What Significance Does Brand Equity Have For Companies Part Two
Brand Valuation and Financial Liquidity
Brand valuation is also gaining increasing relevance for liquidity and financial planning. If the new valuation agreements are implemented in the planned form, the determination of credit terms will increasingly be based on the individual creditworthiness of borrowers.
In the future, the company-specific rating will depend on material assets such as production facilities and intangible assets such as brand values.
Even today, for example, improving Moody's rating by one rating step can lead to a significant reduction in borrowing costs in the double-digit million range.
In addition, the financial community will increasingly reward a communicated brand value story in the future, as the existing brand capital contributes to reducing the information deficit between book value and market capitalization.
This development is accelerated by the current sustainability discussion, which is aimed at sustainable corporate success and the corresponding vital factors.
We can look forward to the development of original brand values. Suppose there is still a ban on activation so far because an objective assessment has been rejected so far.
In that case, there are first indications that this regulation could in the future be available, or at least be the focus of a discussion.
Last but not least, it is essential to measure how successfully you have implemented your branding measures. In online branding, various parameters indicate success.
It can be measured by the number of visitors to brand websites, the number of fans and followers in the social media networks, and customers' loyalty via the Net Promoter Score.
Quite apart from the classic measuring instruments such as the conventional survey on brand awareness. And of course, one thing, in particular, is the development of sales.