Although most corporate leaders accept this evidence as settled science, we still encounter skeptics. In particular, the accounting profession still does not believe that internally grown intangibles such as brand should be valued on the balance sheet beyond the “goodwill” estimate for an acquired company. This is in spite of the fact that these intangibles represent a significant portion of total enterprise value.
In the face of such skepticism, we believe now is the time to take action. Use this body of empirical data to convince your CEO that brand can create value:
- Strong B2B brands can deliver 20% price premium over weaker brands in the same category
- As much as 20% of all B2B purchase decisions are driven by brand
- Customer loyalty is 50% higher for B2B companies with a strong brand
- Strong brands can also save talent costs with up to 43% cost savings per hire
- Brands where employees believe the vision and plan see 7% higher stock returns per year
- The right brand architecture decision can deliver double the returns when compared to the alternatives
- The right branding decision in a merger can result in a shift in subsequent stock performance of over 30%
We have used this information to help our own clients make decisions about how to brand their organization following a merger, how to rationalize their complex brand portfolios, and how to better position their brands during market disruption.
Ready to learn more? Contact us to schedule a time to talk.