Knowing the value of your residential assisted living business brand will help you in four major areas of building a successful business.
Investors want to know that their money and resources are going into a project that has the potential to grow their contribution.
Knowing your brand’s value helps keep you from entering into a less than favorable agreement.
Four Benefits of Knowing the Worth of Your Assisted Living Brand
- Attract the right investors and helps better ensure you will enter equitable contracts with them
- Attract the right clients at the right price point
- Understand how to market your brand to your business’s strengths
- Understand how you compare with competition
Building value into your brand is crucial.
From the logo to the systems of everyday procedures, you can build value into your brand a thousand different ways, from the seemingly inconsequential to the large, obvious details.
It is important to the success of your assisted living business that you learn how to calculate the value of your brand.
How difficult is it to determine what your brand is worth?
Branding ideas are intangible; therefore, it can be difficult to explain the value. However, there are various methods to calculate brand valuation.
COMPONENTS TO INCLUDE IN ASSISTED LIVING BRAND VALUATION
Brands include any aspect that clients and customers associate with your business. These items include, but are not limited to:
- Brand name
- Visual assets (logo, brand colors, etc.)
- Unique marketing strategy
- Digital assets or licenses
- Customer loyalty
If you want to know the value of your business, it is imperative to use the right tools to measure the worth of your brand.
Methods for evaluating the worth of your brand depend on your business, industry, and situation.
THE IMPORTANCE OF BRAND VALUATION
Residential Assisted Living brand equity is an asset that provides a sustainable competitive advantage for your business.
Coincidently, brand valuation is not an objective concept. Many businesses are known to manipulate the value of their brand to make the value appear to work in their favor.
Your brand will mean different things to different people.
Therefore, it is invaluable to objectively identify the valuation appropriately without assumptions.
Brand valuation can be achieved using 1 of 3 strategies.
- Cost-Based Brand Valuation: This method values a brand using the costs that have been incurred to build the brand since its beginning. Items you would include when evaluating costs are historical advertising, promotion expenditures, cost of campaign creation, licensing and registration costs, and cost of any trademarks.
- Market-Based Brand Valuation: It uses one or more points of comparison between your business and similar brands that have been sold.
- Income Approach to Brand Valuation: To calculate the brand value, the income approach uses future net earnings that can be attributed directly to the brand to determine its current value.
YOUR BRAND IS VALUABLE AND POWERFUL
Understanding how to optimize the value of your brand can produce long-term gains. It is a powerful strategy that extends far beyond the products and services you offer.
If you were to sell your brand, it should have monetary value.
Suppose another company wanted to buy your brand or merge with your existing business, your products, services, logo, and other aspects of your brand should be factored into the deal.
This is market-based brand value, and it is important to understand the difference between brand value and brand equity.
- Brand Value
Brand value is the financial gauge of your brand’s worth, but it is largely influenced by the equity of your brand.
- Brand Equity
Brand equity is based on positive customer perceptions, preferences, and influence. Brand equity is all about brand recognition, positive association, quality of service, and customer loyalty.
A residential assisted living brand can also have value without having equity – this happens when a business invests money into the brand prior to marketing it to the public. Compared with brand value, brand equity is an unformulated concept of behavior rather than financial figures that is far more difficult to measure.
MEASURING YOUR BRAND VALUE AND EQUITY
There are countless perspectives on what makes a brand valuable – and the best brands demand deep thinking for success.
Building brands can be complex and confusing without a clear strategy in mind, but measuring the worth of those brands is far simpler.
You can solicit quotes to find out how much it would cost to develop a brand equivalent to your current one.
There’s a 4-step schematic developed in 2003 by marketing experts Keller and Lehmann that describes how brand value can be built.
- Marketing program investment
- Customer mindset
- Market performance
- Shareholder value
This method can provide a useful framework for building and quantifying your brand value.
Three Tips to Building Brand Equity
- Marketing and advertising
- Ambassadorship and sponsoring
- Customer experience
Quality customer experiences are the ultimate way to build brand equity. People are not typically concerned about paying higher costs if they feel as though the value is visible and positive.
Most importantly, always remember that your brand is worth money.
Know your worth by:
- Assessing the costs involved to establish or replace your brand.
- Assessing the economic worth of your brand based on its place in the market.
Figuring out the cost of establishing or replacing your brand requires multiple steps.
1. Evaluate The Cost of Creating Your Brand Identity:
- Name development and registration
- Logo development and trademarking
- Slogan development and trademarking
- Domain name registration and establishment of web presence
- Development of brand-identifying elements such as a unique and widely accepted color scheme and other elements that contribute to the identity of your brand
2. The Cost to Achieve Your Current Level of Market Awareness:
- Digital presence
- Publicity, brand message and promise, and your brand benefits and distinctions
3. The Cost to Attract and Retain Your Current Clientele:
- Lead generation
- Customer acquisition
- Relationship development
- Implementation of loyalty programs for customer retention such as sales, repeat purchases incentives, and positive reviews, ratings, comments, and word-of-mouth.
So why is this all important?
When you have an objective understanding of your brand’s value, you can then make better decisions about your pricing structure. You will also have a better gauge on the need/value of improvements to your residential assisted living home and the services that you provide.
Additionally, you will also be better able to make informed decisions on improving your marketing strategy in your local area. For example, if you know that your brand isn’t as well known as your competitors, then you have a starting point to guide your marketing efforts because you will more fully know what your business needs to bring to the table in order to more effectively compete within your local market.
This is simply a cursory list of why your brand’s value matters and what knowing it can do for you. When you spend the time and effort to find these answers, you will undoubtedly uncover a world of possibilities to explore to build your business. But it all starts with doing the work to objectively get to know your brand. What you do with that information from there is up to you.
BUILDING QUALITY ASSISTED LIVING HOMES ACROSS THE COUNTRY
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