Does Brand Equity Matter to Financial Services Brands?
Anne Rivers
Managing Director
DOES BRAND EQUITY MATTER TO FINANCIAL
SERVICES BRANDS?Anne R ivers
Manag ing D i rec to r, BAV GroupFebruary 2018
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“If this business were to be split up, I would be glad to take the brands, trademarks and goodwill, and you could have all the bricks and mortar—and I would fare better than you.”
—John Stuartformer Quaker Oats chairman
BRAND ASSET®
VALUATOR (BAV®)
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THE WORLD’S LARGEST DATABASE OF BRANDS
52COUNTRIES SURVEYED
$150MMINVESTED
1.2MMCONSUMERS & GROWING
23YEARS OF LEARNING
56,000DIFFERENT
BRANDS
75CONSISTENT
METRICS
CATEGORY AGNOSTIC
COMPREHENSIVE BRAND MEASURES OF HEALTH, PERSONALITY AND LOYALTY ACROSS INDUSTRIES
WIDELY PUBLISHED AND VETTED BY ACADEMICS
TIED TO FINANCIAL PERFORMANCE
WE MEASURE BRANDS ON FOUR PILLARS OF BRAND EQUITY AND MOMENTUM
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DIFFERENTIATION RELEVANCE ESTEEM KNOWLEDGE
Unique Meaning Appropriateness Regard Understanding
Relates to margins, loyalty and cultural currency
Relates to market penetration Relates to perception of quality and respect
Relates to consumer experience
B R A N D S T R E N G T HF u t u r e G r o w t h P o t e n t i a l
B R A N D S T A T U R EC u r r e n t O p e r a t i n g V a l u e
WE PLOT OVER 3,500 BRANDS IN THE US TO SHOW RELATIVE BRAND EQUITY
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NICHE/MOMENTUM
NEW & UNFOCUSED EROSION
LEADERSHIPMASS MKT
DIF REL EST KNO
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e …
DIF REL EST KNO
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DIF REL EST KNO
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BRANDS WITH BETTER EQUITY PERFORM BETTER IN THE MARKET
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BAV® BRAND ENERGY INDEX OUTPERFORMS THE MARKET The 50 s t rongest ga in ing brands, as measured by our brand equi ty metr i cs ,
cons is tent ly outper form NASDAQ and S&P 500
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
S&P 500
CAGR: 1.79%
CAGR: 2.77%
CAGR: 4.29%
Source: BAV, USA, All Adults, Half-Years, Dec 2001–June 2016
* Dollar value based on half-year returns of the BEX, NASDAQ and S&P 500 on a hypothetical $10,000 initial investment
* BEX Index returns weighted by change in brand strength for each period
WE HAVE TIED BAV® BRAND EQUITY TO VALUATION METRIC ACROSS CATEGORIES
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Among Non-Profits, Brand Translates to Donations
BostonRedSoxNewYorkMets
NewYorkYankees
BostonCelticsDallasMavericks
LosAngelesLakers(2006)
MiamiHeat
NewYorkKnicks
DallasCowboys
NewEnglandPatriotsNewYorkGiants
NewYorkJetsPittsburghSteelers
BostonBruins
NewYorkIslanders
NewYorkRangersPittsburghPenguins
y=19.264x+96.248R²=0.66
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
0 10 20 30 40 50 60 70
Fran
chise
Value
($mill)from
Forbes
BrandAssetfromBrandAsset®Valuator
In Sports, Brand Equity Predicts Franchise Value Country Brand Strength Drives Economic Power Globally
Intangible Assets per Dollar of Sale
NICHE/MOMENTUM
MOST FINANCIAL SERVICES BRANDSEND UP IN THE ERODED QUADRANT
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NICHE/MOMENTUM
NEW & UNFOCUSED EROSIONLEADERSHIP
MASS MKT
DIF REL EST KNO
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e …
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SO DOES BRAND MATTER FOR BANKS AND FINANCIAL SERVICES?
