Drugi jezik na kojem je dostupan ovaj članak: Bosnian
What is the exact worth of your brand?
If someone was to approach you on the street and ask you to name one of the world’s most valuable brands, what would your answer be? Even if you have never thought about this or read an article on the subject, you would probably name one of the big three. Who would not say Apple or Microsoft? Or Coca Cola?
And of course, you would be right. All three are regularly featured on the Best Brands list. 28 out of the 100 brands featured on this list belong to the ICT or car industry and each and every one has its brand value stipulated. The brand value of those brands is measured in billions of dollars.
The formula used to calculate brand value is complex, and several versions exist depending on who is doing the math (e.g. Forbes or Interbrand). Still, the different formulas usually generate very similar results. In a nutshell, these formulas combine some tangible and some less conspicuous factors, ranging from clear-cut financial indicators, to the way in which the brand in question influences consumer choice, and the strength of the brand, with which it justifies its price and thus influences the company revenue.
How does this manifest itself on an actual brand?
Let’s take Apple as an example and use the common facts that we all are acquainted with.
Apple has been at the top of the Best Brand list for years. Every single year this brand introduces new gadgets and new models of existing ones on the market, none of which is affordable by the majority of people. Still, a large number of people will go out of their way and spend large amounts of money just to be able to possess the latest Apple product.
When it comes to computers, half of the people you ask will say they prefer Apple to PC. The other half will wholeheartedly profess their preference of PCs. Only a small portion of people are versed enough in this field to make an educated choice based on empirical reasons. Here emotions play an important role – the design, prestige and image projected by owning an Apple device. The PC user will no doubt frown on this, because in their opinion prestige, design and image are terms associated with Apple devices. Right? Still, even they are not immune to the subtle ways in which brands affect our choices. Moreover, all that is true of Apple is true of Microsoft, which is regularly featured on the Best Brands list as well.
A more interesting fact about Apple is how they were able to create an artificial need on the market, only to satisfy it with one of their devices. Another statement proving its strength is the way the music industry (market) changed years ago with the introduction of a single Apple product. Apple is now attempting the same with an app. As portrayed by these examples, you will see that Apple rarely follows trends. Rather, it creates them.
And herein lies the real strength (or value) of this brand.
Brand value in industries which are not (that) brand dependent
All of the above applies to companies that make up the service industry which isn’t (at first glance at least) so much brand oriented. It’s not? Oh, yes it is.
The Brand here also influences consumer choice, justifies the price of a specific service and in the end influences the financial indicators. Still, only a handful of companies in the service industry know the exact value of their brand. Or rather, only the truly big ones know it.
Research into the value of your brand is crucial, for it will influence the positioning of your company and the development of your strategy, as well as the framework to measure the company’s performance. In this case, the financial indicator is not the sole indicator of value and you will not be needing fancy formulas.
Here, like nowhere else, your deeds speak for you and your brand is built through your relationship with your clients. If you are Apple, you can take risks and “alienate” some of your users with a new product because in six months’ time you will have the opportunity to win them back with another product (whether you succeed is another thing). But services within a specific industry are not infinite, and impaired relationships are not easily remedied. Therefore, you need to work on your branding and be aware of its value.
What does brand value mean to your clients?
Ask yourselves, what does your brand promise to potential clients? Why should they come to you, instead of to another company? Is your price competitive? What additional services do you offer your clients to maintain their loyalty?
Understanding what your brand signifies to your clients is a prerequisite of client retention and consequently sustaining your brand on the market. Price and brand value are the only components that can be used to measure yourself against your competitors within the same industry. But after a while, price itself will no longer be something you should sacrifice, because it could jeopardize the value of your brand. What to do then?
What you can and should do is simple:
- Always try to anticipate your client’s needs – do not wait for them to signal that your service no longer works for them. Build a strong connection with them and do not forget to listen; often your clients are signaling to you … you just need to recognize this.
- Be in your client’s “vision range” – clients should be aware of the value you bring them at all times.
- Offer service upgrades so that your client can perceive how you are making their life easier, better and more productive.
- Keep an eye on your competition – this is self-explanatory.
- Try out new business ideas – keep up with trends and don’t be afraid to take a step forward.
- Enhance “user experience” – your client needs to be sure at all times that you will be there when they need you; that you will act promptly and efficiently. From time to time do something that is not within your business scope in order to separate yourself from the competition. Reward your client’s loyalty – in an acceptable manner of course.
- Never forget the human element – the human face of the company is your strongest tool. While newsletters and email are perfectly OK in the business world, most clients still prefer a more personal connection. Be creative and results will follow. Various events are an excellent way to build a relationship with your client. Call them (or even go and see them) even if they do not need you at that moment.
When you have done all this, you will see that your brand’s name will bring in new clients, retain the existing ones, and if they even think of questioning the price of your service they will be aware of the promise that comes along with this … and all of this will be mirrored in your business performance indicators. And that’s the answer to the question posed in the subheading.