Know-How Exchange : Branding

Considering the current state of most financial sevices companies and all the money they have lost for their investors, I think their current brand equity is probably valued at 0 or negative in some cases :))

Having said that, trying to measure an intangible for any organisation is very tough to do. If the cmpany is to be sold, then the 'ptrmium' paid for the good will (which equates to the same thing) is a constantly negotiable thing over thd above the 'book value'.

One of the best ways to get a true read on value is an NPS survey.

NPS is a very simple concept but acurately projects the potential of a company to grow or otherwise based on custmer loyalty and the willingness of customers to 'promote' the product or service on behalf of the company.

If you can get a clear NPS score, then I think you will be well on the way to outting a value on the brand premium.

Try to avoid anecdotal information such as customer testimonials that are 'featured' by the company because they only show the good ones of course :)

Get real, hard data from them.
Also try to get data from their customer service provider (inhoues or otherwise) regarding complaint rates, satisfaction surveys and quality of handling of issues. This will also clue you in to how the customers are responding to the rpoduct or service.

At the end of the day, always remember that regardles of what price someone comes up with - anything IS ONLY WORTH WHAT SOME IS WILLING TO PAY FOR IT.

It is easy to say that the brand equity is valued at 0.25 per share by wall street analysts but if there is no buyer at that place then it is useless.

If there is a hard cash offer at 0.12 per share, and that offer is accepted by the seller, then that is what it is worth today.

Hope some of this was helpful.

Good luck,

Matthew