Part 3: Brand Metrics

Brands are the entire organization as seen through the eyes of stakeholders. Stakeholders comprise employees, customers, value chain partners, shareholders, community groups, and even the market and society at large. In this regard, a brand embodies a much broader and multidimensional definition, including products, services, reputation, experiences, partners, employees, and even more. This may strike many as overly expansive, giving brands greater credibility and influence than they historically had. But the twenty-first century is clearly not the same as the twentieth century, and the now seemingly quaint and neatly contained business definitions are inadequate to describe today’s hyperdynamic business world defined by rapidly advancing digital tools, social media, and a complete flipping of the locus of control from companies to customers. As a result, companies in almost every industry must take their branding efforts more seriously than ever before, because of the additional value conveyed by a brand. In sheer value-creation terms, even if the offering is identical to a lesser-known competitor, a well-known brand can command a higher price. With the growing complexity of markets and the expansion of product choices, brands play an increasingly important role. Brands are a form of trust between customers and companies, between the market and organizations, and between society and the institutions that structure and define our conduct. Today’s marketing strategies involve developing brand experiences that go far beyond a product or price. A brand experience describes the multifaceted effort by companies to connect to customers with entertainment, lifestyle, communication, and relationship development. Each of these components is seen as part of the customer’s overall use of, and attachment to, products and services.

Nike’s Niketown stores, Apple stores, Emirates pre/during/postflight experience, Alibaba’s Annual Singles Day, Singapore’s Changi Airport, and Bangchak’s retail petrol stations in Thailand are a microcosm of the examples of organizations that have focused on customer experience as a driver of meaningful and valuable reputation differentiation. Each shapes the customer’s perception and strengthens their relationship with the brand. For marketers, branding has evolved from a simple effort of developing a logo and slogan to a multidimensional experience designed to engage with communities of people all over the world. In business, brands are strategic assets, and companies must shift their attention from selling ordinary products to creating extraordinary experiences that inspire emotional value for customers. When brand experiences are delivered thoughtfully and well, the by-product is improved financial gain.

Brand measures, particularly brand equity, help companies understand the complexity in measuring brands and brand performance. Even with the measures within, business professionals must recognize that brands are not easily measured, nor is there a universal standard for brand valuation. It is naïve to assume brands can be distilled down to a few perfectly precise measures. Brands are complex strategic assets comprised of tangible and intangible inputs. The metrics discussed in this section are: