Consumers are willing to pay a premium price for products/services from a company with high brand value (a.k.a brand equity).
So what’s your brand worth to your customers; do you have any value? In today’s post, we will cover:
- What’s included in a brand
- How to measure your brand’s value
- Free Value Quiz
What’s included in a brand:
To calculate a brands value or equity, we must understand what’s included in a brand. There are two parts to a brand: tangible and intangible. Together, all these elements form your brand’s value.
Intangible + tangible = your brand
Intangible elements of your brand can’t be touched physically but influence your brand significantly.
- Your promise to clients
- Perceived Value
- Quality of services/products
- Service and offering
Tangible elements to your brand are the physical elements that customers and see touch.
- Business Cards
How to measure your brand’s value:
There are many different methods to equate brand value. However, most methods are extremely complex, and all methods are subjective.
That’s right, there’s not a single agreed upon method to calculating brand value. The truth is, value means something different for everyone and calculating this is very difficult.
For our purposes today, these complex valuation methods aren’t beneficial to a small business interested in improving their value. Instead, we encourage you to focus on your local influence and strength.
Free Value Quiz
Take a moment to answer the simple questions below to assess your brand’s value.
Step 1: Select one response from each question
When you increase your pricing what happens to your demand (number of customers)?
- I’m not sure (0 points)
- Decrease (1 point)
- Remain the same (2 point)
- Increase (3 point)
How much extra are customers will to pay for your products/services compared to your competition or local market rate?
- None, I charge much less than my competitors (0 point)
- None, I charge the same as my competitors (1 point)
- Slightly above, I charge slightly more than my competitors(2 point)
- Much higher, I charge double or more than my competitors(3 point)
What is your current market awareness?
- I am NOT well known in my local market (0 point)
- I am known in my local market (1 point)
- I am well known in my local market and regionally (2 point)
- I am very well known in my local market and nation or world wide (3 point)
Step 2: Add up your totals
Add up your points from above and read the corresponding category of your total score.
0-3 Total Points:
It’s time to strengthen your brand! If you want your business to bring in profitability then you need to grow your brand. Take a quick moment to checkout our Brand Bootcamp Course or checkout out Tips to Increase Your brand’s Value.
4-7 Total Points:
There’s some room for improvement. You brand may have some local strength but you need to kick it up a notch. If you want to grow your brand, checkout our Brand Bootcamp Course or checkout out Tips to Increase Your brand’s Value.
8+ Total Points:
Great job! You seem to have a strong influence in your local and large markets. Keep up the great work! Focus on how you can further grow your business with our Tips to Increase Your brand’s Value.
Step 3: Strategies a plan
Brand strategy isn’t just for corporate guys at the top; small businesses can build powerful brands too.
If you feel lost and frustrated in your business then it’s time to strategies a plan. You can do this for 1 week or less with our online self-guided course, Brand Bootcamp.