No amount of market analysis, planning, and business rescue programs can undo the single, most detrimental impact of the Corona pandemic on businesses – revenue loss. Globally, every decision maker, from Fortune 500 CEOs to the owner of the corner café is grappling with the same issue – “If we pull through this, how will we survive something similar if it occurs in the future?”
Brand establishment and reputation is something that takes years (and decades) to build. Brand building is very resource intensive, and it’s very difficult for businesses to quantify, in Rand terms, the “equity value” embedded in their brand. Businesses have also not realised that there is underlying potential in the brand – a potential that can (and should) be leveraged to extract some tangible value from the brand. Very few marketing strategies consider brand value to create additional revenue streams and generate revenue purely from brand value (as opposed to stock, product and service sales).
The challenge of direct revenue streaming from brand value has long been the paradox of brand-value based marketing. How do you generate revenue from brand value? Revenue is seen by traditionalists purely as a function of either sale of stock and/or services or interest generated from investments. Brand value as a concept has long been accepted, but the ability to put a rand value to brand value has always been considered an enigma to marketing professionals. Brand based revenue generation was always a paradox, after all, how do you generate revenue from “nothing”?
Let’s take a step back and look at another technological innovation – water from air. There are now feasible technology processes, coupled with efficient machines that are able to extract and condense sufficient water vapour (to liquid) from the atmosphere to bottle, distribute & sell it (at competitive & market related prices), and generate profits. Yet not so long ago, we didn’t even know that water existed as vapour in the air. And even when we did discover the existence of water vapour, we never thought that we would be able to extract it in sufficient quantities, efficiently enough to make it a feasible business model.
The same can be said of extracting revenue from brand value. At first, the concept of brand value did not exist in the world of commerce. As business sciences progressed, brand value was realised as an abstract concept. In the evolution of business marketing over the last century, the concept of brand value has evolved to a point where organisations are fiercely protective over their brands and products’ images. So there is an acceptance that there is value in a brand.
The next step in that evolution is the capacity and ability to extract a tangible and measurable return from that brand value – a revenue return. Marketing experts have now developed multiple models, but to date, very few models have shown promise as being financially feasible. The concurrent evolution of the digital platform though, has included an extra ace in the deck, an ace up the sleeve that smart marketers are able to pull out and include as part of the overall brand and marketing strategy – the ace to generate a direct revenue from your brand identity. As professionals in digital marketing, let us look at your brand and give you an opportunity to see how much revenue you can generate from your brand identity alone.