What Is More Valuable To Your Company: Brand Or Customer?

The answer to this question depends on an important strategic decision. If you answered "brand" your company has been dedicated to focus all their attention on increasing the value of their brands and the Business Logo Design. You must allocate financial resources to protect and capitalize on their brand equity. Even, you must hire consulting services that promise to restore your "brand architecture," and portfolio of brands that covers the specific functions of each and the nature of their relationships with their markets. Unfortunately, this answer is incorrect.

The answer can only be a customer. Salaries, benefits, equipment and even budgets for advertising and public relations come from customers. Without customers, there can be no profit, without profit there is no business. Instead, brands can have little bearing on the success or profitability of companies. A marketing objective that has become an obsession for companies is to get the positioning of their brands. But we rarely stop to consider how positioning affects the profitability of our organization. Recall that the brands that have disappeared from the market have not done for lack of a brand strategy, but for lack of customers. In this sense, it is time to evaluate the traditional wisdom that has made in terms two companies are joining as the "brand equity" and "brand architecture". It is time to change the language of marketing in the companies means to concentrate on structuring the "Customer Equity" and “client’s architecture."

Customer equity is to determine who are the most valuable customers of our company? This is done through finding the Customer Lifetime Value (CLV). This tool is invaluable for estimating 20% of customers generate 80% of profits, and to identify the 15% of customers that, on average, are not profitable. Much of the success of promotional campaigns that are applied today is determined by the number of leads generated, regardless of what the profitability of these new customers and if the value of the investment in promotion justifies the value of customer acquisition potential. Ask yourself why you want to acquire an unprofitable customer? Assess the strategic objectives, segmentation strategies and differentiation around a corporate growth strategy, in order to attract potential customers who share the same characteristics of their profitable customers.

Maximizing profitability is based on brand penetration. Ask yourself how much your client invests in a product category, what is the market share, what is the initial cost of initial acquisition of potential customers?? And what is the marketing offer that will support the penetration of the product in the market?

The marketing objectives are defined around maximizing the promotional campaign, profitability, market knowledge and results. Maximizing the results depends on the constant and infinite measurement in the marketing function. Using surveys and audits, financial analysis, and presentation of operational reports and other, companies must measure growth, retention and Lifecycle of each customer. Customers never think or care about the brand architecture of companies. The concern lies with the marketing manager, as it has the task of measuring how architecture affects brand profitability.

About The Author:

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