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ProfitBrand: How to Increase the Profitability, Accountability and Sustainability of Brands
Fusion Brand, Sep 2005, Pages: 240
Spurred by CEO and CFO demands for greater accountability, marketing executives are moving toward metrics-based branding that can conclusively demonstrate branding's impact on profitability. ProfitBrand: How to Increase the Profitability, Accountability and Sustainability of Brands a new book by Nick Wreden, provides strategies, tools and techniques to ensure that branding investments pay off.
The book has received endorsements from brand gurus Don Schultz, the author or co-author of more than seven books, including New Marketing Paradigm: Integrated Marketing Communications; Philip Kotler, author of: Marketing Management: Analysis, Planning, Implementation and Control, the most widely used marketing book in graduate business schools worldwide; and George Stalk, senior vice president of Boston Consulting Group. Additional endorsements have come from Heath Row, editorial and community director of Fast Company magazine, and other top editorial and branding figures.
Most branding books concentrate on spending money with more advertising, public relations or promotion. By contrast, ProfitBrand is focused on how brands can make firms more profitable. While everyone knows that branding is a strategic imperative, it still must justify in measurable economic terms the resources that it requires.
ProfitBrand offers a comprehensive metrics-based approach to branding that allows companies to directly link branding activities with bottom-line results, provide marketing and other departments with the spreadsheet-driven discipline to perform, and help ensure that profitable customers buy not once, but again and again. ProfitBrand also illustrates how to do business on customer terms - the one competitive differentiator that cannot be duplicated in today's customer economy.
ProfitBrand defines branding as “a long-term profitable bond between an offering and its customers based on economic, experiential or emotional value that is measured by customer profitability.” Using examples from large and small companies worldwide,, the book explores how to establish, grow and sustain that profitable bond. Targeting segmentation and customer planning are critical to profitable branding. All customers are not created equal: Not only do 20% of customers generate 80% of profits, but about 15% of customers are actually unprofitable. But many firms cannot identify the lucrative 20% nor the losing 15%
To determine relative customer profitability, ProfitBrand provides specific formulas that range from easy-to-calculate RFM (recency, frequency, monetary value) to advanced calculations that can require ABC (activity-based costing). Because existing customers are more profitable than new ones, ProfitBrand provides an extensive discussion of retention branding, including the ability to do business on customer terms, loyalty programs and customer winback/recovery initiatives.
ProfitBrand also demonstrates specific steps to increase customer profitability through brand penetration and other tactics. Brand penetration, incorporating customer, account and product penetration, involves getting more business from more profitable customers. Customer planning, which matches sales and other resources to current or expected profitability, is also discussed.
Focusing on profitability, accountability and sustainability, topics rarely covered in other branding books, ProfitBrand is essential reading for anyone involved in the business of marketing and branding. The book will help justify branding investments in terms even the most frugal CEO and CFO can understand.
ProfitBrand is essential reading for branding and marketing professionals, CEOs, finance directors and students of business and marketing.
'ProfitBrand does a superb job in showing how companies can gain by tracking individual customers' profitability, and not simply basing their strategies on aggregate measures such as sales and market share.' -- Philip Kotler, Kellogg School of Management
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