By Nick Wreden
"ProfitBrand does an outstanding activity in exhibiting how businesses can achieve through monitoring person shoppers' profitability, and never easily basing their innovations on combination measures reminiscent of revenues and marketplace share." -- Philip Kotler, Kellogg tuition of administration
Read Online or Download ProfitBrand: How to Increase the Profitability, Accountability and Sustainability of Brands PDF
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Extra info for ProfitBrand: How to Increase the Profitability, Accountability and Sustainability of Brands
In the history of the world, only two things have never happened. No one has washed a rental car. And no one has bought anything based on brand equity. Customers buy on value, service, price or other issues, but never purchase based on the relative brand equity of two offerings. Why should companies pay attention to an issue that customers ignore? As a result, brand equity has as much value to those interested in profitability and accountability as leeches and bleeding have to those focused on medical efficacy.
Even organizational structures must change. Sales and marketing departments are universally dedicated to selling products or, for the most advanced companies, acquiring customers. What department is focused on ensuring the customer stays with the company? Often, it is not customer service, which is generally structured around dealing with customer complaints. New skills are also required. Branding professionals must become knowledgeable about financial and supply chain issues. They must demonstrate a new willingness to be measured on results, just as other parts of the organization are.
Why should companies pay attention to an issue that customers ignore? As a result, brand equity has as much value to those interested in profitability and accountability as leeches and bleeding have to those focused on medical efficacy. But there is one brand value calculation that the CEO and CFO can embrace – customer equity. CUSTOMER EQUITY: IMPORTANCE OF LIFETIME CUSTOMER VALUE Do brands have value? Absolutely. But attempting to measure this value through brand equity provides little benefit and distracts a company away from the task of retaining profitable customers.