Determining the value of a brand is both an art and a science. Meaning, it's important to look at tangible and intangible metrics. While calculating value from a financial standpoint is the end goal, it's important to consider the perception of your brand and its strength relative to others to provide a holistic perspective. You can inform your process with data gathered through quantitative and qualitative methods or if budgets are tight, there's always the back of the envelope method.
Below are a few tips on what to consider when going through the process:
1. Financial Assessment - To establish an estimate of value, you can use several different financial methods. The Balance Small Business provides perspective on three different approaches - cost, market and income (see link).
2. Brand Perception - Also consider the role brand plays in purchase decisions within your category. As we shared in our webinar, brand impacts behavior in every industry so it's important to understand its influence. Consult Brand Valuation reports such as Interbrand's Best Global Brands or BrandZ from Kantar Millward Brown for perspective on your category.
3. Internal and External Indicators - Evaluating your branding efforts on elements such as Consistency and Differentiation is an important exercise to determine your brand strengths and opportunities, especially vs. competitors and companies that invest in brand. See link for more detail on Interbrand's Brand Strength Factors.
The Brand Evaluator is a joint venture of independent brand builders – Michelle Thompson, BrandSpark Design LLC and Christine Sech, Brave Oak Brand Building LLC. We work with emerging businesses to help them clearly and meaningfully convey their organization’s value through brand building strategy, design and content that drives results.