Measuring Your Brand Success
Small Business Essential KPIs to Track
As a small business owner, you know that building a strong brand is essential for success. A strong brand not only supports you to stand out in a crowded market, but it also builds trust and loyalty with your clients. But how do you know if your branding efforts are working? That's where key performance indicators (KPIs) come into play.
KPIs are measurable metrics that help you track progress towards your business goals. They provide objective data that can help you make informed decisions about your marketing and branding strategies. In this article, we'll discuss the essential KPIs that every small business should track to measure their brand success.
Before we dive into the essential KPIs, it's important to understand what they are and why they matter. KPIs are specific, measurable metrics that indicate how well your business is performing. By tracking KPIs, you can gain insights into what's working and what's not, and make data-driven decisions about where to focus your efforts.
The key difference between KPIs and other types of metrics is that KPIs are directly tied to your business objectives. For example, if your goal is to increase brand awareness, you might track KPIs such as website traffic, social media engagement, or brand mentions. If your goal is to increase sales, you might track KPIs such as conversion rate, customer lifetime value, or average order value.
Now that we've covered the basics of KPIs, let's dive into the essential KPIs for measuring brand success.
Brand Awareness KPIs
Brand awareness is the extent to which your target audience is familiar with your brand. It's a crucial element of brand success, as it's the first step in building trust and loyalty with your clients. Here are some KPIs to measure brand awareness:
Social media engagement - Tracking the number of likes, comments, shares, and followers on your social media profiles over time, can help you gauge your brand's visibility and engagement on social media platforms.
Website traffic - Analysing website traffic can give you insights into how many people are visiting your website, how long they're staying, and what pages they're viewing. This can help you understand how well your website is performing as a brand-building tool.
Brand mentions - Tracking the number of times your brand is mentioned on social media, news articles, and other online sources can help you measure your brand's visibility and reputation.
Sales and Revenue KPIs
While brand awareness is important, the ultimate goal of branding is to drive sales and revenue. Here are some KPIs to measure sales and revenue:
Conversion rate - This is the percentage of website visitors who complete a desired action, such as making a purchase or filling out a form. Tracking your conversion rate can help you identify areas for improvement in your sales funnel.
Customer lifetime value - This metric measures the total value of a client's purchases over their lifetime as a customer. By increasing customer lifetime value, you can boost revenue without necessarily increasing the number of clients.
Average order value - This KPI measures the average amount a client spends per purchase. Increasing your average order value can lead to increased revenue and profitability.
Customer Engagement KPIs
Customer engagement refers to the level of interaction between your brand and your clients. Building strong customer engagement can lead to increased loyalty and repeat business. Here are some KPIs to measure customer engagement:
Email open & click-through rates - Tracking the number of people who open and click through your email campaigns can help you understand how engaged your email list is with your brand.
Social media engagement - Similar to measuring brand awareness, tracking social media engagement metrics such as likes, comments, and shares can help you understand how engaged your audience is with your brand on social media.
Customer retention rate - This metric measures the percentage of clients who continue to do business with your brand over time. By focusing on increasing customer retention, you can reduce churn and build a loyal customer base.
Brand Reputation KPIs
Brand reputation is the overall perception that your audience has of your brand. A strong brand reputation can lead to increased trust, loyalty, and advocacy. Here are some KPIs to measure brand reputation:
Net Promoter Score (NPS) - This metric measures the likelihood of clients to recommend your brand to others. It can be a useful indicator of overall brand sentiment and loyalty. Simply ask you clients after the product / service is delivered, how their experience was and how likely they are to recommend. If they say yes, have them stick to it. Pick a date for a social post and even offer a social post trade to activate both your businesses. Win-Win!
Online reviews - Tracking the number and sentiment of online reviews on platforms such as Google My Business, your site’s shop and social media can help you understand how your audience perceives your brand. Once you have a great review, screenshot it and post it on your social accounts. Prospective clients need to see that your existing clients value your work. This is easy to accomplish.
Brand sentiment - This KPI measures the overall sentiment of conversations about your brand on social media and other online sources. By analysing brand sentiment, you can identify areas where your brand may need improvement or where you're excelling. Then see what post did the best and post a variation of the same theme to see if you can duplicate the results. If it’s working, keep going…
Measuring your brand success is essential for small business owners. By tracking KPIs, you can gain valuable insights into how your branding efforts are performing and make data-driven decisions about where to focus your resources. The essential KPIs for measuring brand success include brand awareness metrics such as social media engagement and website traffic; sales and revenue metrics such as conversion rate and customer lifetime value; customer engagement metrics such as email open and click-through rates and customer retention rate; and brand reputation metrics such as NPS, online reviews, and brand sentiment.
Remember to track your KPIs consistently over time and make adjustments to your branding strategies as needed. With a strong understanding of your brand metrics, you can build a powerful brand that resonates with your audience and drives long-term success for your small business.