In a world where short-term metrics often dominate boardroom discussions, brand investment can seem like a long game. But the returns are very real — and measurable. At Phoenix Studios, we believe that brand is not only a creative asset but a strategic lever of enterprise value. Here's how to measure its ROI across the three challenges we work with brand leaders on:
Birth: Launching a New Brand
At this formative stage, brand investment is about establishing market presence, generating awareness, and building credibility. Measuring ROI here starts with market traction:
- Brand Awareness Lift: Benchmark pre- and post-launch awareness levels through surveys (e.g., YouGov, Toluna). A strong launch can see unaided brand awareness rise 25-40% within 6–12 months [Source: Nielsen, 2023].
- Customer Acquisition Cost (CAC): Track reductions in CAC over time. A well-executed brand launch can reduce CAC by up to 30% by increasing conversion rates and shortening decision cycles [Source: McKinsey, 2022].
- Early Market Share Gains: Use sales and market share data to track entry success. A strong brand launch can accelerate time-to-profitability by 12–18 months.
Renewal: Repositioning for Relevance
For established brands facing erosion or stagnation, renewal involves repositioning to re-energise growth. ROI at this stage focuses on re-engagement and preference shift:
- Net Promoter Score (NPS): A repositioned brand with stronger relevance should see an uplift in NPS. Industry averages suggest increases of 10–30 points post-repositioning [Source: Bain & Company, 2024].
- Revenue Per Customer: Stronger positioning enables premium pricing and cross-sell. We often see a 10–15% lift in average order value within 6 months.
- Share of Voice to Share of Market Ratio (SOV:SOM): If a brand's SOV exceeds its SOM, growth is likely. A renewed brand should target a 1.2+ SOV:SOM ratio as a leading indicator [Source: IPA Databank, 2023].
Immortality: Strengthening for Long-Term Value
This is about future-proofing. ROI here is tied to resilience, retention, and market leadership:
- Brand Valuation: Use recognised models (Interbrand, Brand Finance) to quantify brand as an intangible asset. Companies with strong brands command 31% higher EBITDA multiples [Source: PwC, 2023].
- Employee Retention & Recruitment: A compelling employer brand reduces recruitment costs and churn. According to LinkedIn, strong employer brands see 50% more qualified applicants and 28% lower turnover.
- Exit Value: In PE contexts, brand strength can drive higher exit multiples. EY reports that portfolio companies with brand integration in strategy achieve 20% higher exit valuations [Source: EY, 2024].
Brand is not a soft metric. When managed as a strategic asset, its ROI is trackable, defendable, and transformational. Whether you're birthing a new brand, renewing a fatigued one, or future-proofing a market leader, clear KPIs must be defined upfront and tracked relentlessly.
At Phoenix Studios we build brand value. Let’s talk about how yours can rise to the challenge.
