Unlocking superior brand and business performance. It’s been well researched that Share of Experience will play a central role in marketing measurement in the future. The Experience Capital Index quantifies the positive financial impact of creating compelling brand experiences.
We partnered with Millward Brown and BrandZ, the world’s largest brand equity database, to decode brand experience into four critical and measurable components. The findings show that the highest performing brands are able to integrate design, business model improvements and new technologies to create powerful customer experiences that unlock new revenue streams.
Accelerating business growth through customer experience innovation
The CEOs who will be successful in the future focus on two burning questions: how to grow topline revenues and how to generate greater bottom-line profits? The first requires identifying future opportunities with more valuable customer groups, accessing latent markets and creating category shaping products & services. While the second requires joining the dots across their operations so that people, products and processes are optimised together around the customer.
New data analysis by Group XP has led to a breakthrough in how the most valuable brands drive both revenue and profit growth. This reveals that higher performing businesses focus on creating and delivering extraordinary brand experiences that uniquely engage customers to build enduring and highly profitable relationships. These brands are able to integrate business model improvements, new technologies and design to create innovative customer experiences that unlock new revenue streams. While facilitating better cross functional team work and binding the entire organisation cohesively around the customer and their needs. It is this holistic approach to creating customer experiences that delivers on CEO’s needs for increased business growth and efficiency. Building on thinking done at Brand Union, the Group XP Experience Index quantifies the financial impact of creating compelling brand experiences. These data results are reinforced by Harvard Business Review’s study: “The most important marketing metric going forward will be Share of Experience”.
By combining the 4 components equally we are able to create a single score for each brand and create an Experience Index for all brands in the BrandZ database. We also proved this had a strong relationship with current consumer demand. We were then able to examine the relationship between brands with High, Medium and Low Brand Experience Capital scores and their trended brand value over a ten year period.
‘Working with the team at Group XP has helped diagnose and quantify the role of brand experiences in building financially successful brands’. Martin Guerrieria, Millward Brown
Ultimately brands with High Experience Capital scores were MUCH more likely to experience value growth than those with Medium Experience Capital. While those businesses with Low Experience Capital scores actually declined in value over the same period.
For CEOs & CMOs the results are clear; creating a superior customer experience accelerates business growth. The most valuable brands exhibit a profound customer centricity that enables more innovative approaches to business models & technologies and this results in customer experiences that can generate completely new revenue streams.
Iain Ellwood, Strategy Director, Brand Union & Group XP.
To receive a copy of the report or for any further questions on the Group XP Experience Index please contact Ksenia.email@example.com
To access the full BrandZ 2016 results click here