Have you ever stopped to check the brand of an item before you purchase it? Chances are you have, and you might not even know it because it’s become so ingrained in our consumer psyches. Indeed, we use brand identity with matters of consumer choice all the time to help us assess many different aspects of products including:
- the value
- product quality
- the service we can expect
- the cost
- the logo and design elements
So many brands have become household names in today’s world that we look to them to help us decide what to buy. This means the brands themselves have become valuable assets separate from the products and services emblazoned with them. Indeed, now it is possible to prise apart a product and brand, and take that brand and use it to sell other products and services.
Of course, acquiring a brand, especially a very successful one comes at a price, and that is exactly where the term brand value comes in. Find out more about brand value, how it relates to the identity of your brand, brand equity, and how to increase it below.
What is brand value?
If you choose to use your brand (its identity, logo, and name) to sell new products or services, the brand value is the amount of money that it would be worth. The more that you increase name value, or brand value, the more someone is willing to pay for it, and therefore the more it’s worth.
Brand Value & Brand Identity
The identity of your brand plays an important role in your brand value. This is because if you can create a robust brand identity, you will help increase the popularity and receptiveness of your brand and thus a greater brand value. In essence, it helps your brand to become a value asset in addition to the other assets your business may hold such as stock, property, technology, etc.
A strong brand identity is made up of many parts including visual imaging, colors, words, brand voice, tone and more. A successful brand identity will communicate who you are to existing customers as well as future customers at every stage of the buying process.
One example of a strong brand identity is Apple. The Apple logo with the bite taken out of it has surely contributed to its $2 billion-plus brand value.
Another example is that in the 1990s, the Burt’s Bees brand was born. It started with a simple beeswax lip balm that became wildly successful. Now in 2023, Burt’s Bees is the brand for cosmetics, toiletries, body care, pet care, baby clothing, and much, much more. The beloved bee icon is no longer just a symbol for beeswax lip balm, but a symbol for comfort, care, natural & organic remedies, style, beauty, life, nurture, gentleness, and so much more.
Brand Value vs. Brand Equity
Now we know a bit about how brand value and brand identity are linked so it’s time to examine brand value versus brand equity. At first glance, it may seem as if the two terms focus on the same thing. However, this is not the case as brand equity is all about measuring how favorably customers view your brand. While brand value is the worth of the brand itself, separated from the rest of the assets in your business.
Brand equity, while tricky to measure, is concerned with things like the purpose of the brand and its reputation. It relates to how customers form a bond with a brand which is usually based on how well it matches their values. In this way, brand equity can and does have an impact on brand value. This is because by building brand equity you will increase the efficacy of your brand, reinforce its identity, and add value to it.
How Can We Measure Brand Value?
The good news is that brand value is easier to measure than brand equity! Indeed, all you need to do is to make some inquiries concerning what other companies would be prepared to pay to purchase the rights to use your brand. You’ll want to ask several at least because the next step is to add all those purchase prices together, and then divide them by the number of inquiries you included. This will then provide you with an approximate average for your brand’s market value.
Practical Tips On How To Increase Brand Value
Now that you know more about what brand value is and how to understand and measure the concept, let’s look at some practical ways you can increase it, in line with the theory above.
Creating a positive customer experience
You already know that your brand’s equity boosts brand value. But did you realize that a great way to boost how favorably a customer sees your brand is to make sure they have the most positive experience interacting with your brand every time?
Indeed, by offering a positive experience you will help build positive associations between your customers and your brand. The good news is there is plenty you can do to boost your customer experience at every touch point including allowing them to provide feedback on their experiences as this will be a valuable resource showing you where you can improve.
This can even be your unfair advantage in the marketplace. As an example, when an order is shipped to your customer, add a handwritten thank you note in the box, or maybe even a little gift.
Or, as another example, if a customer has unfortunately had an issue after delivery, you need to ensure that they receive the best customer support of their entire life, and that any issue they have will be resolved as soon as possible.
The above examples require very little effort spent in regard to increasing the customer experience.
Increase your brand marketing and advertising
You likely won’t be surprised to discover that one of the most important steps in realizing brand value is to invest in marketing for your brand. Indeed, not only will good marketing help you sell products and help you get the edge over your competitors, but it can help you increase your brand value as well.
Indeed, if you want to see customer loyalty, as well as ensure customers see themselves as aligned with your brand’s values, you will need to be clever with the first step of your digital marketing research, understanding exactly what pain points your customers have, so they truly resonate with your messaging. Of course, one of the best ways to do this is through designing marketing campaigns that specifically appeal to your target audience, as it will help you to build your brand perception. This will mean that your efforts spent on digital marketing through the likes of social media can not only provide more value to your customers, but can begin to build trust with them and therefore lead to more sales.
Collaborate with an ambassador
Another important factor of brand building that can help you increase the value of your brand is working with an ambassador. Collaborating with a group or individual who is already famous is a great way of getting more recognition and awareness for your brand. Make the effort to try to choose an ambassador that matches your brand purpose and values as well, as this will help consumers connect more with your brand.
Collaborating with an ambassador (or influencer) who is specific to your niche can be an incredible catalyst to catapult you into the public consciousness. When you incorporate this into your branding strategy, it can allow you to get on the same level as your competition, by making the marketplace much more aware of the quality products that you can provide to them.
In conclusion, to boost brand value, consider creating a positive customer experience at every interaction with your brand, including its identity, logo, name, and everything else that is related to the brand. This is particularly important if the brand is to be valued, and sold, at some stage down the line. The higher someone is willing to pay for it, the higher the brand value. Building a strong brand identity, incorporating visual imagery, colors, words, and tone, can enhance brand popularity and subsequently increase brand value.
Creating a positive brand experience can build strong associations and customer loyalty. Additionally, invest in marketing and advertising to increase brand visibility and customer trust. Collaborating with ambassadors or influencers that align with your brand’s purpose and values can also raise brand awareness and value.