To assess the “health” situation of a brand, people often use the following 3 indicators as the most necessary and basic criteria for an overview and completeness. Explore with Malu 3 important indicators to evaluate brands.
Sales performance is the number 1 criterion for small and medium-sized companies to reach the big sea. To evaluate sales performance, we usually rely on three main aspects:
- More customer demand
- Higher Profit
- Less competition
Of course, the sales performance metrics mentioned above are extremely useful metrics for your brand value. You can easily track these metrics through customer interactions with social networking sites, or the traffic of your company’s Website.
But do marketing activities have an impact on sales? The three “V” rule below will answer the above question:
Three-letter “V” rule on enhancing brand value
According to economist Jeremy Miller’s book Sticky Branding, he introduced the concept of three “Vs” to explain the secret to enhancing brand status. These three “Vs” represent three criteria:
- Volume: Market demand for your business’s goods and services.
- Velocity: The amount of time from the moment a customer starts the buying process, until the closing of the sale is fast or slow.
- Value: The ability to preserve the value of a product, i.e. sell at a high price without having to use discounts.
Volume, Velocity and Value are three extremely important criteria to enhance brand value. For more quantitative indicators, we can interpret them in three terms as follows:
It is always easy to say, but applying the definition to the actual activities of the business is difficult. So, let’s dive into each “V” for a more realistic look:
Volume: Demand for goods and services your business provides.
To calculate the demand for goods and services of your business in the market is not too difficult, but how to “pull” the demand curve up is the real challenge.
Adam Morgan, author of the book Eating the Big Fish (roughly translated: Acquisition of “big fish”), has made a very intuitive observation that: The market leader often has three times more profitable than the competitor right behind it. The third place only earns half the profit compared to the second ranked business.
According to Morgan, “If profits help businesses have more choices, from investing in resources to creating competitive advantages in the future, then this difference widens the gap between the leader and the competitors. the opponent behind is enlarged”.
Obviously, the gap between the leader, the runner-up and those who follow behind is huge. This is the reason why it is so difficult to “stimulate” the market and improve the brand awareness of businesses.
In order for your brand to spread, there is no other way, you must market them more effectively and strongly than your competitors, instead of just focusing on sales activities.
Velocity: The speed at which customers buy products
Fast, efficient are adjectives used to describe the speed at which customers buy products that every business wants. To increase this index, businesses need to pay attention to effectively exploit the following criteria:
Clarity (Clear): In the messages you want to convey in your brand, they need to be clear, making customers immediately understand, crave, and convert to purchase action.
Desire: Among many options, customers must choose your product first.
Process: You must closely link your website, Marketing channels, and sales department. Whatever the customer wants, your brand must respond immediately. Thus, the sales process and closing sales between businesses and customers becomes effective.
Tracking sales activity requires a few principles as follows:
1. Build a sales scenario: Preset scenarios that can happen in the customer’s sales process, from brand recognition, to consideration, decision, while purchasing and closing sales .
2. Tracking CRM system (Customer Care Management System): Setting up and tracking customer’s purchasing process based on the CRM system, thereby determining the time rotation from the moment the customer arrived. customers approach the product, until the closing of the sale.
Once the above principles are strictly followed, it is only a matter of time before the sales process is reduced. But, there is an even better method:
The golden key for this activity lies in the principle “Two Call Close”, which means closing sales in just two calls. This method makes it possible for your business to sell large orders (from $10,000 to $75,000) in just two customer calls, in two weeks. Holding this secret, you are free to pick “money flowers”, in a very short time.
Value: Selling without worrying about discounts
Did you know that: Every time you go to the country to reduce the price of a product, every time the money in your wallet “goes out”, and also every time your brand value drops.
A strong brand always sets a fixed price. Customers recognize the true value in that brand, and choose it first among thousands of similar products. “Oh my cheap”, in a fair competition market, customers know that quality products do not come from cheap brands, often reducing prices.
Therefore, building a strong brand is the number one priority of success. It’s like if you want your house to be safe and away from potential dangers outside, you need to build a strong and solid fence. The following suggestions will help you build a strong brand:
- Improving customer value can be achieved by developing and maintaining relationships and customer care activities.
- Attract customers and reduce churn rate. Do whatever it takes for customers to find the product themselves, and stick with it.
- Minimize the continuous price jump (such as increasing and decreasing the selling price of products regularly), because the selling price is the first factor that customers pay attention to in choosing a product. chemistry.
In addition, another way to measure your brand value is how you reduce the price of goods. Follow your business’s CRM, or accounting management system, to get the following information:
- In each transaction, how much do you discount?
- How much does it cost you for the monthly sale?
Regular price reductions are like dropping gold in a three-gang bag. If you’re using a price cut to gain market share, it’s a pricing tactic, not a strong branding tactic.
Always monitor activities first
The 3V Principle is very powerful in evaluating your brand. But without close monitoring, the effect will not be as desired. How to monitor these activities? Please answer the questions below
- Is there a way we can dynamically change our monthly and quarterly strategies?
- What strategies, activities, and market factors affect the 3V indices?
- Can we do better? And how?
In short, the 3V method plays a very important role in helping you to increase brand value, only by quantitative indicators. This is a great way to do it, using brand and Marketing activities to increase sales performance and, as well as, help you evaluate your brand in an increasingly competitive market, increasingly land crowded, more and more people like now.
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