The value of branding in multifamily can feel intrinsic—and intangible. But if you could determine the ROI of your branding, you’d see just how valuable the existence of, the quality of, and the consistency of brand is for a multifamily community.
But how can you measure the way people feel? What numbers can you apply to “they really get me, and I’m telling all my friends”? Well, take branding vs. marketing. Yes, marketing is so much easier to measure your ROI. You spend a certain amount on ads, and then you’re able to see how many of your leases signed stemmed from those ads. Clear returns. Branding just isn’t as clear. But it’s just as valuable, if not more.
Let’s walk through the value of branding and how to determine your ROI for branding by recognizing the components that create the value of your apartment or multifamily brand.
Brand Value for Multifamily
For multifamily properties, brand value is the value placed on the relationship you’ve built with your residents, employees, partners, and prospects. Your consistent branding helps underscore subconscious recognition and trust. A strong brand can attract (we’re worth it) and retain (we’re still worth it) the right residents.
Basically: When your branding is well developed, well received, AND consistent, your prospects are more likely to accept your pricing (a willingness to pay a premium for a home that best resonates with their values) and your residents more likely to renew their lease year over year– because they see the value.
Components of Brand Value
But what makes up brand value for apartments? Generally four things:
- Brand Awareness
- Brand Loyalty
- Perceived Quality
- Brand Association
For fun, let’s pretend that Brand Value must = 4. And to have that point amount, you must achieve each of these components for brand value:
BRAND AWARENESS
Is your community being spoken of and referenced on social and around town? If you have brand awareness in your market, that’s a point.
BRAND LOYALTY
If you have residents renewing lease after lease and telling their friends, that’s brand loyalty. Having higher retention rates and getting referrals is an excellent sign of brand loyalty. Point for you.
PERCEIVED QUALITY
When surveyed, do you residents perceive the amenities and quality of features to be fair according to your prices? If yes, that’s another point.
BRAND ASSOCIATION
Like word association, but not quite. If brand awareness is word-of-mouth, brand association is what they’re saying. What do your residents and prospects think of when they hear your brand name? Do they have a split-second, subconscious positive reaction? That’s a good brand association. POINT!
Measuring Brand Value in Multifamily
Now, we measured that, but there’s a lot more to it than a pass/fail grade (point or no point). It comes down to actually measuring the quality and quantity of each of these aspects.
METRICS
Qualitative metrics will help you determine if your brand is perceived through customer satisfaction. This can be determined through resident feedback, general social media sentiment (good comments vs. bad ones) and reviews on Google, on facebook, and anywhere else you’re collecting reviews.
Quantitative metrics will help you see what impact your brand value is having on your bottom line. It’s a little closer to seeing how your overall brand is performing in “the real world”. Looking at occupancy rates, renewal rates, rental rate increases, and lead conversion rates can help you see whether your brand is getting it done.
BRAND EQUITY MODELS
There were two brand equity models we looked at to get a little inspo for this post: Keller’s Brand Equity Model and Aaker’s Brand Equity Model.
KELLER MODEL
The Keller model is a pyramid that’s based on customers. By basing your brand equity on residents, you’ll be closer to knowing what they want and need, possibly before they ever engage. Plus, each piece of the pyramid is built one on the other. At the foundation: brand identity. Then brand meaning, brand response, and brand resonance. Each of these are based more on emotions and feelings, so the best way to determine your standing is through feedback, reviews, and surveys. When you’ve built the “top” of the pyramid, you want to stay there by continuing a positive relationship with your residents—so they can keep feeling good about staying with your apartment community.
AAKER MODEL
Your brand strategy if you use the Aaker brand equity model is more about recognition, at the subconscious level. By being able to differentiate your offer and set your value provided apart from your competition, you have better brand equity. Your residents will have brand awareness, brand association, and become brand loyal. Which is a great strategy for nurturing residents that renew. As far as measurement goes, you can measure just about anything. Look at your year-over-year results and compare where your customers are, and how they’ve grown. One of the best ways is asking “Would you recommend us to family or friends?” Just using that question along with a comment box can give you vital insight that’s both measurable and actionable.
MEASURING BRANDING ROI
But again, how can all of this be measured? You must think in terms of linking your brand value to how your community is performing financially. It’s quality that rolls into quantity. If you’re seeing:
- Increasing occupancy rates thanks to differentiation from your comps through strategic branding
- Ability to charge higher rental rates thanks to a higher perceived brand value
- Reduced marketing costs thanks to strong brand loyalty, resulting in renewals, and word-of-mouth/referrals
Plus, using analytics and KPIs to see how your brand is performing, you might see a positive performance align with events or campaigns you put together. Consistently keep an eye on how your brand is doing regularly. For example, both brand recognition and brand loyalty can each contribute a 2% increase in yearly revenue, according to Tudor Consulting.
Enhancing Brand Value
If you’re wondering how on earth your apartment community is going to get there, start at the beginning.
Ensure you have a viable brand identity. And then you can take it from there.
SMART AND STRATEGIC BRAND DEVELOPMENT
When you start strong with the right brand elements, your brand will be solid as a rock. You’ll have the guidebook to decisions and know which direction to go. This includes your logo, visual identity, and brand voice. Every bit of your brand guidelines should be informed by research and strategy after you’ve determined your target resident.
CONSISTENT BRANDING
When you’ve got your brand guidelines all set up, it will be a lot easier to keep your branding consistent. When you’re consistent, that leads to recognition and trust. Every touchpoint should be consistent: website, social media, email marketing, and printed marketing materials. (This includes your brand voice, too.)
RESIDENT EXPERIENCE
Check in with your residents. Go above and beyond. PLUS: When your brand is valued by the employees, they’re more likely to go above and beyond for your residents as well. That equates to better customer service, i.e. an improved resident experience. Be open to feedback and learn from (and fix!) the negatives.
COMMUNITY INVOLVEMENT
Are you getting the pulse on how the broader neighborhood views your brand? If they don’t know who you are, that might be a problem. Start getting involved in the community. Do fundraisers and partner with local shops to increase visibility and improve your overall brand appearance. Whatever you’re doing, make sure it’s authentic.
Solid brand development and implementation strategies are more valuable today in multifamily than we’ve ever seen historically—and while it can be difficult to measure, outside industries who have long invested in their brands prove without a doubt that brand absolutely proves a worthwhile ROI.