Understanding the value of your brand
For many B2B marketers, calculating the true value of a brand is not easy. It can be a significant undertaking and usually involves accounting – a subject many of us marketing professionals avoid. For small and mid-size B2B brands, the only time they may allocate the resources to calculate the value of their brand is if a merger or acquisition is in play.
Large multinational corporations like IBM, GE and Siemens are included in several brand valuation and ranking reports conducted on an annual basis. Two companies that conduct those brand valuations include Brand Finance® and Kantar Millward Brown’s BrandZ™.
When you compare the rankings among these companies and others, it's clear they have different methodologies for calculating value. For example, BrandZ™ calculates IBM’s 2017 value at $102 million, while Brand Finance® puts it at $36 million. Even so, there's a calculated monetary value, and these companies can see how they compare to other brands and how they track year over year.
Beyond the fixed dollar value these ranking services report, the financial value of a strong B2B brand can also be tied to increased profits, market share, stock performance and EBITDA (earnings before interest, taxes, depreciation and amortization). Connecting a brand’s worth to these financial metrics, though, is usually not a direct correlation.
More than financial metrics
Brands can, of course, add value beyond the financials. Strong brands serve as a shortcut for B2B buyers, helping them remove some risk from decision-making and simplifying the evaluation process. That evaluation process (aka customer journey) has changed, with buyers doing the bulk of that work on their own. They have access to a mind-numbing amount of thought leadership content, technical specs, case studies, third-party party reviews - it can be overwhelming. A strong brand can break through that monotony and clutter that buyers face today.
Good branding can also tap into emotional drivers. Every B2B audience from a chemist to a CIO is influenced by the less rational side of the brain. If a brand can evoke a perceived personal benefit, whether professional (a raise or promotion), social (co-worker approval) or emotional (boosted confidence), that is a powerful thing.
Besides the influence a strong brand can have on customers and prospects, it can also be a valuable asset in attracting and retaining employees.
Invest in your brand
The modern CMO understands the full value of a strong brand, and they are investing in building them. According to a recent survey from Duke University’s Fuqua School of Business, many are planning to increase their spending on brand building by close to 10%. The research also showed that B2B companies are growing their brand-building budgets more than their B2C counterparts. They are investing because they are seeing the payoff. Investing in brand building is increasing sales, growing/retaining customers and even attracting talent.
Don’t waste the true value of your B2B Brand. Capitalize on this important asset. To learn how you can make the most of your brand without spending a fortune along the way, check out our free webinar: Don’t waste your B2B brand.