Brand value refers to the financial worth of your brand. It is your brand’s estimated worth on a balance sheet. A brand is an intangible asset of a company and brand value helps in understanding a brand’s standing in the market in comparison with its competitors. It helps to understand how much the company’s cash inflow is derived from the brand. Linking brand value to a brand’s financial standing can give deeper insights into the brand, its market positioning and helps to make calculated and informed business decisions.
The best of wrong investment is; the now cash-out mindset, and if the now frustrates, then you desist from further investing in your brand, especially without been informed of how its’ métamorphose in the market, to either you win or not.
While you may perceived your brand not to be doing well after many efforts, certain metrics may need be considered before you wear the ”I quit cap.”
- Brand Awareness – Brand value is determined by the degree of awareness the consumers have about the brand. Have your audience ever heard of your brand’s existence? Are they at least vaguely familiar with the brand? These are important questions that determine a brand’s value. The more the customers are aware of the brand and can easily distinguish it from its competitor, the better. Ideally, marketers strive to create a top-of-the-mind brand recall that makes the brand synonymous with the product category like the brands Coca-Cola or Bigi Cola, both have become so synonymous with their products that most people thought Coke is a Cola, and especially that one is more satisfying to the other.
- Brand Perception – Brand perception refers to how the customers perceive a particular brand. The customer’s perception of the brand is a very important factor that has a massive impact on the overall brand value. Brand perception itself depends on various factors such as the customer’s view or opinion about your product quality, branding, customer support, quality and the degree of customer engagement. These components influence a customer’s perception of the brand which indirectly impacts the brand value.
- Brand Association – The attributes a customer associates with a particular brand is referred to as brand association. With time, customers start ascribing qualities to a particular brand, it could be durability, affordability or other attributes. For example, Apple is often associated with innovation, Rolls Royce is aspirational whereas Target is often associated with affordability. These attributes not only distinguish the brand from its competitor but also help to significantly improve brand value.
- Brand Loyalty – Among the most important elements of brand value is brand loyalty. Brand loyalty refers to a customer’s positive association with a brand for a prolonged period of time and the customer’s inclination to choose the brand repeatedly over its competitor. The main goal of marketers and brands around the world is to build a base of loyal customers that not only repeatedly purchase from the brand but also positively influence their network. A loyal base of customers acts as brand representatives and is undeterred by the growing competition or even minor price inflations. They can prove to be a great asset to the brand, significantly increasing brand value and setting the brand apart from its competitors.
When next you’re looking to invest on your brand, the above will be a great deal of focus for robust RoI.