Promise Index
The Promise Index is a brand evaluation and performance tool that tracks how well brands are keeping their promises and predicts their future revenue growth. The study is carried out on the annual basis by Promise, a London based brand consultancy, supported by the London School of Economics (LSE).
The Promise Index was launched in 2004 and is now in its 6th year.The brands tracked in the index have grown from around 100 in its first year to 159 in 2009. While the core set of brands is broadly consistent, to allow comparisons year on year, new brands are added each year and others removed as companies merge, go out of business (MFI, Woolworths...). The Index measures UK consumer opinion only. The latest data and supporting commentary can be found on the company's website.
Duane Knapp and Brand Strategy Inc has an alternate "Brand Promise Test" that provides more subjective assessments of a Brand's Promise.[1]
Promise Gap
Promise Gap is the difference between the image consumers have of a particular brand and the actual experience. In other words, promise gap is a sign of how well brands live up to their reputations.
Brands with positive promise gaps exceed their customers' expectations, while those with negative promise gaps let customers down.
Two-thirds (66%) of the 150 brands surveyed for 2007 index have positive promise gaps, just 15% have ones that Promise describes as 'statistically significant'.
'This means that 85% of brands are leaving high returns on the table for those who are successful at delighting customers,' points out Promise director Clare Fuller. The best way of delighting those customers, she adds, is to redirect advertising spend toward improving the customer experience.
The strategy of under-promising and over-delivering is one that seems to be gaining ground. Two recent studies suggest it is key to delivering profitable growth, though both underline how many brands continue to disappoint. [2]
Clive Cooper from Marketing magazine puts "Living up to expectations" as one of the big issues facing marketers in 2007: "The internet has empowered the customer to find out the "real" value of a product or service. Over-promising may have once been profitable, but no longer; it may even detrimental (Promise Index 2006). Companies are quickly finding that their products and services should at the very least be commensurate with expectations, and both complaints and positive consumer activism accentuated by this effect." [3]
Promise Index and financial performance.
According to Brand Republic, the leading UK online business portal for the advertising, media, marketing and PR industries, there is a direct correlation between the promise gap and financial performance. In 2006 the average growth rate for brands with negative gaps was 2.8% in the past year, while the average growth rate for brands with positive gaps was 10.5%. [4]
Top 10 Promise Gap changes 2006-2007
| Brand | Promise Gap improvement |
|---|---|
| Orange | 2.03 |
| ING Direct | 1.94 |
| British Airways | 1.68 |
| Standard Life | 1.59 |
| Ebookers | 1.47 |
| Opodo | 1.46 |
| Alfa Romeo | 1.44 |
| Abbey | 1.41 |
| Jaguar | 1.36 |
| B&Q | 1.32. |
| Brand | Promise Gap decline |
|---|---|
| My Travel | -1.59 |
| Lexus | -1.27 |
| Intelligent Finance | -1.1 |
| Fiat | -1.09 |
| First Choice | -0.9 |
| KFC | -0.77 |
| Holiday Inn | -0.72 |
| Hyundai | -0.7 |
| Sky | -0.64 |
| McDonald’s | -0.54. |
References
Simms, Jane. "Brand advocacy: Bridging the gap", Marketing, December 12, 2007.
- Cooper, Clive. "The big issues facing us in 2007", Brand Republic, January 5, 2007.
- Simms, Jane. "Measuring a brand's image against consumer experience", Marketing, December 13, 2007.
Simms, Jane. "Customer expectations: Promises, promises", Marketing, July 13, 2005.
- Simms, Jane. "Customer expectations: Mind the gap", Marketing, July 7, 2004.