Strong brands correlate with superior business performance. Since 2007 the stock market performance of the Brand Finance Global 500 has outperformed the S&P 500 by a factor of 22%. Notably, the “Brand” firms had higher returns, did not go as low and recovered faster from a downturn. Data shows strong brands and financially strong companies are not only closely correlated, companies with a strong brand have better financial performance.
Many companies, specifically in the B2B sector, have failed to recognize how building a strong brand can positively impact their business results. They may know that there is a disconnect between what their market believes about them and what they want the market to know, but haven’t fully appreciated how working on their brand will resolve this challenge.