Customer
 Brand Awareness & Preference
 Corporate/Product Image
 Purchasing Intentions
 Customer Satisfaction
 Customer Referral Rates
Capabilities Required to Measure Brands
1. Senior Management Commitment - it is critical that Branding
is viewed as a strategic endeavor and is driven top-down from
the C-level. Otherwise, investments to strategically improve
brand equity will not be approved.
2. Internal Brand Alignment - have you conducted an internal
brand survey? Since much of branding takes place during
conversations and via email, you need to know how your
employees view the organization. If there is a gap between
senior management’s and front-line customer service’s view, it
needs to be resolved.
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5. 5
3. Market Research Data - do you have any empirical data that
demonstrates customer/market segment preferences,
satisfaction, referral rates, purchasing intentions, and other
important market research data.
4. Data Management - you need to be able to collect and
manipulate marketing metrics and find causal links that connect
them to high-level business metrics. For help in this area, read
our report on Marketing Dashboards.
5. Systems & Technology - once you have built the discipline to
collect the relevant brand equity data, consider housing your
data in systems such as Customer Relationship Management
(CRM), Enterprise Resource Planning (ERP), or other enterprise
applications. Next, use these applications to generate reports
such as “total number of customers”, “net present value of
current customer base”, or other brand equity reports.
6. Brand Goals, Objectives, & KPIs - once you have the
information, systems, and skills required to measure your brand
effectively, take the time to strategically plan for brand
improvements. Take a Balanced Scorecard approach to brand
measurement by selecting specific Objectives, Measures, Targets,
and Initiatives.
Establishing a Brand Scorecard
Creating a simple Brand Scorecard does not have to be as intimidating
as it may sound. This section will outline the steps required to build an
effective tool to measure your brand.
1. Achieve Brand Consensus - have a meeting with key brand
stakeholders to ensure you have alignment on your corporate
mission, vision, values, etc. Use our Branding Selection Tool
for assistance.
2. Dig up Historical Information - track down any previous
market research data, customer satisfaction surveys, and
customer data such as: # of customers, average lifetime,
average profit/customer, net present value of current customer
base, market share, etc.
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6. 6
3. Gather New Information - if you don’t have much information
to go from, consider doing a small market research project to set
benchmarks for brand awareness, preferences, purchasing
intentions, etc.
4. Set Branding Goals & Objectives - your goals may be to
improve C-level awareness of a specific product, to achieve
commitment to brand values from customer-facing
representatives, or increase understanding of value propositions
amongst specific media sources.
5. Determine Specific Targets & Actions - this part of your
scorecard deals with HOW you are going to achieve your goals &
objectives. For example, you may wish to target the Sales &
Service organizations to improve collateral, presentations, scripts
& messaging. You might want to target All Employees with a
brand revitalization effort.
6. Define Measures of Success - like all objectives, you need to
determine how success will be measured, BEFORE you kick-off
your initiative. These are the Key Performance Indicators (KPIs)
that will be monitored to demonstrate improvement. Using
Primary and Secondary success measures will help you
differentiate subtle improvements within a specific target area.
7. Establish Goal Timeframe - you last step is to break the
larger, overarching goals into more manageable pieces. If you
are targeting Sales to use a new presentation deck, set a goal
like: “have 50% of sales team using new presentation deck by
June 1st, 2007.”
8. Build your Brand Scorecard - now that you understand each
step of the process, use Demand Metric’s customizable Brand
Scorecard Tool to create your own framework.
9. Benchmark Current Brand Score - take a snapshot of your
current Customer-Base Value and other brand-related metrics to
set a stake in the ground.
10. Demonstrate Brand Scorecard Improvement - revisit your
Brand Scorecard quarterly and report on the success of your
initiatives to demonstrate effectiveness.
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7. 7
Conclusion
Brands are intangible assets that are difficult to measure. That being
said, it is not impossible for an organization to benchmark and
demonstrate improvements to brand equity for a reasonable cost. If you
do not have much experience with Branding and have a strategic
imperative to measurably improve your brand, consider getting help
from a consultant.
Based on the best practices described in this report, and tools provided,
you should be able to get started with a branding program. If you need
more clarity, contact your Research Associate who can provide you with
more tailored advice.
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(866) 947-7744