The question “How is the true value of a brand measured?” is a particularly exciting one for a branding agency. Why? Because it forces us to think beyond the obvious. The value of a brand is not just about the numbers or the price tag. It’s about unraveling the invisible threads that connect a brand to its customers.

What does a brand actually look like if you take away the logo, the claim and the color scheme?
And: What remains if the product changes but the relationship should remain?

As a branding agency, we are often confronted with this question and like to think about it. We live in a world dominated by numbers, so it’s worth taking a look behind the scenes. We are discovering that the real value lies in the stories, the emotions and the relationships that a brand creates. A brand that builds an emotional connection has a value that goes far beyond financial metrics. That sounds familiar to us. But more on that in a moment.

The true value of a brand

Back to the true value of the brand. How exactly is this value measured?
Is it what the branding cost? Or what is generated with the brand?
Maybe that’s exactly what customers see in it?

And who actually determines when a brand is “valuable”? The market, the management or the people outside?

Costs of branding

Many people think that the value of a brand is determined by the investment in branding and marketing. But high expenditure does not automatically guarantee success. An expensive campaign may attract attention, but without an authentic message, the long-term benefits remain questionable.

The true value only becomes apparent when the brand establishes a genuine connection with the customer.
Branding that only scratches the surface without also questioning the strategy often falls short of the expectations that the large number on the invoice would suggest.

So what counts more: the production budget or the impact in people’s minds?

Earned value

Key financial figures such as turnover and profit are measurable indicators of brand value. But they do not tell the whole story. Brands such as Tesla have shown that a strong brand identity and innovative strength are crucial.

Tesla has managed to build up a loyal customer base through its vision of sustainable mobility and technological progress, which goes far beyond pure sales figures. And yes, trust is subject to fluctuations, especially with such a personal connection to the management.

But more on that in a moment.
What do all these key figures really mean if nobody trusts the brand?
What is a share price worth if your gut feeling changes?

Let’s stay with Tesla.

Elon Musk played a central role in Tesla’s rise. His vision, statements and charismatic leadership have shaped the brand and inspired many people. However, for some time now, some have turned away from the brand because they no longer trust Elon Musk. His controversial decisions and statements and his support for Trump have shaken the trust of many customers.

This shows how closely brand value can be linked to the perception of their leaders – the person behind them. Trust is fleeting, and even the strongest brands need to constantly nurture it.

Then there would be no “I got this car before Elon went crazy” stickers.

Value from the customer’s perspective

We’ve already mentioned the keyword, one of our absolute favorites: Trust.
The thing that keeps customers coming back, even when the competition is cheaper, is trust.

In a world full of brand promises, it is the component that makes the difference. Because trust is the basis for every relationship, be it between people or between people and brands.

So what makes customers identify with a brand?
When does a logo become part of your own attitude?

Ultimately, the value of a brand is a representation of what customers see in it.
Because at the end of the day, it is people who decide whether a brand is valuable or not. And that is precisely what makes this question so fascinating and complex.

Trust as a currency

Trust is the invisible currency that significantly influences the value of a brand. According to a study by PwC, 79% of consumers are willing to pay more for products from brands they trust. Trust does not happen overnight, it is the result of consistent communication, authentic interactions and the ability to deliver on promises.

A brand that builds trust creates a loyal customer base that stands by it even in times of crisis.

So what happens when trust wanes and how do you rebuild it?
Is there a branding backup for loss of reputation?

The role of emotions

Emotions are another decisive factor. After all, trust is cemented through emotions. A study by Harvard Business Review shows that brands that create an emotional connection with their customers are 52% more valuable. This connection is created by telling authentic stories and responding to the deepest needs of the target group.

How emotional can a brand actually be without losing any of its seriousness?
And which emotions really lead to long-term loyalty?

Measurement methods for brand value

So how do you measure the value of a brand?
In addition to financial indicators, there are also qualitative methods that delve deeper into customer perception and loyalty. One of these methods is brand evaluation through surveys.

Customers are asked directly about their opinion of the brand in order to gain insights into their satisfaction, loyalty and emotional connection.

Another important tool is social listening. This involves analyzing social media and online platforms to understand how the brand is perceived in the digital world. Social listening helps to identify trends and sentiments that may affect the brand and allows us to respond quickly to feedback from customers.

But here, too, the question is worth asking:
What do we actually want to measure? And what do we really want to understand?

The ROI of branding

Branding costs. Yes.
But what does it cost to have no branding?
What does it cost if nobody knows what a brand stands for? If the product is right, but the appearance is not? When the company changes but nobody notices?

The return on investment of good branding is not always immediate, but it has a long-term effect: in trust, in recognition, in loyalty, in market position.
It is reflected in the decision of potential employees to apply.
In the gut feeling of consumers to choose exactly this product, even though there are comparable alternatives.

Branding is not a nice-to-have. It is the translation of what a company is and where it wants to go.
Good branding creates clarity, reduces frictional losses and saves resources in the long term because it appeals to the right people.
And: it gives leaders something that is often underestimated: an attitude with which they can communicate both internally and externally.

So let’s also ask:
How much can good branding strengthen internal culture?
How much does a bad first feeling cost and how much does a clear image save?

Conclusion: Trust as the key to brand value

Brands that know how to gain and maintain trust are the real winners. They not only build customer loyalty, but also create an emotional connection that endures in times of crisis.

At a time when authenticity and transparency count more than ever, it is crucial that brands live these values. This is the only way they can survive in the ever-changing business world and sustainably increase their value.

Trust is the foundation on which the true value of a brand rests. And it is not created through empty promises, but through consistent actions and authentic stories that touch people’s hearts.

In a world full of key figures and algorithms, we can therefore draw an emotional conclusion:
At the end of the day, it is once again us – the people – who decide whether a brand is valuable or not.
And this is precisely what makes the question of the “true value of a brand” so fascinating and complex.

We ask ourselves these questions often enough.