Brand Keys Overview - A Guide to Predictive Brand Equity and Consumer Loyalty

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A basic overview of how Brand Keys offers predictive brand equity, consumer loyalty and engagement metrics for companies around the world.

Our measurement methodology is considered the most accurate means of predicting sales and future in-market behavior, correlating very highly with sales and profitability, and has been independently tested and validated by the Advertising Research Foundation.

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  • ARF First Opinion Review
  • Brand Keys Overview - A Guide to Predictive Brand Equity and Consumer Loyalty

    1. 1. Emotional Engagement and Loyalty Metrics CMO Institute – January 26-28, 2014
    2. 2. About Brand Keys © 2014 Brand Keys, Inc. 2  Brand Keys, a research-based consultancy specializing in emotional brand engagement and consumer loyalty metrics.  These metrics are proven to be predictive of future in-market behavior, correlating very highly with sales and profitability.  The model and methodology is grounded in psychology, allowing us to understand both the emotional and rational factors which bond consumers to brands.  The model can accurately measure the impact that any media, marketing, or communications initiative will have on future in-market behavior – in advance of the spend!
    3. 3. Some Brand Keys Clients © 2014 Brand Keys, Inc. 3
    4. 4. Dr. Robert Passikoff Named a ―2007 ARF Research Innovator‖ for development of Brand Keys Brand-to-Media Engagement Model and a 2012 ARF ―Great Mind‖ in Innovation for the Brand Keys Digital Platform GPS℠ Published and Recognized Brand Engagement and Loyalty Experts Leigh Benatar, EVP, Recipient of 2010 ARF ―Great Mind‖ Award in Innovation © 2014 Brand Keys, Inc. 4
    5. 5. “The consumer does not behave as he says, he does not say what he thinks and he does not think what he feels.” – David Ogilvy © 2014 Brand Keys, Inc. 5 PROBLEM:
    6. 6. 6 In 2007, the Consumer Decision Process was: Emotional Rational (Source: 2007 Brand Keys CLEI) © 2014 Brand Keys, Inc.
    7. 7. 7 2013: Emotional Rational (Source: 2013 Brand Keys CLEI) © 2014 Brand Keys, Inc.
    8. 8. The Ideal: Consumer’s emotional and rational view of the category, letting you understand how consumers really view, compare, and choose among category options. What yardstick do consumers use to identify exactly what will create loyalty and engagement? © 2014 Brand Keys, Inc. 8
    9. 9. Brand Keys Methodology © 2014 Brand Keys, Inc. 9 Statistically fuses the ―emotional‖ (psychological) values with the ―rational‖ ratings of attributes that bond consumers with a brand via quantitative interviews with any target segment. Result: Leading-indicator metrics proven to predict future in-market consumer behavior (trial, additional purchase, recommendation, and loyalty). Two Proprietary Lines of Questioning: 1. Psychological Assessment: Indirect Q&A; reveals what values truly drive the consumer’s in-market behavior. Quantifies what your customers really believe about a brand, not what they tell you they believe. 2. Importance Ratings on Category Attributes, Benefits, & Values: Direct Q&A rates the importance of 20+ category-specific attributes, benefits, and values (ABVs). Both lines of questioning are used to measure each brand’s equity independently. Rigorous statistical analyses (proprietary factor, regression, and causal path analyses) produce the leading-indicator metrics and insights that are presented in easy-to-read bar chart format.
