In order to calculate ‘Brand Value’, one ought to understand what a ‘Brand’ is.
A brand is not a “thing”. It’s not a product or a service. Rather it’s a perception, an expectancy. Most people think in terms of something “intangible”.
When you think of “Apple”, “Coke”, “Amazon”, what do you think of. Logo is probably not what you think of. Rather, you may be thinking of … quality, happiness, and quick delivery.
So the question you ought to ask yourself is … when people think of “your business”, what do they think of?
Calculating Small Business Brand Value
It’s a simple formula.
Brand Value equals to the value you place on people’s expectancy about your brand multiplied by the number of people thinking it.
Here’s an example:
Say in a town like Middleton, MA, we have Richardson’s Farm. Many believe it to be best ice cream on North Shore. Our family loves their ice cream, their animals and mini golf.
So, what is Richardson’s brand value?
Their Quality of Ice Cream X No. of People Who Think that.
If their ice cream was average (5) and a lot of people (100,000) thought the same, their brand value would be 500,000 points.
However, we know their ice cream quality is more like 9, and a lot more than 100,000 people know that. So, to recalculate their brand value … 9 X say, 250,000 people think Richardson’s provide high quality ice cream = 2,250,000 points.
That’s a massive difference. I hope this simple exercise gets you thinking.
Want to increase your brand value? Find out what people think about your brand. Find out approximately how many people think that. Then do the calculation.
Are you happy with the answers? If yes, congratulations. You’re doing great. If not, either change people’s perception about your brand, or figure out how to find more people who think the same about your brand.
In either case, better, smarter, or faster customer service coupled with some good social media campaigns will aid.