LatanaLatana

KPIs

We regularly update and add features to the Latana dashboard, and we collect all learning materials in this organized database.

KPIs

Brand preference

Brand preference KPI measures what share of an audience considers a brand as their first choice, above all others presented to them. This is generally a deeper-level funnel KPI, that works in perfect tandem with Brand consideration, to deepen your understanding of consumer purchase intent and brand loyalty. Insight into this KPI is mostly relevant for your target audience, seeing as it is so strongly tied to purchase decision behaviour.

  • It is less relevant when looked at with a general population vision as preference will then be skewed by those who are not even considering your wider category.

Brands who have first established higher levels of Brand Awareness and Brand Understanding will inevitably gain more relevant insights from this KPI. Generally, we advise that brands gain an awareness level of 35%+ amongst their target audience before beginning to measure and track Brand preference levels. This will also help to achieve more reliable results with lower margins of error.

Brand preference KPI is strongly linked to usage or purchase behaviour and to loyalty of a brand. It is almost certain that the consumer in this case has already had experience with the brand (and other competitors) and has decided their experience warrants repeated usage and continued commitment to purchase behaviour.

How do we ask it?

Brand Preference KPI question is asked alongside competitor names and logos in a single-select list format. Question text of Brand preference KPI is "Which of these brands would you prefer?". The list of options is limited to 6 brands in total and additional options "None of these" and "I don't know" that un-check other option selection on the current question screen.

  • The limit of 6 brands is set based on tests performed by Latana research team that identified that this is the optimal number of brands that allows for enough focus on respondents' side.

  • Keep in mind, that every different combination of brands in the list is perceived differently by respondents. If the list has all brands with very similar brand logos and names, it can be more difficult to parse and differentiate the visual information and can end up in slightly lower KPI values.

What do you see in the app?

Brand preference is delivered as brand-specific KPI where the range of predictions varies from 0 to 100% for every brand. The highest percentage displayed among the five indicates the top ranking among selected competitors.

Latana's recommendations

Driver associations, when assessed alongside Brand preference, can provide a crucial narrative of your opportunities and gaps towards being preferred over other options for your target audience. If you are missing the mark with your audience on key priorities that sway decision motivations, and furthermore are winning/losing out against competitors here, it can strongly explain why preference is either high or low.

Brand consideration, when assessed alongside Brand preference, can provide a crucial narrative of the decision making process amongst your target audience. These two KPIs highly complement each other, in that they provide understanding of your purchase or usage strength.

To note, industries vary in the combination of these KPIs due to differing purchase decision motives. Therefore it is complementary to understand the competition level within the industry alongside the consideration and preference of a brand. Especially for those industries that do not foster multi-brand usage.