    10. 10. Brand Keys Methodology (cont.) The diagnostic measurement system, based on globally accepted Jungian behavioral psychology, delivers in-depth category and brand metrics, that can: • Accurately measure emotional brand engagement. • Identify the loyalty and engagement drivers that can be strategically leveraged to increase trust, consideration, purchase and loyalty toward client brands. • Identify areas of opportunity for differentiation and innovation, providing clients with a competitive advantage. • Easily allow for testing of new and/or evolutionary concepts and product/service offerings – pre-market introduction. • Deliver layered data granularity for strategic (tracking and scorecard reporting, communications development, product/service development) to tactical (promotional, experiential, advertising) innovation. • Accurately measure the impact that any media, marketing, or communications initiative will have on future in-market behavior. • Be easily incorporated into current brand tracking research. © 2014 Brand Keys, Inc. 10
    11. 11. These psychological behavioral metrics and higher-order statistical analyses identify true category drivers − the emotional and rational decision-making factors that drive engagement 11 Carl Jung Founder of Analytical Psychology Emotional (Below the Radar) Psychological Jungian-based Personification Questionnaire Rational (Direct Questioning) Category Attributes, Benefits & Values FUSING Factor Analysis Regression Analysis Causal Path Modeling © 2014 Brand Keys, Inc.
    12. 12. Brand Keys Emotional Engagement Model (Sample Output) 100 110 120 130 140 150 160 170 Feel Good & Look Good - 29% Trusted Brand That Knows Me - 24% Innovative & Nurturing Brand For Value - 20% Effortless Transformation - 17% 168 146 160 140 Ideal Lowest Highest PotentialforDifferentiation The Four Dimensions: 1. Importance of Loyalty Drivers. 2. Contribution that each driver makes to engagement, loyalty, consideration and purchase. 3. Customer Expectation level for each Driver (indexed and benchmarked to 100). 4. Attributes, Benefits and Values in Driver and their percent contribution. 3: What do consumers expect from each driver, and where’s the opportunity for greatest differentiation for the brand? 4: What does each driver signify, and what matters most? 2: How much does each driver contribute to loyalty and purchase decision? 1: Which are the most important drivers in the category? Loyalty Drivers - Order of Importance Driver 1 Driver 2 Driver 3 Driver 4 0% 20% 40% 60% 80% 100% 5% 9% 9% 10% 13% 19% 23% Makes me feel better about myself after my makeover Helps me find products that complement one another, like lipstick/liner pairings Displays products in a well-organized and attractive way Offers micro-skin examination Offers me free samples Beauty consultant/salesperson uniform reflects the brand’s image Displays images of women I can relate to © 2014 Brand Keys, Inc. 12
    13. 13. Brand Keys Emotional Engagement Model (Sample Output) 0% 20% 40% 60% 80% 100% 5% 9% 9% 10% 13% 19% 23% Makes me feel better about myself after my makeover Helps me find products that complement one another, like lipstick/liner pairings Displays products in a well- organized and attractive way Offers micro-skin examination Offers me free samples Beauty consultant/salesperson uniform reflects the brand’s image Displays images of women I can relate to © 2014 Brand Keys, Inc. 13 Engagement Driver Attributes, Benefits and Values in Driver and their percent contribution
    14. 14. • Emotionally-derived metrics • Utilizes category-specific ideal, which identifies how customers will view a category, evaluate brands within the category, and ultimately buy within the category • 100% respondent driven • Test/re-test reliability of .93 off National Samples in the US and the UK • Recalibrated every 5 years • B2B and B2C applications • Used in 35+ countries around the world • Via independent validation, Brand Keys’ metrics have been shown to correlate very highly with positive, in-market consumer behavior and sales Brand Keys Loyalty & Engagement Model Technical Specifications © 2014 Brand Keys, Inc. 14
