A brand index is something which ranks how well specific brands are performing in a given category. An overall score, often referred to as brand equity, is given to each brand, and then they are ranked to give a leaderboard of sorts. Brand indexes though, aren’t universal in the metrics that are used to calculate them. In this article, we’ll look at three popular metrics that are used in brand indexes and explain what insights they reveal. Then we can see why these three metrics are such a good combination to use when it comes to calculating a brand index.
Firstly, there’s unprompted brand recall. This is calculated by giving a consumer a certain category, such as electronics, fashion, food, etc. Then asking them to name all the brands which they associate with that category. This is a good way to measure which big brands are at the top of people’s minds within a given category. Smaller businesses may prefer to use prompted brand recall. This gives a list of brands and asks consumers to say which ones they’ve heard of within a given category. However, using this metric can’t be used so easily as part of a brand index calculation.
Next, there is purchase intent. This metric is rather self-explanatory, a consumer is asked how likely they are to buy a certain brand again. Normally about four options are given, then those who answered the most positive (usually very likely) is divided by the rest.
Lastly, but no means least, there is net promoter score. Rather than looking at whether an individual will buy a brand again or not, it looks at how likely they are to recommend a brand. A similar question is asked as before but with recommendation instead of purchasing. Instead of categories of likeliness though, they’re given a scale of 1-10. Then the scores of nine or ten are divided by the total amount of people asked. This can often show a deeper loyalty to a brand than simply purchasing it.
These three metrics work well together, as none of them relies on one another. Purchase intent shows an individual’s financial commitment to a brand, while a net promoter score shows how vocally positive a consumer is about a brand. These are two very different psychological consumer processes. While unprompted brand recall reveals the most visible brands, not necessarily the ones consumers purchase. So, if these are all added up together an accurate brand index can be compiled.