What Is Brand Value And How to Measure It?

After all the efforts you’ve put in to grow your business, do you know what your brand’s worth is? If you’re stumped, fret not! This article will walk you through everything you need to know, including tried-and-tested strategies for building brand value.

The higher you rank on the list, the more impressive you look to customers. Not only does this boost your marketability, but it enhances your reliability and trustworthiness, too.

Let’s break down the importance.

A business with strong brand value can make a huge difference in today’s competitive landscape. It can shape trends, attract investors, influence customer perception, and have social and environmental impact.

It’s not surprising why industry giants invest in branding, sales, and marketing activities to develop and maintain brand reputation. Take Amazon, Apple, and Google—three of the most valued brands in the world, worth between USD135 billion and USD245 billion.

Data from Forbes shows that they allocate not less than a billion dollars on their company advertising alone.

Consequently, your business can become a brand authority in your industry where customers are less likely to second-guess their purchases and may even depend on you for reliable information. They can also turn into brand advocates and increase word-of-mouth referrals. Moreover, a high brand value encourages businesses to create innovative products that people will surely love.

How Brand Value Impacts Marketing Strategies

Picture this: a customer has been recommended a pair of running shoes due to its impressive design, functionality, and affordability. But, the customer stumbles upon an Instagram ad from Adidas showcasing their latest running shoe collection.

As a result, the customer decides to buy from Adidas despite its higher-priced products. Why? The answer lies in Adidas’ reputation as one of the leading sports shoe brands in the market.

The above example highlights a high brand value can make your marketing strategies more efficient and amplify the results your business aims for.

So, how do these terms differ from each other?

Brand value pertains to the financial assessment of a business or its market value. An excellent example of a high value brand is Coca-Cola, which is worth a staggering $97.88 billion in 2022. It maintains a strong presence across various marketing channels, like digital platforms, radio, and TV advertisements.

And it’s so effective that the brand is estimated to spend about $4 billion each year on branding and advertising!

On the other hand, brand equity is the value of a brand's intangible assets. It encompasses the desirability, emotions, perception, and loyalty that it evokes from customers.

Brand equity also factors in how much customers know about the brand, customer acquisition rate, market share, and social media mentions, among others, compared to its competitors.

Coca-Cola ranks as one of the top brands alongside Nestle in the nonalcoholic beverage industry, boasting over 500 sub-brands in different countries.

Overall, a consistent and high financial value and equity result in a positive brand reputation, nurturing lasting relationships with customers and ensuring that you stand out from competitors.

1. Brand Awareness

Brand awareness is vital to trust-building with customers and increasing the value of your brand. By maintaining a consistent presence across multiple online and offline marketing channels, you can increase your chances of your target market remembering and recognizing you. Ultimately, it leads to a larger market share and a competitive advantage.

How to measure brand awareness:

• Quantifying branded search volume or branded keywords. Periodically analyze how often people search keywords associated with your brand to gauge your brand popularity.
• Tracking marketing and sales leads. Monitoring the progress of your leads or pipeline is a good indicator of how quickly you can convert customers.
• Web traffic analytics and social media analytics. Gain insights on patterns and unique opportunities based on customer behaviors online.

2. Brand Perception

If you’re curious to know if customers resonate with your brand, begin by looking at your brand perception. It is what customers think of your brand, encapsulating their thoughts and feelings. By actively engaging with and listening to your customers you can see if your brand identity and key messages align with your customers.

How to measure brand perception:

• Social media listening. Track conversations and mentions about your brand on social media platform.
• Customer reviews and feedback. Take advantage of platforms with feedback and rating features to gauge cutomer sentiment. You can use these to identify the pros and cons of your brand that you need to optimize, too.
• Employee feedback. Your employees are often the first in-person touchpoint of your customers. They have a deeper awareness about what your regular customers think of you, making them a great source for valuable insights that help determine the value of your brand.

3. Brand Consistency

Consistency is vital in the world of branding. When customers see cohesive branding elements, like logos, colors, font, messaging, etc., they are more likely to recognize your brand. For instance, Pilsbury’s brand mascot—the Pilsbury Doughboy—garnered an 87% recognition factor. Finally, ensuring a consistent customer experience can help reinforce brand awareness, foster familiarity, and grow brand loyalty.

