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How do you calculate the value of a brand? This is the question that keeps CEOs up at night, or, at least, it should. No one argues the importance of measuring the effectiveness of your digital marketing activities, but brand value is so often overlooked in favor of email marketing, content development and other core marketing activities. CEOs may forget that brand equity is a critical part of growing any healthtech business and, therefore, neglect to improve their brand image

It can be a challenge for business owners and marketers to understand the value a brand brings to a company. A brand can be seen as intangible and nearly impossible to define, let alone measure its effectiveness. Before you can even begin to measure a brand’s value, you need to gain a clear understanding of the term “brand” and its meaning.

What is a Brand?

First things first, what exactly is a brand? While many people refer to a brand as a logo or slogan, it is so much more.

In the simplest of terms, a brand is what your prospects and customers think of when they hear your brand name, see your logo or view your commercial. It’s the emotions your brand name elicits and the overall public perception of your healthtech, company, products and services.

When uncovering your personal brand, you want to ask yourself these questions:

  • What is your company’s competitive advantage? Essentially, what do you do better than anyone else?
  • What are your company’s business ideals and operating principles?
  • What are your passions, motivations and interests? What drives your success?
  • What words do your prospects and customers use to describe you?
  • What is your company known for?

Answering these questions will move you one step closer towards identifying your personal brand and discovering creative ways to increase brand value. If you’re at a loss for how to monitor your brand’s effectiveness, here are some surefire ways to measure your brand’s value.

How do you Measure the Value of a Brand?

Your first impulse may be to track social media followers, email open rates and media buzz. But, believe it or not, your brand value depends on more than Facebook shares and total blog subscribers. Instead, you will want to rely on proven effective brand valuation techniques:

  • Cost-Based Brand Valuation
    Cost based brand valuation estimates the total amount invested in the creation of a brand. To determine this number, a company would have to add up all of the costs incurred since the brand’s inception. This would take into consideration any individual costs in addition to the value of all brand assets and liabilities. However, keep in mind that this accumulation of costs may not be an accurate representation of the current value of the brand. But it certainly is a helpful jumping off point.
  • Market-Based Brand Valuation
    When someone wishes to sell a property in a neighborhood, they typically look around and check the selling prices of similar houses on their street before setting a price on their own property. Market based brand valuation adopts a similar approach. In this brand valuation technique, you compare your brand to other healthtech brands in the marketplace. You would estimate your brand’s value by considering similar market transactions, such as a sale of a comparable brand and/or stock market quotations. When using this method, you would assume your brand value equals the bid, offer or transaction price for identical or reasonably similar brands.
  • Income Approach Brand Valuation
    This approach proves to be the most reliable, or at least consistent, of these three brand valuation methods. This technique is based on expectations for future net earnings. The value of the brand is determined by predictions for future cash flows over the remaining useful economic life of the brand. 

Companies frequently refer to their “brand” without realizing what it stands for or its impact on every business transaction. To ensure your healthtech company’s ongoing success, you need to gain a thorough understanding of your personal brand and make every effort to measure its value.

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