The ABC's of Branding: Value

4/10/2019

Blog

Measuring the overall value of a brand is key in determining the future success of a company. Value measures success, and success is only achieved through attaining a balance between profit and customer loyalty. Brand value can be described as the overall financial assets a brand carries, essentially referring to it's net worth. The term Brand Value measures the monetary worth, longevity and financial assets of your brand. While you may have heard of brand equity as well, brand value and brand equity are not exactly the same thing.

Brand Equity is a term that defines a brand's overall value. Building brand equity is based on shaping consumer perceptions according to their prior interactions with a brand. Thus, brand equity is something that is built up overtime with consistent high quality interactions. Factors contributing to brand equity include visibility, customer loyalty and company reputation. The overall equity rating of a brand can be measured as either positive or negative. If a brand continues to impress, excel and eventually exceed customer expectations, a brand has a positive brand equity. Likewise, if a brand rarely lives up to their word, continually miss and under-deliver to customers, they will have a negative brand equity.

<img alt="scale measuring brand value and brand equity">
Image by mohamed Hassan from Pixabay

When measuring the overall value behind a brand, it's important to consider both the financial and customer-perceived value, as the value and success of a brand can not be determined without the other. Solely succeeding monetarily and financially are not a good indicator of success if your customers are unhappy. In the same way, if your customers are satisfied but your company is not accruing any real profit in the long run, your brand lacks financial success. This often becomes the case if customers like your brand, but not enough to pay the requested price for your product or offering.


For more information on building brand value, see our blogs on Brand Quality and Brand Experience.

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