What is Brand Value?
Brand valuation is the process of estimating the total financial value of a brand. A conflict of interest exists if those who value a brand were also involved in its creation. Brand valuation emerged in the 1980s Early firms involved in providing brand valuations included the British branding agency, Interbrand, led by John Murphy and Michael Birkin, which is credited with leading the concept's development.
Brand value is based on the financial amount the brand is worth as stated on a balance sheet. Brand value not only creates more revenue but also affects the market. When consumers find value in a brand and are loyal, it can discourage other companies from entering the market. This protects the market share for existing companies.
Why is brand value important?
A brand value is a desirable principle or quality that embodies a brand. For business owners, identifying their brands’ values can help to streamline decision-making and provide direction in everything that they do.
1) Brand values give you an edge over big companies. Oftentimes, small businesses feel they can’t compete with large companies especially when it comes to pricing but they can offer a better customer experience by lining up their brand values with the values of their customers.
2) Brand values help distinguish your brand from your competition. It will help you to stand out from the crowd and help you to attract similar-minded clients who appreciate your values.
3) Helps you to drive your small business with passion. The most successful small businesses are propelled by business owners who are truly passionate about what they do and to be truly passionate, you as a business owner must believe in your brand’s values on a very primal level.
Essential Elements of a Brand’s Value
Effectively Communicate Your Brand Value
Below are the ways you can communicate your brand value and make your mark:
Unique value proposition
A unique value proposition tells your prospective customers why they should do business with you and not your competition.
It is a short but compelling message that summarizes the benefit of your product or service in superiority over an alternative.
You should think in terms of how best you can boost your voice, your style of communication, and your tone. Its uniqueness is your recognition. This should be the same as the voice of your brand.
Your brand voice could be mild, authoritative, passive, fun, depending on your understanding of your audience. The goal is for your customers to think of you immediately when they engage with your branding.
Being customer-centric is about more than just offering a good product or staffing a contact center. It becomes a cultural way of life for the company and impacts everything from employee engagement to customer experience. This promotes positive experiences, enhances customer loyalty, and enables overall satisfaction.
Company culture is the representation of the attitudes and behaviours of a company with its employees. It is defined by the shared values which are evident in their interactions and decisions as an organization. Well, thought-out company culture is a crucial factor in any attempt to communicate your brand value.
Brand consistency is the practice of expressing the company's mission, vision, and core value in uniformity. A consistent brand value reinforces the position of a brand in the marketplace, attracting and maintaining business relationships, trust, and loyalty. This results in superior marketplace performance, an increase in the frequency of purchasing, and higher brand relevance.
Digital channels' inclusion for brands has made it easy to communicate brand value directly to customers. With direct reach to users, you can improve the quality of your service, engage with prospects, and make decisions faster. Campaign strategies that use relevant and compelling information or promotional contents and which are tailored to fit specific audiences are more effective.
A testimonial improves a brand's credibility. It is a measure of satisfaction from a customer and with consistent value delivery, it guarantees not just their continued patronage but a high chance of referrals.
Having your customers become a part of your sales team is an inexpensive but highly effective form of marketing. Leveraging this strategy can be achieved by the promotion of review ratings, reward programs, referral bonuses, etc.