Maximising brand value

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Key points

Two measures of brand value

The value of a brand can be enjoyed in two ways:

1. On-going sales & profits

Profit from income from loyal customers because:

• you protect your current level of sales to those customers
• you get additional sales for other products/services to those customers
• you reduce your "costs to serve" because both sides are trying to make the process as cost-effective as possible
• you get recommended by loyal customers, and so attract new customers
• loyal customers value you more and are therefore prepared to pay a premium for your products/services

2. Capital growth

Brand valuation ultimately works on the basis of a potential buyer asking "how much more profit can I get for my products and services sold under this brand than under any brand I might build?".

Brand value is in the mind

Either way, the value of a brand ultimately lies more in the minds of customers of the brand, and of potential acquirers of it, than in any intrinsic value.

Therefore, the way to maximise brand value is to:

• develop a compelling brand proposition
• have a large segment of loyal customers who value the brand significantly above its competitors
• legally protect your ownership of the brand
• deliver the brand consistently through rigorous customer relationship management processes
• maximise awareness of, and familiarity with, the brand

Luckily, you are just seconds away from some very smart brand marketing solutions. Click here!

For further information, please contact enquiries@mudvalley.co.uk

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