The real ROIs, KPIs, and FYIs of Branding
When you hear the letters ROI or KPI, what’s the first thing you think of?
Numbers? Hard Data? Facts?
Whatever comes to mind, I’m guessing it’s a tangible measure of success. Numbers are hard to argue with. But what about the intangible measures of success? Are they not just as important, and can they, in fact, lead to tangible measures of success?
Absolutely.
As branding professionals, proving a direct correlation between our efforts and tangible ROI can be challenging. While it’s not quite as linear as, say, digital marketing, it does exist and can be done. Measuring dollars is essential—there’s no question about that. However, we’d like to challenge you to explore four intangibles that also deserve measuring, along with some stats and data to back us up.
Intangible #1 – Clarity
Who are you, and why do you exist? What do you have to offer that others don’t? Who and why should anyone work for you?
Nailing down the answers to these key questions (along with many others) is the first step in the branding process and the only way to gain clarity and a central core from which your company operates and a solid internal culture may grow. It gets all those thoughts on paper about who and what you are about and, more importantly, where you are heading and why. Branding is your long game and helps craft a vision for the future. It gets everyone on the same page moving toward the same goal.
In what ways can you measure the ROI of clarity?
For this intangible, let’s take a look at your hiring and firing. On average, losing an employee costs around $15,000. Turnover also causes disruption and uncertainty among your team. When, along with qualifications, you hire based on brand principles, the culture you desire, and confidence in who you are as a company, you significantly increase your chances of hooking a solid candidate who’s likely to stick around because, well, they like you!
KPIs:
– Time saved in recruiting efforts
– Time saved from reduced onboarding
– Reduced turnover
– Increase in quality candidates during the recruiting process
ROI: At least $15K for each employee you didn’t lose.
(For additional information on how branding can impact employee retention, here’s a great article from The Muse!)
Intangible #2 – Alignment
Sadly, 85% of employees are not engaged at work. In our opinion, this has much to do with the lack of internal brand alignment. Until recently, branding was used primarily as a sales tool, meaning it said everything customers wanted to hear and enticed buyers with pretty pictures and designs. However, the rise of the internet and social media forced companies to start living up to their brand promises. People began to demand transparency and the necessity for what some call “Employer Branding.”
What is Employer Branding? In a nutshell, it’s aligning and treating employees with the same brand promises you do your customers. Branding can only reach its peak benefits when shared (and lived up to) externally with customers AND lived out internally throughout the business.
The result? Happy people. When employees are inspired, motivated, and fulfilled at work, they work harder, are more creative, more productive, and are more willing to make the most of their time working for you. While happiness—and even more so alignment—can be difficult to measure, here are a few stats and KPIs you can keep an eye on.
ROI: According to Gallup, an engaged workforce enhances profits by 21%, increases productivity by 17%, and reduces absenteeism by 41%. Dang!
KPIs:
– Increase in positive internal surveys.
– Increase in employee social interaction.
– Increase in positive performance data.
– Increase in employee collaboration and interaction.
– Increase in punctuality and decrease in absentee rates.
– Increase in positive client/customer interactions.
– Increase in employee loyalty
– Increase in positive word-of-mouth
– Increased referrals through employees
– Increased job applicants through employee referrals
(AIHR provides a great resource for measuring the ROI of employee engagement. But before you get out your ruler and expect to see great numbers, seriously consider the time you’ve invested to ensure that what rules your brand on the outside matches how you live on the inside.)
Intangible #3 – Authenticity
Brand or company authenticity does not just happen. It must be achieved. How? Through a consistent display of what you say, show, and do over an extended period and a customer experience congruent with what you promise.
Why is authenticity important? Because it’s what people want—both consumers and employees. Plus, “presenting a brand consistently across all platforms can increase revenue by up to 23%.” (Forbes) However, “only 48% of employees believe their leadership team, corporate communications, HR and marketing departments all speak about their brand with a unique voice.” (Exchange) Yikes!
Ok. So, measuring authenticity gets a little tricky. So, let me give you an example of what brand authenticity is not. I once had a job as a hostess at a seafood restaurant (that I shall not name, like ever) that promises to this day to serve the highest quality seafood (which I guess means fried), does not have a website, and has a two and a half star rating on yelp. The high-quality promise didn’t and still doesn’t meet a high-quality experience online, in person, or as an employee. Nothing about this restaurant is transparent, consistent, and certainly not authentic.
ROI: This can become complex and involve NPSs and CSATs (whatever those are). However, I do know the first step to building brand authenticity is infusing your MMV (mission, vision, and values) across all aspects of your business.
KPIs:
– Positive social media engagement by employees (Forbes has provided you 15 wonderful tips for helping employees become brand advocates primarily on social media.)
– Positive social engagement by others
– Positive online reviews
– High customer satisfaction rate
Intangible #4 – Sanity
What if I told you branding could make your life easier or better? And that doesn’t just apply to the business owner—it applies to everyone from the bottom up. How so? As we mentioned in our first intangible, branding gives a company a central point from which everything operates. This leads to clarity, which leads to better communication, understanding, expectations, efficiency…the list could go on.
But these are all quite intangible concepts, so here are a few tangible examples:
1 – Those in charge of hiring and firing now have guardrails and no longer need to wonder if an employee is a fit. If they do not align with who you are and what you value, then they don’t belong. No more wondering, “Is it me or them?” It’s them, and you are justified in letting them go. Whew.
2 – For those in the marketing department, their job shifts from reactive to intentional. Goals have been clearly defined, and branding has provided the words and visuals for the right communication to get you there. No more reinventing the wheel or relying on fade-driven gimmicks. What a relief!
3 – For those working tirelessly day in and day out, branding has shown them that you have a head and a heart. It has given them a reason beyond profit motivations to show up daily and give their best. Branding gives them not just a job but meaning and purpose. It gives them sanity.
ROI: Can you put a price on sanity?
KPIs:
– Less stressful hiring and firing process
– More efficient and effective marketing
– Increase in team happiness and morale
In summary, there are stats and facts to back up the benefits of branding. There are KPI’s and ROIs. But some of it just comes down to common sense. Would you rather work for a company with a scant online presence and mismatched marketing or for one that practices what they preach and looks good doing it? Would you rather run a company with clarity and happy people or keep reinventing the marketing wheel and hiring misaligned employees? Branding is your long game. It’s the investment in which smart business owners understand that the ROIs may look slightly different. They may be intangible, but they are worth paying attention to and definitely worth the investment.
Have you seen the intangible benefits of branding firsthand? Please share in the comments below!
In the meantime, if you are ready to invest in building a strong brand that delivers more than just a fat bottom line, let’s talk. We’re here to do just that.