The important role that brands play in the company-customer relationship, providing clear differentiation and fostering customer loyalty, has never been more important. Brands are a key factor in the success and prosperity of all types of businesses, regardless of their revenue level or type. The analysis of the impact of satisfaction and loyalty on business results shows that most of it is achieved on the basis of intangible attributes, with emotions taking center stage. The key is to know what the brand is and what makes it strong.

It is still too often the case that many brand managers are based on a one-dimensional, customer-centric approach. Undoubtedly, the customer is important since he is the one who makes the final decision to buy or not, but this orientation is not enough to keep the brand competitive in the future. Companies need a 360º vision that takes into account all stakeholders to understand and be able to quantify the real impact of the brand. In each case, it will be necessary to consider the particular circumstances, but we must not forget to think about influencers, investors, vendors, media, regulators, internal talent, as well as the aforementioned customers. Each of these has a direct impact on brand health, as both internal and external factors are involved. The weakening of any of them constitutes an entry point for brand health problems.

In this reflection, the first step is to understand what we mean by Brand Health, but first we have to start by identifying Brand Equity.

What is Brand Equity?

Brand Equity is the combined result of brand strength built through three concepts: knowledge, preference, and finance.

Awareness measures a brand’s ability to generate functional and emotional associations linked to it throughout the multiple stages of its recognition.

Preference refers to the competitive position of a brand in the market concerning its competitor brands. Customers go through various levels of brand preference, from simple awareness to loyalty.

Financial metrics measure the monetary value of a brand through various parameters such as market share, revenue generation capacity, transactional value, growth rate… These are measures that facilitate the estimation of a financial value for the brand.

Brand Equity is a quantitative measure of the brand’s value in the minds of consumers.


What is Brand Health

Brand Health, on the other hand, is the value perceived by different audiences through their contact with the brand as a result of its use, behavior, experiences, and attitudes. Brand Health includes Brand Equity and frames it in the environment in which the public interacts with the brand, and also takes into account the degree and manner in which this translates into a certain behavior concerning the brand.

A healthy brand is a guarantee of good sales capacity, attracting resources, attracting and retaining the best talent, and sustained growth.

Measuring Brand Health

To measure them, it is necessary to isolate certain elements and link them to the development of the business, reconciling short and long term, investment and return.

Determining the appropriate metrics to perform the measurement is going to be crucial to achieving an effective result. They must be simple but with the capacity to adapt to each moment and valid for periodic measurements. Each company may need specific indicators, but for measuring brand health there is a common starting point in the combination of three concepts:

Brand Context: it starts from the positioning of the brand about its competitors and takes into account the quality variables that define its effectiveness.

Brand Equity: as seen above, based on notoriety, degree of preference, and financial performance.

Brand Responsibility: refers to the commitment acquired by the brand to its public and its behavior to achieve it.

Each of these can be broken down into as many factors as need to be evaluated. All of these measurements together result in an overall view of the brand’s health.


When the tracking is not only focused on the customer but also takes into account the different stakeholders, the result is very close to the reality of the global perceptions of the brand. Very close therefore to the state of the brand’s reputation.

Recurrent measurement and monitoring of brand health, based on well-structured metrics, provides management with the necessary data to define strategic and tactical decisions for the future, as well as to detect possible crisis paths well in advance.

Measuring and analyzing is the basis of knowledge. It is an opportunity for all types of companies to get a real 360º vision of their brand in the market, evaluate their situation, and facilitate their growth.


Carlos Puig Falcó

President of Branward®

Photos: Shutterstock