The brand momentum story : How momentum is set to reveal a new way of thinking about growth and why it will become the critical metric every company must monitor to gauge success.

Growth #1 priority

All businesses strive for growth, and it’s the top priority for CEOs, but the way this is achieved and measured varies. Since the inception of BrandVision, we’ve been looking for better ways to understand how brands grow and fall and how to accomplish it. In particular, to develop an approach that would be easy to understand, effortless to measure and simple to implement. A new book, titled ‘The Momentum Factory’ (a working title), is set to reveal a new way to think about and measure brands, making building brand strategies much easier.

How the momentum story began

The momentum story started about eight years ago when we were developing a brand measurement system called BrandVision. At the time, we spotted an interesting result that didn’t seem to mean too much, but over the years, the initial discovery is set to radically transform the way we think about brands. While conducting a study into airline brands, we found that one airline, Monarch Airlines, had a recorded low score on a specific metric we now call the Brand Velocity Score (BVS). The surprising thing was that some six months after the research, the news headlines told us that the brand had gone into administration.

Monarch sparks a revelation

The demise of Monarch, the 5th biggest airline in the UK at the time, was one of the biggest collapses in the holiday industry’s history, leaving us wondering if we had stumbled upon something that could predict the future – something no other brand metric has laid claim to. Following more in-depth research and analysis, new learnings have emerged in recent years that make momentum arguably the most powerful KPI available to marketers and is the subject of a new book that exposes this exciting new metric. The book is due for launch later this year. It’s a measure that looks at a brand’s size and velocity and how science can help marketers build stronger brands.

More evidence arrives

Monarch is not an isolated case of foreseeing brands in trouble.  We recently conducted a momentum study in the UK and the US and discovered that The Body Shop, an international skincare and cosmetics retailer, showed a weak Brand Momentum Score. Months later, on 13th February this year, the once iconic brand sadly also went into administration as the momentum score had anticipated.  The important thing here is that not only is it possible to use public perceptions to ascertain the future performance of a brand, but arguably, these perceptions are the root cause of the decline and failure.

How is it in today’s world, where sustainability and the planet are so important, how is it possible for the Body Shop to struggle? Surely now is the ideal time for the brand to fly! But through the lens of brand momentum, we were easily able to see the root cause of its problems.

This raises the vital question of why brands focus so much on brand awareness when they cannot predict the future. The same is true for most, if not all, other brand metrics, from consideration to loyalty, none of which can indicate the direction in which a brand is heading. Brands need a new way to think about their brands and focus on metrics that matter

Measuring Brand Momentum

This unique predictive power is just one of the benefits of the measurement.  Higher momentum scores are also associated with other brand advantages such as increased loyalty. Research shows that many consumers are attracted to growing brands and deterred from declining brands. Growing brands are also associated with perceptions of popularity and success, a willingness to pay more for them, and as attractive places to work or in which to buy shares. The power of momentum is mighty indeed, and understanding it can help businesses thrive and develop new consumer-based strategies for growth.

Brands are not real – they are just constructs in the minds of consumers.  Vision One helps businesses evaluate and understand these constructs through business and consumer research. We help business leaders make better decisions. Most trackers are annual, although heavier spenders typically conduct them more regularly to track the short-term impact of their marketing.  Through these changes, we can start to see which questions (metrics) are influential and related to brand performance and success.

The benefits of momentum:

Attract more customers

Brand momentum has appealing image qualities that make brands more attractive. Similarly, research indicates that brands with a negative velocity will deter new customers from buying.

Overall, the more your momentum improves, the better your top-of-funnel metrics also improve.

Improve marketing effectiveness

As brands grow, their influence in the market increases. It is known that brand mass (m) is the biggest factor in driving advertising effectiveness.

Whilst it is possible to go short periods without brand investment, in the longer term, the effects of insufficient investment can be significant, and it becomes more difficult for the brand to turn around once momentum has dropped.

Surprising benefits 

There are multiple positive effects of achieving momentum. Research shows that brands with momentum are places where people will want to work. It also attracts investors, and people are more willing to pay a premium for brands with high velocity.

Even though brand momentum isn’t tangible, it can be measured, and it shouldn’t be underestimated, as it dictates the way your brand is perceived.  Knowing how to measure it is the first step to building a momentum strategy. Momentum isn’t about profits; it’s a mindset and philosophy that puts customers at the heart of your thinking, creating positive energy and positive outcomes.