What is an example of a performance indicator that reflects overall brand health?

Customer satisfaction is a key performance indicator that reflects overall brand health because it directly relates to how customers perceive and engage with your brand. High levels of customer satisfaction indicate that customers feel their needs and expectations are being met, which can lead to loyalty, repeat purchases, and positive word-of-mouth. Essentially, it serves as a barometer for the effectiveness of the brand's offerings and its reputation in the marketplace.

In contrast, while net profit is important, it is a financial measure that doesn't specifically indicate how well customers feel about the brand. Product defect rates can highlight issues with quality but do not encompass the overall sentiment and experience of customers with the brand. Lastly, raw material costs relate to production expenses and operational efficiency rather than reflecting customer perceptions or brand loyalty. Therefore, customer satisfaction is a holistic measure that encompasses various aspects of customer experience and loyalty, making it an apt indicator of brand health.