    15. 15. Independent Validation: Brand Keys Metrics Correlate with Sales/Profitability 24/7 Wall St., a global equity analysis firm, ran a financial equity analysis against the 598 brands included in the Brand Keys Customer Loyalty Engagement Index (CLEI). They identified 11 brands Brand Keys assessed as best meeting consumer expectations and found that 10 of those 11 brands were the market leader in their category. Aquetong Capital Advisors, an independent equity valuation firm, examined the correlation between Brand Keys brand equity metrics and brand value. Aquetong selected 10 categories from the Brand Keys CLEI, and found correlations ranging from a low of .830 to a high of .901, confirming the ability of Brand Keys assessments to predict impact on future purchase behavior, and work cross-category. The ARF ―First Opinion Research Review‖ validation of the model and methodology can be found at http://brandkeys.com/wp-content/uploads/2011/12/013007.ARFReview.BK_.pdf . © 2014 Brand Keys, Inc. 15
    16. 16. Multi-Category Experience via Brand Keys Customer Loyalty Engagement Index Airline Allergy Medication (OTC) Athletic Footwear Automobile Bank Beer (Light) Beer (Regular) Breakfast Cereal Car Insurance Car Rental Casual/Fast Casual Dining Coffee Computer/Laptop Cosmetics (Luxury) Cosmetics Credit Card Diapers E-Readers Evening News Show Flat Screen TV Gasoline Headphones Hotel (Economy) Hotel (Midscale) Hotel (Luxury) Hotel (Upscale) Instant Messaging Apps Insurance (Home) Insurance (Life) Major League Video Major Sports League MFB Office Copier Morning News Show Mutual Fund Natural Food Stores Online Brokerage Online Music Online Payment Online Retailers Online Travel Site Online Video Stream Packaged Coffee Pain Reliever (OTC) Parcel Delivery Pet Food – Canned (Cats) Pet Food – Canned (Dogs) Pizza Price Clubs Printers Quick-Serve Restaurant Retail Store (Apparel) Retail Store (Department) Retail Store (Discount) Retail Store (Home Improvement) Retail Store (Sporting/ Recreational Goods) Search Engine Smart Phones Social Networking Sites Soft Drink (Diet) Soft Drink (Regular) Tablets Toothpaste Vodka Wireless Phone Service 2014: 64 Categories, 555 Brands © 2014 Brand Keys, Inc. 16
    17. 17. The Clients Have Access to Best Practices and Insights via Brand Keys Customer Loyalty Engagement Index (CLEI) • Annual survey (2014 is 18th year) • 64 categories − 555 brands • 32,000 consumer interviews • Drawn from the 9 US Census regions • 18-65 years old • 70% phone interviews, 25% in-person for cell phone only, and 5% online. • Self-classify for category and brand usage © 2014 Brand Keys, Inc. 17 • Male/Female
    18. 18. What Emotional Engagement Metrics Can Do For Your Brand • Identify real category expectations • Identify consumer, customer and brand values, usually 12-18 months before they show up in the marketplace or in focus groups • SWOT can predictively identify strategies, imagery, and tactics that will allow brands to challenge and outmaneuver competition • Identify how brands can build consumer trust, engagement and sales. • Provide category and brand insights that can serve as a resource for customers • Help optimize budgets • Help brands grow faster and more profitably Additional Applications: • Serve as leading-indicator brand benchmark for all research and marketing activities • Provide an overview comparison of concept or ad performance • Input to brand scorecards or strategic dashboards • An engagement-based methodology to track brand performance, turning tracking into prediction 18© 2014 Brand Keys, Inc.
    19. 19. Brand Keys Loyalty & Engagement Model Applications  Predictive Category Dynamics  Loyalty and Engagement Metrics  Brand Health  Shopper Insights  Customer Experience Evaluations  Competitive Intelligence/Brand SWOT Analyses  Communications and Concept Development  Communications and Advertising Testing  Ideation and Innovation Development  Media Engagement and Optimization  Partnership and Sponsorship Evaluations  Brand Architecture Development  Easily integrated with existing brand and tracking research © 2014 Brand Keys, Inc. 19
    20. 20. 90 100 110 120 130 Taste/Reputation = 45% Quality/Trust = 25% Use/Suitability = 16% Value/Availability = 14% 114 112 123 111 109 100 114 111 106 107 112 102 97 101 106 107 Ideal Kids Cereal A Kids Cereal B Kids Cereal C 20 SWOT Analysis Loyalty Drivers – Order of Importance Highest Lowest CustomerExpectationLevels © 2014 Brand Keys, Inc.
    21. 21. 90 100 110 120 130 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 109 112 116 118 124 21 Brand HealthCustomerExpectationLevels © 2014 Brand Keys, Inc.