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YES – IT IS THE ONLY THING THAT MATTERS
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UTILITIES
BANKS AND UTILITIES CORRELATE AT 85% AND FACE SIMILAR CHALLENGES
BANK
REGULATION
RISK MANAGEMENTMITIGATION
OPERATIONALEFFICIENCIES
CUSTOMERSATISFACTION
MARKETINGAND
BRAND
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HOW BRAND MATTERS
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DRIVES CONSUMERS THROUGH THE FUNNEL
CONNECTS WITH VARYING CUSTOMER GROUPS
DRIVES FIRM VALUE
1.
2.
3.
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BRAND ELEMENTS DRIVE FIRM VALUE FOR FINANCIAL BRANDS
1.
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BRAND HELPS YOU CONNECT WITH EACH CUSTOMER GROUP
2.
0
50
100
0 50 100
BR
AN
D S
TREN
GTH
(Ene
rgiz
ed D
iffer
entia
tion
& R
elev
ance
)
BRAND STATURE(Esteem & Knowledge)
Millennials
Females
Hispanics
HHI $100k+
HHI $50k+
HHI $75k+
Males
Democrats
Republicans
Small Businesses
Enterprise Decision Makers
Boomers
American Bank Brand by Audience
Brand Considerers
Brand PassionatesBrand Users
Base: BAV, USA, 2017; Various Audiences
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BRAND DIFFERENTIATIONDRIVES CONSUMERS THROUGH THE FUNNEL
3.
Base: BAV, USA, 2017; All Adults
Credit Card Brand
020406080
100
020406080
100
Bank Brand
020406080
100
020406080
100
020406080
100
020406080
100
D R E K
020406080
100
020406080
100
D R E K
D R E K D R E K
D R E K D R E K
D R E K D R E K
KNOW
CONSIDER
USE
LOYAL
BRAND DIFFERENTIATION IS WHAT THE FINANCIAL SERVICES CATEGORY LACKS
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0
20
40
60
80
100
Citibank BankofAmerica Chase T-Mobile AT&T VerizonFiOS(Internet) XFINITY LevelUp ApplePay Square PayPal.com Kickstarter Facebook Microsoft Amazon.com Google Apple
ENERGIZED DIFFERENTIATIONALL ADULTS
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SO THE QUESTION IS, DO REGULATIONS, RISKS OR OPERATIONAL CHALLENGES
MATTER TO BRANDS THAT ARE CONSIDERING JOINING THE FINANCIAL
SERVICES SPACE?
0
50
100
0 50 100
BR
AN
D S
TREN
GTH
(Ene
rgiz
ed D
iffer
entia
tion
& R
elev
ance
)
BRAND STATURE(Esteem & Knowledge)
Niche LeadershipVISA
MasterCard
Bank of America
Discover Card
Wells Fargo
Chase
American Express
TurboTax
Citibank
Capital OneCiti
Merrill Lynch
Equifax
Charles Schwab
Quicken Loans
Credit Karma
FICO
LifeLock
Quicken
Experian
NYSE
Fidelity Investments
Barclays
Vanguard
Moneygram
BloombergHSBC Sun Trust
Kickstarter
TaxAct
TD Bank
Ally Bank
U.S. Bancorp
BB&T Bank
Deutsche Bank
Regions Bank
Key Bank
UBS
SAP
Square
Samsung Pay
Sharebuilder
Paychex
Guardian Life Insurance
Deloitte
XeroVoya Financial
Credit Suisse
Accenture
Santander
NewDay USA
Thomson Reuters
RBS
RBC
KPMG
LevelUp
Venmo
American Family Insurance
MetLife
UnitedHealthcare
USAA
JPMorgan Chase
NASDAQ
HOW WELL POSITIONED IS YOUR BRAND?
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QUESTIONS
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H O W P E O P L E
ENGAGE
MORE HOLISTIC INSIGHTSA N D A D E E P E R , C L E A R E R U N D E R S T A N D I N G O F T H E C O N S U M E R J O U R N E Y
W H AT P E O P L E
DOW H AT P E O P L E
THINK
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THANK YOU!FEBRUARY 2018