A brand is always more than just a name.
Branding involves everything that a believes in or stands for – the vision, the mission, the strategy, and the communication initiatives.
Branding is a significant, long-term investment that must produce a return on investment (ROI) like any other business activity.
Up until recently, a brand wasn’t considered an important aspect of a business. Corporate success and consumer choice were exclusively determined by product quality, not brand value. The advertising boost in the 1960s changed all that. It turned brands into household names, bringing the business to the forefront of the public consciousness.
Today, durability, sleek design, refinement, innovation, and services became proxies for desirable attributes. We are now so engrossed in the brand identity that it’s challenging to conceive of making a purchase without it.
What is brand value?
If you were to sell your brand, its value would be the amount of money you would receive. If your firm was to merge or be purchased by another company, and they wanted to sell products or services using your name, logo, and brand identification, your brand value would be the amount your consumers would pay you for that privilege.
That is the market value of your brand.
One can also think of it in terms of replacement cost. In this context, brand value refers to the amount of money it would take to create, execute, promote, and magnify a completely new brand to the same level as your current one.
The cost of employing a design agency, the time and effort spent on marketing and social media strategies, the cost of advertising, PR outreach and sponsorship, and so on may all be included in this amount.
Entrepreneurs and business owners are frequently concerned about the value of their brands.
Since the brand impacts a business’ overall financial worth, it’s no surprise that all of the company’s significant players take it very seriously.
Moreover, brand equity and value are inextricably linked. When it comes to brand equity, it all boils down to how well consumers perceive a company. It will have good equity if consumers think highly of it. Negative equity is created when customers shun and do not advocate a company.
Tips To Measure Brand Value:
It is necessary to consider various aspects while measuring a particular brand’s value. Here are some ways to measure it:
- If you notice an improvement in sales, it is a good sign of measurability. Strong sales could help enhance financial worth if people wish to buy from your brand frequently.
- If people recognize your brand right away, it’s a sign that word-of-mouth marketing is working.
- Customers perceive your brand as trustworthy and respectable which positively impacts your overall brand value.
The present brand value of your business should always be consistently increasing with time.
Here are 7 ways you can make that happen:
- Never Stop Learning
Keep enhancing your knowledge in the industry to become a thought leader, which gains credibility and commands respect for your brand. Moreover, with sufficient industry knowledge, you can take calculated risks and make more intelligent choices.
- Keep on innovating
Buyers are always looking for something new, something unique – something that nobody else is offering. If you keep offering something new, consumers will be engaged, increasing your brand value.
- Enhance your marketing skills
Marketing helps you move beyond brand knowledge and recognition to consumer understanding, alignment, and loyalty. As per the original definition, brand value chains begin with marketing which is the first stage in realizing brand value as it builds the brand perception in customers’ minds.
- Increase awareness of your brand
A customer’s knowledge about your products or services has a significant impact on your brand value as it affects your brand’s perception. A customer who is unable to resist thinking about your brand is always better than a customer who doesn’t even know about your brand’s existence.
The amount of time your brand comes up in regular conversations is a leading indicator of consumer awareness of your business.
- Strengthen your brand
Embrace the success of your local marketing efforts. One must use their contacts and yearly conventions to appreciate and recognize channel partners who add to the strength of your brand, making them ambassadors of your brand.
- Focus on giving a good customer experience
Good customer service is an effective strategy in and of itself that has a great influence on your brand value.
Customers want a happy experience from brands as much as they demand quality products and services. Research shows that customers are willing to spend more and pick brands after having a pleasant experience with them.
- Always value customer feedback
Allow plenty of opportunities for consumers and local marketers to provide feedback and show that you’re willing to listen and respond.
There’s plenty of other advice out there on building and maintaining a brand value but all the best practices and strategies show effect in time. The goal must always be to develop and assess the value and equity of your brand over a period of time, not immediately.
Other crucial aspects, like brand awareness and loyalty, can be boosted along with building a great brand value. Also, there are several other ways to measure and increase your brand value.
Always remember, it’s the brand value that makes your customers choose you over your contemporaries.
About The Go-To Guy!
The Go-To Guy! is a creative branding and marketing agency that builds memorable brand identities, activates online presence, and brings brand engagement to help companies grow online, offline, and across multiple platforms