Calculating the ROI on a Brand Center

How brands and brand centers create value

At the core of the business model is a conceptual framework on how brands create value. There are numerous methods for calculating the value of the brand (check out this book to see all of them) with most sharing a common framework that measures value creation in four ways: 

• Efficiency of brand governance: Producing marketing ads and collateral has a material cost. Lowering the expenses tied to the process contributes to value through reduction in general and administrative expenses. Automating brand governance through a Brand Center will lower the costs to administrate a brand. 
• Consistency for a premium: Given the manifold ways brand are expressed, consistent presentation of the brand creates an advantage. Brand centers change the speed with which a brand builds this advantage with a consistent brand presence. Advantage leads to a brand premium. 
• Touchpoint impact: In addition to creating touchpoints, brand managers seek to increase the impact a touchpoint has on the customer. Impact equals revenue. Brand centers raise the effectiveness of marketing impact. 
• Risk to brand failure: Corporations pay higher interest rates if their revenue stream is deemed risky. Poorly managed brands lose share price and borrowing costs rise. Brand centers assist in governing the brand to mitigate the risk to brand reputation and future revenue streams.