How to Measure the Strength of a Brand
Summary
- I measure brand strength by how much I can raise my prices compared to a competitor without losing customers.
- If I have two similar products and put my brand on one, I see how much more I can charge for that branded product.
- This can be done for an individual or across many people to see overall brand strength in a specific audience.
- For example, college kids might be willing to pay three times more than middle-aged moms.
- I use this data to figure out the potential profit by segmenting the audience and doing the math.
Video
How To Take Action
I would suggest implementing a few simple steps to measure and improve your brand strength quickly and effectively.
Step 1: Evaluate Price Elasticity
First, test how much more you can charge compared to competitors without losing customers. Start by having two similar products. Put your brand on one and see how much more you can charge for it. Check if customers still buy it despite the higher price. This helps you understand your brand’s value.
Step 2: Segment Your Audience
Next, segment your audience to see which groups value your brand more. For example, you might find college students willing to pay more for your product compared to middle-aged moms. Prioritize marketing to these high-value segments to boost profits without extra costs.
Step 3: Conduct Pricing Surveys
Run simple pricing surveys to gather data on what different audience segments are willing to pay. Use online tools like Google Forms or SurveyMonkey to collect responses. This low-cost strategy will give you valuable insights into your audience’s buying behavior.
Step 4: Analyze and Adjust
Once you have the data, do some basic calculations to determine potential profits from each segment. Focus your efforts on the groups that are willing to pay more. Adjust your pricing and marketing strategies accordingly.
Using these simple steps, you'll be able to measure and improve your brand strength without spending a lot of money or time. This will lead to higher profits and a stronger market position.
Quotes by Alex Hormozi
"How much you can raise your price relative to a competitor's version of your product without losing customers"
– Alex Hormozi
"How much more can I raise my price before losing a customer"
– Alex Hormozi
"How strong the brand is with that person"
– Alex Hormozi
"Just overall across this audience or this segment we have really strong pricing power"
– Alex Hormozi
"How many of these slices can I cut and how much profit can I get"
– Alex Hormozi
Full Transcript
how do you measure a brand strength financially and so I see this as how much you can raise your price relative to a competitor's version of your product without losing customers if I have two products that are more or less the same product and I slap my brand on it how much more can I raise my price before losing a customer now you can do this on an individual which would then dictate how strong the brand is with that person or you can do it across many people and say just overall across this audience or this segment we have really strong pricing power and like when you do pricing surveys across like huge populations sometimes it's like college kids their willingness to pay is three times higher than middle-aged moms interesting to know and then you just do some math on like how many of these slices can I cut and how much profit can I get and then you you make your decision based on that