    22. 22. 90 100 110 120 130 Taste/Reputation = 45% Quality/Trust = 25% Use/Suitability = 16% Value/Availability = 14% 114 112 123 111 109 100 114 111 Ideal Kids Cereal A 22 Identification of Expectation Gap by Driver Loyalty Drivers – Order of Importance Highest Lowest CustomerExpectationLevels Expectation Gap = Opportunity for Differentiation Expectation Gap = Opportunity for Differentiation Expectation Gap = Opportunity for Differentiation © 2014 Brand Keys, Inc.
    23. 23. 90 100 110 120 130 Menu Variety = 45% Brand Value & Healthy Choice/Quality = 25% Customer Service = 16% Décor & Entertainment Factors = 14% 114 112 123 111 109 100 104 111 116 105 109 112 97 101 102 111 103 100 105 108 Ideal Brand Campaign A Campaign B Campaign C 23 Strategically Test Communications and Advertising Loyalty Drivers – Order of Importance Highest Lowest ExpectationLevels © 2014 Brand Keys, Inc.
    24. 24. 24 ExpectationLevels Path-to-Purchase Drivers – Order of Importance Highest Lowest 100 110 120 130 140 150 160 170 Feel Good & Look Good = 33%Trusted Brand That Knows Me = 29%Innovative & Nurturing Brand For Value = 17%Effortless Transformation = 21% 168 146 160 140 Ideal Felt better after my makeover 23% Shows me how different products complement one another, like lipstick/liner pairings 19% Product lines are well-organized and well- stocked 13% Has “perfect match” electronic calculators 12% Micro-skin examination 10% Makes free samples available 9% Beauty consultant/salesperson uniforms reflect the brand’s image 9% Has large backlit images of different cosmetics and their looks 5% Has light box mirrors that can adjust lighting for: AM, PM, or indoor 28% Has good lighting 25% Offers beauty solutions that are tailored for my lifestyle and my beauty concerns/questions 20% Creates a record of the products I’ve purchased, as well as recommendations of other crèmes, foundation, powder, eye shadow, mascara, bronzers, highlighters, line, lipstick, gloss, and nail polish brushes and applicators that might work for me 20% Provides informative cosmetic-specific booklets 5% Has stand-alone information and display cases 3% Provides treatments and equipment for all skin types you can sample in the store 29% Offers an automated beauty IQ/skincare analysis 25% Provides computerized, interactive examinations and recommendations 24% Offers gift bag promotions 13% Quick mobile credit card checkout 9% Provides professional makeovers 30% Has well-informed, well-spoken make up artists 24% Provides professional applicators, sponges, cotton balls and tissues for sampling various products 18% Has comfortable seating/stools 10% Offers classes and workshops 10% Offers boxed sets 8% Shopper Insights: Experiential Elements Linked to Drivers and Their Percent Contributions © 2014 Brand Keys, Inc.
    25. 25. Engagement and Loyalty Measures Can Be Easily Configured For a Brand’s Strategic Scorecard, Dashboard, or Tracking Metrics Emotional Engagement Index * Ideal 132 Brand + Campaign A 129 Brand + Campaign B 126 Brand 124 * Weighted Performance on Category Drivers © 2014 Brand Keys, Inc. 25
    26. 26. 26 360° MEDIA OPTIMIZATION Brand-to-Media Engagement: Best-in-class, leading-edge leading-indicator media platform optimization process. A quantitatively rigorous, empirical system that charts precise effects on awareness, brand image, brand equity and purchase behavior directly attributable to a brand’s placement in a particular media vehicle. Breakthrough Digital Platform GPS© recognizes that consumers engage with digital differently, dependent on how they engage in the category. This pinpoints the intersection of brand engagement and digital enabling brands to get very specific in messaging and very strategic in media placement. © 2014 Brand Keys, Inc.
    27. 27. Loyalty Drivers – Order of Importance Highest Lowest CustomerExpectationLevels 100 105 110 115 120 125 130 135 Location & Value =40% Merchandise Range =24% Shopping Experience =20% Store Reputation =16% 119 116 125 117 109 110 110 110 107 108 105 111 106 108 103 108 116 114 115 112 119 113 120 112 Ideal Brand Brand on Fox News Brand on Iron Chef America Brand on The Blacklist Brand on The Good Wife Brand-to-Media Engagement Measures – Media Programming Effects 27© 2014 Brand Keys, Inc.
