How brand KPIs predict sales?

Article Dr. Lisette Kruizinga – de Vries – Senior Methodologist

In recent years, DVJ Insights has done a lot of research into what marketers consider to be the most important KPI to determine the success of marketing. What most companies have in common is that success is mainly measured by a brand’s sales or market share. Still, it is difficult to direct marketing based on sales. It is often preferred to use various brand KPIs that have the most influence on sales in order to achieve growth.

The Ehrenberg Bass Institute indicates that the main path to growth, and to achieve as many sales as possible, is the focus on penetration. Others, such as Reichheld, claim that the Net Promoter Score of Advocacy is the primary driver of sales. And others, such as Les Binet, indicate that the path to growth begins with increasing awareness. And so on and so forth. Different researchers hold different opinions, everyone finding sufficient evidence to support their own reasoning.

Especially in times of uncertainty, such as the current corona crisis, the general view is that it is important to continue investing in marketing to build a strong brand. A brand must be salient in the mind of the consumer. Several questions that may arise among managers right now, but also during other periods, are for instance: How strong is my brand? What is the average brand recognition and consideration for my brand? What are the effects of my marketing activities on my brand KPIs and sales? How do my brand equity or brand KPIs influence sales or other behavioural KPIs?

These and many more questions aren’t just applicable to managers. The academic world is also immersed with these issues.

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