In contemporary consumer culture, brands are omnipresent. We cannot escape their profound influence and call to interact with them.
We have complex mosaic theories explaining the power of brands for the companies that own them, the consumers who purchase and consume them, and the mark they leave on society. Ultimately, brand value is a reflection of the impact that the brand has on its various stakeholders and this perceived value increases over an extended period of time.
Quantifying the value of a brand asset is difficult, which is why financial regulators in most economies do not allow brand assets to be carried on a company’s balance sheet unless purchased in an open-market transaction. That means the balance sheet is missing its most valuable asset: its brand.
Why is measuring brand value so difficult?
As intangible assets from which profits stream over time, brands and their value are difficult for many within an organisation to understand. The late Steve Jobs, considered one of the most formidable marketing experts of all time, once said, “Your brand is the single most important investment you can make in your businessâ€.Â
Investments in a brand today may take years to bear fruit. It is akin to planting a tree, knowing that future generations, rather than yourself, will enjoy its shade. Investments made decades ago can continue to provide benefits well into the future.
Due to the difficulties of measuring the return on investment (ROI) of branding, organisational leadership would often encourage companies to cut brand investments in support of sales promotions or performance marketing-based customer acquisition campaigns that increase short-term sales at the expense of building long-term brand value.
However, what leadership often misses is that intentionally investing in creating a solid brand ensures future sustainability and success.
Some key benefits of having substantial brand equity are:
• Customer Loyalty: Consumers are more inclined to demonstrate stronger loyalty because of trust and the ability to identify with the brand.
• Competitive differentiation: A well-defined brand differentiates itself from competitors.
• Adaptability to market conditions: Brands with substantial equity are resilient and can withstand economic downturns.
• Corporate Social Responsibility: Ability to adequately allocate resources to uplift communities in which business operates.
• Intellectual property: A brand is a valuable intangible asset that can be collateralised in financial transactions such as franchise agreements.
Bank Windhoek has made significant strides in building a formidable brand over the years. Regular assessments are conducted to gauge market perception using the Determinants of Service Quality (DSQ) methodology, which measures customer satisfaction in the financial sector.
This technique focuses on understanding customer experience, satisfaction from both relationship and channel perspectives, and loyalty, with Net Promoter Score (NPS) and Brand Affinity metrics being key performance indicators. Bank Windhoek aims to achieve a high NPS by benchmarking against global industry standards and continually enhancing customer experience. In 2023, the Bank achieved a record NPS score of 45%, an excellent industry standard.
We also consistently score above 85% in Brand Affinity, reflecting the emotional connection and resonance we build with our audiences. These metrics and scores demonstrate our customer-centric approach and our clients’ trust in our brand. Relationships are our key brand differentiator in the Namibian market, and we continue to develop and offer banking solutions that meet the ever-changing needs of our population. We believe that journeying with our customers during every stage of their lives builds trust and instils loyalty.
Brand investment is a strategic imperative that helps drive long-term success and growth. Bank Windhoek believes in the growth and investment of its brand in the broader context of Namibia and her people and is excited to share its new brand campaign, underpinned by unique stories that are woven together to make us one. Come journey with us.
* Jacquiline Pack is Bank Windhoek’s Executive Officer of Marketing and Corporate Communication
