Contrary to conventional wisdom, there is a key set of fundamental metrics — which can be actively managed — linking the health of a brand to revenue and consumer commitment.

Executives like to talk about strong brands as platforms for sustained growth. In the management literature, the link between brand equity and shareholder value is well accepted. So, why is the responsibility for brand-building not more actively managed in the executive suite?

In our work across sectors, we see companies often failing to “walk the talk” — unable to grasp the link between brand health and revenue commit­ment from customers. They treat brand-building superficially, believing that what matters is making brute-force impressions through large advertising campaigns.

Yet brand health is based on more than image and, through a set of key interrelated measures, can be linked to business performance.

How does the concept of brand health compare to the notion of brand equity?

Brand equity is linked to shareholder value. It is an intangible, long-term measure of a company, which is of little use to executives making investment trade-offs that affect top-line growth. By contrast, brand health is linked to current and future value with consumers and differences in com­petitive position. It is tangible and vital to managing brands and business performance on a forward-looking basis. (more…)