Brand Perception: The Key to Customer Hearts and Wallets

Your brand is not what you say it is. It‘s what they say it is.

Marty Neumeier said it best. Ultimately, your brand lives in the minds of your customers. It‘s the sum of their perceptions – the thoughts, feelings, memories, and associations they have about your company.

Shaping those perceptions is simultaneously one of the greatest challenges and opportunities facing brands today. Get it right and you‘ll gain a loyal army of advocates and a powerful competitive edge. Get it wrong and you‘ll join the graveyard of forgotten companies.

So how well do you know your brand‘s perception? How can you decode what customers really think and feel about you? And what levers can you pull to sway perceptions in your favor?

Let‘s dive in.

What is Brand Perception? A Deeper Dive

At its simplest, brand perception is what customers believe a brand to be. But there are a few key aspects we need to unpack:

1. Brand perception is the sum of every interaction a person has had with your brand – not just your marketing messages but your product experience, customer service, earned media, and more. It‘s shaped by a 360 degree view.

2. Brand perception lives at the individual level. No two people will have the exact same perception of your brand based on their unique experiences and interpretations. Aggregate individual perceptions up and you get your overall brand reputation.

3. Brand perception blends rational and emotional elements. It‘s a mix of what people think about your factual attributes (e.g. your product features) as well as how you make them feel (e.g. your brand personality).

Now let‘s clear up some terminology. Brand perception is closely related to a few other branding concepts:

• Brand awareness is simply whether people know your brand exists. Brand perception is the next step – what they think about you.

• Brand image is the desired perception you want to create through your branding activities. Think of it as your identity from the company perspective.

• Brand identity is the outward expression of your brand, including your logo, colors, voice, and design. It influences perception but doesn‘t fully control it.

So what‘s going on in people‘s minds when they form perceptions about brands? Turns out there‘s a whole host of cognitive biases and psychological principles at play.

For one, our brains are wired to use mental shortcuts called heuristics to make split second judgements. We instantly categorize brands based on surface traits. Is the logo color blue? The brand must be trustworthy. Does the font look childish? The product is probably low quality.

We‘re also strongly motivated by emotion more than reason. Research shows that people primarily use emotions rather than factual information to evaluate brands. Positive emotions like joy, surprise, and connection get linked to the brand over time.

Additionally, we tend to notice stimuli that confirm our preexisting beliefs (confirmation bias) and ascribe human-like personality traits to brands (anthropomorphism). Once an initial brand perception is formed, it can be incredibly sticky.

All of this is to say – brand perception is a complex beast. But make no mistake, it‘s a beast you need to tackle head on.

Why Brand Perception Matters: Data & Impact

Still not sure prioritizing brand perception is worth your time? Let the data speak for itself.

A study by Bain & Company found that 80% of executives believed they delivered a superior customer experience. But when customers were asked, only 8% agreed. Yikes. That perception gap has real consequences.

On the flip side, a strong brand perception translates into quantifiable business benefits. Did you know…

• 59% of shoppers prefer to buy new products from brands they trust (Nielsen)
• 65% of a company‘s business comes from existing customers (Gartner)
• 43% of customers spend more money on brands they‘re loyal to (Fundera)
• 77% of consumers buy from brands who share their values (Havas)

When your brand perception is positive, customers are more likely to choose you first, stick with you longer, spend more with you over time, and evangelize you to their networks.

And the reverse is also true. Negative brand perceptions can be catastrophic:

• 50% of customers will switch to a competitor after one bad experience (Zendesk)
• 63% of consumers have stopped buying from a company due to poor customer service (Microsoft)
• A one star decrease in Yelp rating can lead to a 5-9% reduction in revenue (Harvard Business School)

Bottom line, brand perception has very real dollars and cents implications. It‘s an investment with clear ROI. Not convinced yet? Let‘s look at how to actually measure it.

How to Measure Brand Perception

Luckily there‘s no shortage of tools and techniques for gauging your brand perception. Here are some of the most powerful methods.

Surveys

Surveys are one of the most direct ways to capture people‘s perceptions of your brand. By asking customers targeted questions, you can surface insights on your brand image and performance relative to competitors.

One popular survey framework is Net Promoter Score (NPS). NPS measures the percentage of customers rating their likelihood to recommend your brand to a friend or colleague as a 9 or 10 (promoters) minus the percentage rating this at 6 or below (detractors).

To get the most mileage from perception surveys, ask questions like:

• When you think of [brand], what‘s the first word that comes to mind?
• How would you describe [brand] to a friend?
• What‘s one thing [brand] could do better?
• How well does [brand] deliver on its promise of [x]?
• How does [brand] compare to [competitor] on [attribute]?

Social Listening

There‘s a massive focus group happening 24/7 – and it‘s called the internet. Social listening tools allow you to monitor mentions, comments, and conversations about your brand across channels.

Look out for metrics like:

• Sentiment analysis: The ratio of positive to negative mentions of your brand, which can be an indicator of overall emotional perception.

• Share of voice: How many mentions your brand receives compared to your total competitive set. Higher share of voice can signal stronger brand awareness and perception.

• Top association keywords: The most frequently used words and phrases appearing next to your brand name. These give you a read on the specific traits people associate with you.

• Earned vs. owned mentions: Compares mentions of your brand in earned media (press coverage, reviews etc.) versus your own channels. Earned media holds high perception sway.

