Measuring Brand Currency, Your Most Valuable Company Asset

Peter Weedfald's book, "Green Reign Leadership"

When you boost your brand’s short and long term value, competitive dominance and market demand, you boost overall earnings. And as I like to say repeatedly, “brand is a promise.” Your brand currency needs to be shined, primped, pruned and protracted competitively each and every day. As we know, a brand’s greatest power is empowered through its products, in the face of competitive pressure and market opportunity. And under any brand umbrella is emotional capital, the flame needed to build brand infatuation.

An important part of the art of the possible in building brand muscle, empowering consumer demand is measurement. Seems measurement is so easy and forthcoming in our cloud based initiatives but still daunting outside of the internet. The tried and true brand measurement formula I have deployed for years still works according to several of my colleagues:

Brand Campaign Performance ROI = Product Revenue X Profit Margin / Cost of Advertising

This simple ROI calculation isan incremental campaign metric to be measured against previous campaigns and results. CFOs value this brand-specific formula as useful for measuring pilot marketing campaigns, A/B test splits, social campaigns, incremental brand value and product sales measurements inclusive to consumer enhanced promotional drive periods. Smart focus on brand value ROI (return on investment) takes into consideration the following:

1. Brand Equity Measurement: an intangible asset determined through the incremental value of marketing as it pertains to increased or decreased brand awareness and product purchasing to a given buying audience in any channel, place or time.

2. Brand Equity: defined as incremental cash turns accrued to branded product offerings measured above and beyond cash flows resulting from same product offering, absence of brand.

3. Brand As Income: that brand equity can be measured and ascertained through this formula as future cash flow based upon expected competitive product displacement earnings and profit earned pools related to maturing brand and product performance.

4. Brand Awareness: managing, leading and measuring customer brand funnel stages in the language of: awareness – consideration – intention – purchase.

5. Brand Shaping: marketers can only shape (market and advertise) consumer perception, drive engagements, or motivate sales by first establishing formidable and targeted market centric awareness, purpose and clarity of brand position.

6. Brand Diagnostics: it is critically important to evaluate primary brand performance and or under-performance with respect to specific marketing and advertising investments inclusive to competitive shelf pull, editorial exposure and social based programs.

7. Brand ROI: measurement is critical in the heat of driving brand awareness to evaluate customer behavior as a key articulator, course corrector and accelerator of marketing strategies. Savvy ways to discover, examine and measure brand ROI review and effective product reveal efforts:

A. Short term ROI: measured lift results especially during product launch’s, consumer drive periods and competitively launched product introductions.

B. Pre and post campaign research: to reveal brand and product metric progressions or digressions in forecast to inventory turns, price elasticity and future product forecasts.

C. Juxtaposed brand attribute metrics: versus competitors based upon market data, shelf share data reported as “A, B,C products versus your brand” and market sell-through results (from 3rd party research reporters).

D. Careful expense, asset and investment metric review: drill down into spend touch points to determine impact on conversion rates and optimization of the overall medium marketing mix.

E. Measurement: must be tied to both strategic objectives and increased performance metrics. The ultimate brand ROI viceroy delivers greater awareness, impact, influence, conversion and customer valued propositions.

CEOs and CFOs have weathered this downtrodden global economy in part by downsizing human capital, improving supply based economics, enhancing operations and reining in costs across the board.

With profits benefiting from the protection of cost reductions it is now time to raise the roof on revenues, market share and brand value. Brand value is the pylon to profit: the core product to price competitive entry lever to ensure the gain of a few more pennies per product turn, per consumer purchase instance. Sounds like a smart and easy marketing task however, it is not. Senior leadership needs to boost executive support and accord to fuel brand affinity, growth and acceleration through these 7 principles in congress with relevant investments. After all, brand truly is your most important asset. It is the primary currency of any company’s profitable future.

Peter Weedfald is President of Gen One Ventures and author of Green Reign Leadership

Peter Weedfald is President of Gen One Ventures, a sales, marketing and brand-product consulting company. He has served as SVP, Chief Marketing Officer of Circuit City, SVP of Sales and Marketing in North America for Samsung, and SVP of global marketing and EEVP, GM & Chief Marketing Officer for ViewSonic.
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  • Dave Klein

    As I am not in marketing rather in sales I will re-read this post several more times. I believe the formula and tagged points are hugely important for all our customer facing departments to adhere to and measure as one team.

  • Steven Vinton

    Wow! Will cover with my financial and marketing teams to ensure we are measuring all ad expenses plus brand evaluation with your formula. Thank you Peter!

  • Salvatore Tofano


    Thanks for sharing your detailed explanation of the progression of measuring brand currency.

    I am always fascinated by the various stages in which brand performance is measured inside the brand architecture of a company . So are you saying that all these stages are critical in assessing effective brand strengths and weaknesses? And are these the only steps in the measurement process that will detrmine brand maturity and sustainability ?

    Across many industries in consumer goods , I would assume that these are standard evolutionary stages , but then again I would think that in some industries such as entertainment , media and retail where the rapidly changing tide of technology ie Internet, mobile and social have had disruptive effects on the brand measurement . More staid industries such as insurance are less effected by technology.

    It would also be interesting to see futher analysis on the measurement of brands adding market value and shareholder value

    Thanks again.

    Best ,

    Sal Tofano

  • Gary Froman

    I found your article in my Linkedin CES Int’l group. First time I read such depth in treating brand as a financial asset. I will read your thoughts for a 3rd time to better digest for application to our brand work ahead. Thank you Peter!

  • Peter Weedfald

    Thank you Gary, please email me with additional thoughts, questions and your further thoughts… as we both know, very important subject…