Direct Correlation Between Brand and Company Market Value
Earlier this week, John Moore at Brand Autopsy published a post called The Financial Impact of a Strong Brand Reputation. It’s a great post about a study conducted by Communications Consulting Worldwide (CCW) that shows the correlation between your company and brand reputations and your market value, growth, stock price, etc.
CCW works with clients to define, measure and manage the impact of their company and brand reputations to determine the overall value of those reputations. This study used a number of CCW’s unique tools to analyze the reputations of various companies to determine how the perception of a company and brand reputation can impact the bottomline.
The chart below shows the potential impact for several companies.
CCW has certainly built a strong case for companies to invest resources into fully developing their company and brand images. A case study on the CCW website states, “Reputation has value. Communications build reputation. At a leading technology company, external communications contribute 27% of total market value and cause a 5.7% change in stock price.” Those are significant statistics.
What do you think? Is it time for companies to start investing more heavily into building their company and brand reputations? Will those efforts correlate into profits? I think so.
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POSTED IN: Brand Perception
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