Brand experiences create emotional connection and transformation – and have the power to turn visitors into evangelists, shifting them from new consumers into passionate promoters.
It looks like this:
Brand experiences => Transformed consumers => Increased loyalty and spend
Those who are on-site at field marketing events, branded attractions, and activations see this transformation firsthand, but how do executives verify their impact? Over 75% of CMOs are not confident in their team’s ability to understand the value and impact of brand experiences.
We’ve seen brands using metrics like attendance or time spent on-site – or even Net Promoter Score (NPS) to ‘measure’ and bring some data to leadership, but ultimately these are static metrics that don’t tell the full picture of the impact of the event. To solve the need for measurement (and optimization) we developed Brand Conversion Rate which isolates and measures an experience’s impact on brand perception – and it is quickly becoming the holy grail in experience metrics.
NPS Limitations and the Rise of Brand Conversion Rate
Net Promoter Score (NPS®) is a well-known 0-10 metric that has been championed by Customer Experience platforms everywhere that ask the question “How likely are you to recommend brand X to a friend”. It’s a useful metric to help to identify promoters and potential issues, but as a single reference point, it falls short in experiences.
Its biggest limitations are that it does not capture the change in brand perception over time nor does it isolate the impact of the experience. A consumer that rates a brand an 8/10 after a brand experience might have entered the experience as a 2/10, yet this valuable growth in brand love goes unnoticed. This is where Brand Conversion Rate helps to solve the challenge and bring consistency and rigor to experiential measurement.
If NPS is a measure of how big a fan someone is of your brand, Brand Conversion helps measure the degree of transformation by looking at the change in consumer’s brand perception. Simply put, it’s the percentage of detractors and passives who increased their perception of the brand after an experience. Brands are leveraging it not only at the aggregate level but also more granularly with target demographics and experience types. Brand Conversion across regions, experiences or even campaigns can be a guiding light to justify growth in experiential investment and identify opportunities for improvement.
To measure Brand Conversion, capture NPS responses both before and after a consumer attends an experience – and look to see the percentage that increased their perception. These pre- and post-experience scores provide visibility into how the same cohort of consumers perceive the brand differently after attending an experience.
How to calculate Brand Conversion Rates:
Brand Conversion = % of Detractors & passives who increased their perception of the brand
Brand Conversion effectively measures how experiences convert casual (and sometimes skeptical) consumers into brand advocates. We’re seeing customers like Michaels who are leveraging Brand Conversion and using it as a goalpost to improve their experiences and understand where to invest.
Negative brand conversion is part of the story too and is a metric that offers visibility into potential losses of loyal customers. It’s a measure of how many Promoters and Passives decreased their perception of your brand. If a loyal customer’s perception decreases after an experience, this presents a big risk and should be a red flag to immediately make some changes.
At AnyRoad, we take the Brand Conversion metric a step further to bring AI-based insights to improve and optimize experiences to drive growth, but that is a topic for another post. If you are interested in learning more about how your company can use Brand Conversion Rate, please reach out!
For additional thoughts or advice, feel free to reach out to us at [email protected].