Selecting the Right Method for Your Brand


Measuring the value of your brand is essential to understand its worth and how it contributes to your company’s overall success. There are several methods that can be used to accurately measure the value of your brand, such as cost-based valuation, market-based valuation, income-based valuation, revenue premium valuation, customer-based valuation and net pro.

Cost-Based Valuation
This method calculates brand value based on how much it costs to build the brand. So, you’d add up all the expenses incurred in brand-building from the very beginning.

Market-Based Valuation
This method looks estimates the value of your brand based on the current market climate. You can easily assess market-based valuation by looking at the sale price of similar brands.

Income-Based Valuation
This method looks at the income generated by your brand currently. In other words, what money is your brand bringing in for the company.

Revenue Premium Valuation
In some ways, this method is a more specific form of income-based valuation. It compares your brand to non-branded alternatives to decide how much people will pay for a recognized brand.

Customer-Based Valuation
This method involves assessing the number of current customers, predicting numbers of future customers, and assigning lifetime values to each.

Net Promoter Score (NPS) Valuation
“Net promoter score,” in essence, is a measure of how well your brand does at inspiring organic, word-of-mouth promotion. You can calculate it by asking customers how likely they are to recommend your brand to someone they know.

All of these methods have pros and cons. This is natural, given the intangible and subjective nature of a brand and its value. Regardless of what method you choose, the exercise of measuring your brand’s value will clearly illustrate its monetary impact on your company. Use it to inform your goal-setting and brand strategy going forward.

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