The key with social listening is to track metrics over time, rather than as a snapshot. Map how your brand perception evolves and responds to different campaigns and events.

Brand Audits

A brand audit is an exercise to measure how your brand is performing compared to competitors. It typically involves:

• Surveying customers on aided and unaided awareness of your brand and competitors
• Benchmarking your brand identity and assets against industry leaders
• Assessing your brand‘s visibility and sentiment in earned and owned channels
• Analyzing aggregate review and rating data

By mapping your brand against competitors on key perception attributes, you can identify areas you‘re winning and those that need work.

Customer Data

Your internal customer data is a treasure trove of perception intel. By analyzing how customers behave, you can infer their beliefs about your brand.

Some telling metrics include:

• Repeat purchase rate: The % of customers who buy from you more than once. Higher rate = more loyal customers who perceive strong value.

• Customer lifetime value (CLV or LTV): The total worth of a customer over their lifespan with your brand. Customers with positive perceptions will keep coming back, boosting their CLV.

• Cost per acquisition (CPA): How much you spend to acquire each new customer. Strong brand perceptions make it easier and cheaper to attract customers.

• Referral rate: The % of customers who refer you to others. Referrals are the ultimate signal of brand approval and trust.

The most effective brand perception measurement strategies combine all of these techniques. By triangulating between what customers say (surveys), what they discuss (social listening), how you compare (brand audits), and how they behave (customer data), you can paint a holistic picture.

Brand Perception Examples

Need some inspiration? These brands are perception powerhouses.

Apple

Apple practically wrote the brand perception playbook. The company has built an iconic lifestyle megabrand with unrivaled loyalty. How? By keeping the focus relentlessly on the customer experience.

Apple‘s products seamlessly integrate with each other, building a perception of effortless ease. Its stores and customer service are best in class, with Geniuses ready to help at every turn. Even the packaging is designed to evoke a ritual of unboxing. Every touchpoint is unmistakably on brand.

Nike

Nike‘s brand perception is rooted in the power of sport to unite and inspire. Everything the company does – from its norm-shattering ad campaigns to its athlete sponsorships – is meant to align the brand with the values and ethos of athletes everywhere.

Take the famous Colin Kaepernick ad. By standing with Kaepernick‘s protest and showcasing his perseverance, Nike positioned itself as a progressive brand willing to lend its platform to a greater social cause. The campaign spurred record engagement and cemented Nike as a cultural icon.

Dove

Twenty years ago, Dove decided to take a stand against unrealistic, digitally distorted beauty standards. Its "Campaign for Real Beauty" struck a chord by featuring real, diverse, unairbrushed women in a category dominated by photoshopped perfection.

Since then, Dove has continued to push the envelope on redefining beauty. Its campaigns and programs aim to boost self-esteem and challenge stereotypes. In doing so, Dove has built a perception of authenticity and empowerment that transcends soap.

Airbnb

Airbnb didn‘t just disrupt the travel industry – it redefined the meaning of home. By positioning itself as a gateway to unique, immersive experiences and a global community of belonging, Airbnb has cultivated a brand perception that‘s more about connection than transactions.

To reinforce this feeling of "oneness", Airbnb frequently spotlights real traveler and host stories. It also leans into its mission of creating a world where anyone can belong anywhere in all of its content and design. The result is an brand that‘s more akin to a lifestyle movement.

Tips to Improve Brand Perception

Shaping brand perceptions for the better is both an art and a science. While there‘s no secret formula, these proven tactics can help.

1. Craft a compelling brand story. Give customers a reason to believe in your brand beyond your product attributes. Root your brand in a higher purpose and set of values that people can emotionally connect to.

2. Develop memorable brand assets. Your logo, colors, packaging, mascot, jingle – these are all opportunities to create mental associations. Make sure they‘re distinctive, consistently used, and aligned with your desired traits.

3. Personalize customer interactions. Nothing makes a customer feel valued (and positively perceive your brand) like one-to-one attention. Use customer data to tailor content, offers, and experiences at the individual level.

4. Be transparent and accountable. In the age of radical transparency, brand perceptions can be made or broken by how you handle bad news. Own up to mistakes quickly, communicate openly, and make things right.

5. Share user-generated content. Customers are 2.4x more likely to view user-generated content as authentic compared to content created by brands (Stackla). Amplify positive customer stories and experiences at scale.

6. Give back to society. 72% of consumers say they feel it is more important than ever that the companies they buy from reflect their values (5WPR). Attach your brand to relevant causes through philanthropic initiatives.

7. Measure, rinse, repeat. Brand perception is dynamic and constantly evolving. Invest in always-on listening and measurement so you can course correct in real time.

Conclusion

At its core, brand perception is about the emotional connection between your customers and your brand. It‘s the heart and soul behind why people ultimately choose you and stay with you.

As a business, your north star should be to cultivate brand perceptions that are authentic, memorable, and meaningful to your customers‘ lives. Easy? Hardly. Worth it? No doubt.

Because when you get brand perception right, magical things happen. Customers turn into die-hard advocates. Advocates bring their networks along for the ride. Competitors get left in the dust. Entire categories get redefined on your terms.

So if there‘s one thing to take away, let it be this: How customers perceive your brand is a strong indicator of your business success – now and in the future. You can‘t afford not to care about it.

It‘s time to step up and take control of your brand perception destiny. Your customers are waiting.