    28. 28. CustomerExpectationLevels 100 105 110 115 120 125 130 135 B2ME Scores 119 110 108 106 114 116 Ideal Brand Brand on Fox News Brand onIron Chef America Brand on The Blacklist Brand on the Good Wife Brand-to-Media-Engagement Index Performance (Weighted Performance on Category Drivers) 28© 2014 Brand Keys, Inc.
    29. 29. Brand-to-Media Engagement Metrics ROI Correlations Correlations 0.91 0.65 0.87 0.76 0.85 Audience B2ME Score* Category-Aided Awareness Brand Strength Rating Behavior (Average # of Visitors) Viral (% posting to Facebook or texting) Sales ($) Target Promo on Dancing With the Stars 118 42% 89% 3.9 17% $28.13 Target Promo on The View 106 40% 85% 3.7 13% $20.27 Target Promo on The Closer 100 35% 86% 2.8 12% $21.91 * Weighted Performance on Category Drivers © 2014 Brand Keys, Inc. 29
    30. 30. The Digital Platform GPS© Orienting Brands in the Digital World How are consumers engaging with digital platforms in the category? How are consumers engaging with the category itself? + = Digital Platform GPS℠ - The intersection of digital platform and brand engagement © 2014 Brand Keys, Inc. 30
    31. 31. Brand Keys Digital Platform GPS Analysis For Category X 20% 19% 16% 12% 6% 5% 4% 4% 4% 3% 3% 2%2% Search Engines (Google, Yahoo) Local Listings (Yelp, Yellow Pages) Email Brand's Website Social Networks Digital Newspapers Paid Search (PPC) Display Ads & Banner Ads Online Video Mobile Apps Blog Mobile Advertising (online/apps) Digital Magazines 31 Facebook 32% Google+ 29% YouTube 17% Twitter 13% Pinterest 5% Instagram 4% © 2014 Brand Keys, Inc.
    32. 32. 100 110 120 130 140 150 Trusted Brand for Value =29% Safe to Use =25% Strong Relief =24% Family Friendly =22% 134 130 125 120 Brand Keys Digital Platform GPS Assessments Identify How The Brand Can Best Communicate Strategically CustomerExpectationLevels Loyalty Drivers – Order of Importance Highest Lowest -Shopping Portals -Digital Magazines -Digital Newspapers -Email -Brand’s Own Website - Search - Browsing Portals -Gaming -Music -Mobile Apps -Social Networks Source: 2013 Brand Keys Digital Platform Engagement Index -Online Video -Classified -Blogs © 2014 Brand Keys, Inc. 32
    33. 33. Brand Keys Advantage • A flexible system that is both innovative and comprehensive. A truly customer-centric brand benchmark for the evaluation and tracking of brand initiatives. • Independently validated loyalty and engagement model correlating highly with sales, profitability and corporate valuation. • Proprietary B2C and B2B loyalty and engagement applications deployed worldwide. • Industry recognized leading-indicator loyalty and engagement model. • Brand Keys’ metrics have been shown to correlate very highly with positive, in-market consumer behavior and sales. 33© 2014 Brand Keys, Inc.
    34. 34. 34 Annually, we look at how closely what we’ve said — based on our predictive loyalty and engagement metrics — in our blog, The Keyhole, and in our Forbes column, matched up with actual results in the marketplace. In short, to see what happened. Listen in on (or download) results in categories including smartphones, beer, retailers, cars, service providers, major league sports, and trends in 2014. brandkeys.com/brand-stories © 2014 Brand Keys, Inc.
    35. 35. Leigh Benatar EVP, Brand Keys, Inc. 212-532-6028 x15 leighb@brandkeys.com www.brandkeys.com For further information and to discuss your needs please contact: 35

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