How to measure brand consistency:

• Take inventory of your brand assets. Cross-check how consistent your brand assets across all channels are in retrospect to your brand guidelines.
• Ask your customers. Create surveys that zero in on which brand elements are most recognizable to your respondents.
• Check your competitors. Look for similarities or differences in visual branding, messaging, features, and pricing, to name a few, between you and your competitors.

4. Brand Loyalty

A tight-knit community of loyal buyers ensures repeat purchases, which creates a steady revenue stream. It also encourages recommendations, which attracts new customers. And finally, having customer loyalty means buyers are willing to pay a premium for the added value they associate with the brand.

How to measure brand loyalty:

• Customer Retention Rate. It refers to the amount of customers you have kept over a certain period.
• Customer Lifetime Value. By knowing how much you have earned from long term customers, you can efficiently have a more accurate purchase estimate.
• Net Promoter Score. You can derive your score by subtracting the number of customers willing to recommend your brand from those who wouldn't. It then gives you important insight on how to enhance the brand experience.

People care about brands that make them feel valued. Achieve this and you can expect an increase, too. Here’s how.

Tip #1: Actively Engage with Your Online Audience

If you’re not interacting with your online audience, you’re missing out! Keeping an active engagement with your online audience makes them feel heard and valued. It also showcases your brand’s personality and values, encouraging customers to be more open and give feedback about your offerings.

Simply responding to comments, messages, and mentions deepens your connection with your customers. Or you can kick it up by hosting things like AMAs (Ask Me Anything), themed live chats, webinars, and interviews.

Tip #2: Optimize Your Customer Service

Want to leave a long-lasting brand impression and recurring purchase? It turns out that you can do this by going above and beyond in delivering top-notch customer service. In fact, over 60% of customers surveyed by Zippia shared that they chose to purchase from competitors due to bad customer experience.

So, how can you optimize your customer service? Start with the basics like maintaining a customer feedback system for both online and in-store customers. You can also create dedicated social media accounts to streamline complaints and have a quicker response system. Finally, training your team to spot recurring issues and gain insights enables your brand to deliver personalized interactions.

Tip #3: Leverage Community Involvement

Community involvement is more than a PR stunt. While it’s true that brands that actively participate and take a stand in social and environmental issues create a positive impression, community involvement is more than a PR stunt. It is a way to build a community of brand advocates who can drive positive change, especially among the younger audience who values a sense of belonging.

In effect, community involvement strengthens your brand reputation and brand image. Keep in mind that your brand’s community initiatives should integrate authenticity and transparency to evoke genuine responses and meaningful impact.

Let’s examine how the top three companies in the world continue to strengthen their brand value.

Amazon

$299.28 billion

Amazon has grown by offering products of all kinds at low prices and delivering them to customers in the most convenient way. For instance, the company often runs shopping events, like daily discounts, Prime Day for exclusive Prime members, seasonal sales, and themed weekly deals.

Amazon is also known for its Same-Day Delivery and One Day delivery, enticing customers to rely on the company for their shopping needs.

Apple

$297.51 billion

From a brand that has perfectly embodied its famous slogan “Think Different,” Apple has introduced us to its groundbreaking products like the iPhone, iPod, Macbook, and AirPods.

Over the years, it established the Apple Ecosystem which—some say—has grown a cult following and invited investors. A report from Statista supports this with Apple topping the list of largest companies in the world with its market capitalization valuation worth $2.47 billion.

Google

$281.38 billion

Google has become synonymous with “internet” that it has become a verb and rakes in over eight billion searches a day.

Although Google’s brand value dropped this year, the search engine still managed to rank third with over $280 billion in brand valuation.

Thanks to its ever-evolving search features, vast global reach, and commitment to innovation and technology, Google continues to dominate the market.

Take a look at 2023’s top 10 companies in the world with the highest brand value according to Statista.

A high brand value takes a long time to build, but the reward is truly worth every effort. It enhances customer perception and loyalty, expands your market reach, and optimizes your profitability. Done right, it also develops your business to become synonymous with quality and innovation.

The good news is ourbrand design experts can help you achieve that and more! Learn about what Ramotion can do for you and grow your brand.