Is it possible to quantify branding?

A conversation that comes up a lot while we’re talking to clients is how can we quantify value for money? And it’s a great question, no doubt branding is the number one differentiator for a business in the market, especially if your product or service is not unique. But if you have have even one competitor, it’s your brand that will ultimately set you apart from them. And if you think it’s price, think again!

A simple change in brand position can be enough to change the perception of an existing product and take you global. If you don’t believe me, check out this video from Oatly’s brand partners in Europe.

Once the position and design direction was set, marketing could be handled just by taking customer feedback and amplifying it. Social content and events can all be handled by your team and small partners.

The financial success of Oatly is undoubtable, but how do we measure this for smaller projects. A brand fresh, an updated website, or new packaging. What if you don’t have the budget or confidence of stakeholders to change your position in the market.

Fortunately there are a number of ways you can assess the value of a brand and brand marketing project. Ideally forecast what that value is worth to the business, then assign a budget that represents the return.

Brand expert Denise Lee Yohn sums this up

1. Financial value

How much is your company worth. Company valuations not only consider perceived worth, but also the budget you’ve spent with a branding firm.

2. Customer value

How much more than your prerebrand will customers pay for your product?

Can you survey them and ask if they feel the price is high or low for what they received, how much will that change after a new or changed brand or packaging

3. Business process

Like the oatly case above, a strong aligned brand will make your marketing so much easier

Can you quantify the money you save?

4. Culture

Are you getting more job enquiries? How much does that save on headhunters?

Company pride? Lower turnover? What’s the cost of replacing a single employee?

Conclusion

When looking at brand or design projects, first decide the framework in which you are going to use to judge the value you will receive. Then spend!!

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