1 to $1.025 Billion: Deloitte Digital Launches BrandWorth™ and Correlates Powerful, Direct Relationship Between Brand and Revenue has been saved
1 to $1.025 Billion: Deloitte Digital Launches BrandWorth™ and Correlates Powerful, Direct Relationship Between Brand and Revenue
BrandWorth validates brand as a financial asset and changes the C-suite conversation around brand investment
NEW YORK, June 22, 2021 — Deloitte Digital has finally put a price on brand with BrandWorth™, a scoring system and new model designed for CMOs to determine the value of brand, which found that the relationship between brand score and revenue was 1 to $1.025 billion, meaning every 1% CMOs can increase their BrandWorth score can drive an incremental $1.025 billion in revenue per quarter.
Informed by this powerful insight, BrandWorth was developed as a precise, data-driven way to help CMOs measure and model brand impact over time, by audience and against their competitors; and manage brand towards top-line revenue growth across the organization. In the ongoing need to advocate for investment in brand, especially during times of economic downturn, this research and new tool for CMOs show that brand truly is a financial asset — one that can be leveraged to attract better talent, create pricing power, identify unexpected partnerships and generate sales beyond the now.
“Even though CMOs know intuitively that brand is more than just a marketing tool, I often saw them ‘brand-splaining’ — struggling to prove the business impact of good brand strategy without concrete metrics to support their case,” said Maggie Gross, head of strategy, studios at Deloitte Digital, who created BrandWorth. “Marketers have had to rely on metrics like brand ‘love’ or consideration that just wasn’t resonating with the rest of the C-suite. What they need is objective evidence that shows that investment in brand lifts every part of the company, including the bottom line, and does so with equal or greater lift than other areas of investment. BrandWorth can give them that.”
Deloitte Digital conducted an analysis of 24,000 brands across 21 industries from 2016 to 2021 to develop BrandWorth. Within the scoring system, companies that scored above average showed 200% higher customer acquisition rates and 150% higher aided awareness, demonstrating brand’s direct impact across all parts of the marketing funnel.
Four telling metrics were evaluated to determine BrandWorth scores, giving brands more precise insight into what areas of their brand needs investment. They are:
Values alignment: As corporate purpose and values increasingly took center stage over the past year, it’s no surprise that values alignment proved especially powerful in the BrandWorth research. This metric measures whether an audience feels the organization shares their values and ultimately motivates them to engage.
Experience satisfaction: This measures whether the products and experiences leave the audience wanting more. In the BrandWorth research, experience satisfaction correlated more strongly to purchase intent than NPS scores or even perceptions of quality or value by 12%, proving that experience is about much more than a logo, tagline or digital ads and requires investment in departments outside of marketing such as sales, product development, service, operations and more.
Message memorability: Memorability not only fills the prospect funnel, it moves people through the funnel repeatedly and more frequently based on whether messages are reaching the audience at the right time, capturing their attention and creating desire. Messages that consistently reflect expected and desired behaviors of a brand tend to make them easier to recall and more positively influential.
Share of culture: Traditionally called “word of mouth,” this measures the percentage of consumers surveyed who have heard or spoken about a brand positively. If a brand has a large share of culture, it reinforces to customers that by aligning with that brand, they’re participating in something bigger. Share of culture keeps a product or service on consumer shopping lists and generates a halo of goodwill that has a positive impact every time they interact with a brand.
Deloitte Digital’s BrandWorth offering can help companies across 22 industries, including retail, banking and automotive, measure and manage brand towards revenue growth. The team recently worked with a technology company to apply BrandWorth and helped them project out investment required to overtake their competitors in market penetration and successfully launch their IPO. To read the full BrandWorth study and learn more about how it can help CMOs advocate for brand investment, click here.
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