For years, the marketing industry has tracked brand equity through consumer surveys. However, more recent critiques of this approach have highlighted its inconsistency, unreliability, and inability to align with in-market performance. Part of the problem is that what consumers say is not necessarily what they do. Also, as it is often observed, brands on a downward trend retain loyal consumers that have a higher perceived value of the brand thus generating higher brand equity scores. In addition, survey-based brand equity metrics do not link directly to business levers and can’t be used to recommend specific actions to improve consumer-perceived brand value.
Market Fusion Analytics’ (MFA) solution to this problem is to utilize transactional data to measure brand equity. Every time a purchase is made, a consumer votes with their wallet. The greater the perceived relative brand value, the lower the demand elasticity and the stronger the brand. MFA believes that the analysis of observable consumer switching across category brands is the best measure of consumer-perceived brand value. Our framework is reliable as it is based upon millions of consumer purchases and actionable as it is directly linked to key business drivers.
MFA’s alternative to traditional brand equity tracking is an innovative analytical product called ValueScores. ValueScores offers a deep assessment of key brand equity metrics and guidance on levers that help improve them.
Adding ValueScores to corporate decision-making ensures focus on enduring brand power and ultimately provides a path to profitable and sustainable corporate growth.
If you are interested in learning more, please contact Tamir Choina at Tamir.Choina@maketfusionanalytics.com