Brand value is a great way to assign worth to a company. However, this is only a small part of the equation. Learn what brand value is, how it relates to brand equity and how you can improve yours. Here’s an in-depth breakdown to get you started.
What is brand value?
Brand value is calculated in a lot of ways. At the most basic level, brand value is a measurement of financial worth a company retains. The more a business makes or is worth monetarily, the higher their brand value.
On a deeper level, brand value is a measurement of company worth in relation to competition. For example, how much more customers will pay for a service from one company over another. Sometimes this decision is based on quality, other times it’s based on memories and perception.
How is brand value different than brand equity?
Brand value and equity relate to each other but are different in a lot of ways. Brand value gives a definitive estimation of a company’s worth. Whether determined financially or through customer preferences, it shows a clearly defined difference between one company and another.
This is different from brand equity, which instead is measured in a much more abstract fashion. Brand equity defines the influence a brand has on a customer base. It should of course be pointed out that a strong brand equity can build a strong brand value. Just because the two things are different, doesn’t mean they can’t influence each other. Keep this in mind when considering brand decisions.
Why is it important?
Clearly, boosting your brand value overall boosts the worth of your company. This alone makes it important. Even though this is the most basic of reasons, it’s the most important. Once we dig a little deeper, however, we see there’s a lot more to it. Creating brand value does things for a company that aren’t always noticeable on first glance.
One of the most important things to remember about brand value is context. Here’s an example showing why context is so crucial. Let’s say your company’s new sock product brought in one million dollars in one year. Without any other context, this is a pretty good haul. However, every other sock company on the market made fifty million in one year with their new sock products. Now your production seems pretty awful. This is one of the biggest parts of brand value that can’t be understated. It helps companies understand not only how much money their brand is worth, but also it shows them how much it’s worth compared to the competition.
How to build your brand value
There are a lot of different ways to build brand value and a lot of them are subjective. However, there’s definitely a few things that stand out. One thing is to make use of technology in order to boost communication and collaboration. There’s so many new tools that allow companies to be creative and get team members working toward a single goal. This gives strong chances to boost brand value.
Another way is differentiation from other brands. This should occur not only when it comes to numbers and statistics but also creativity and presence. Keep your company logo, font and style unique to continually build up your brand value.
Remember that brand value is much more than just a financial report. It’s an overall comparison to your competitors and a perception of worth to your customers. Build around this fact to succeed.