While a brand is often described as an intangible asset, sophisticated businesses have clear and reliable measures that help them track and forecast the economic potential of two important trends – brand loyalty and brand strength.
Loyalty translates into buying behaviors that repeat many times over a customer’s lifetime, while strength grades in-market competitiveness the brand has over rivals. These measures have a symbiotic relationship with a brand’s value and each in turn feeds the bottom line as any brand that comes out ahead in “what you get” vs. “what you spend” will be perceived by customers as being more valuable and that value has a positive financial consequence. Companies that enjoy the better ratios can demand higher prices—and since they simultaneously deliver a more valued experience—they spend less money having to advertise. They enjoy significant growth from word of mouth, which in turn reduces their acquisition costs.
So what does any of this have to do with HR? The answer is simple. Employee actions and attitudes significantly influence the brand value ratio that both finance and marketing monitor. HR is uniquely positioned to help them improve the brand’s economic contribution through a solidly designed and executed employee recognition program, like the ones Madison develops. These programs are key to helping employees focus and engage on the value building behaviors that make the brand stand out in the marketplace.