The organizational culture you establish may be your most valuable asset and the key to your growth. Although culture and brand are both thought of as hard to define, measure, and manage, it’s important to understand the impact of brand equity on profit margin, customer acquisition, and customer retention. Being able to measure the value of your business culture will ultimately drive authenticity within your organization.

What Is Brand and Culture?

First, let’s define culture and brand. To effectively manage both, it’s important to understand what they are.

Brand is a top-of-mind identification of a product, service, or company. It’s not necessarily a word, but it is more of an idea associated with the organization. It’s the intangible characteristics that make up a company, product, or service.

Culture is the set of behaviours, values, and perspectives shared by people within an organization. Culture is the glue that holds a team together and facilitates collaboration.

Why Are They Important?

These two concepts are important to measure because they have a significant impact on the overall success of an organization.

Brand and culture are intertwined because they both impact each other.

When the culture is aligned with the brand and product, the company attracts customers who are also aligned with the brand and product. This ultimately improves retention, which contributes to the success of the organization.

Brand equity is a product of brand as well as brand management. A strong brand and effective brand management are both key components of a strong brand.

Which leads us to the next question.

How Do You Quantify the Value of Your Brand and Culture?

Measuring brand and culture might be difficult at first since they exist within your workers and consumers. For decades, marketing research has investigated the influence of brand equity on profit margin, client acquisition, and customer retention. Brand equity is one of the most important components of ‘goodwill’ in company value, but it genuinely influences your profit margin daily. You can find measurables in:

Customer Lifetime Value (CLV): CLV is the amount of profit a brand or company generates from a single customer. It combines customer acquisition and retention costs to calculate and predict the customer’s lifetime value. Two of the most important measures of customer lifetime value are customer retention rate and customer acquisition cost.

Customer retention rate: The percentage of customers likely to remain loyal to a product or service over time. The number of customers who stay with a brand or product indicates brand loyalty.

Customer acquisition cost: The average cost of acquiring a new customer. It can include the costs of advertising, marketing, and promotional expenditures.

Net Promoter Score (NPS): NPS is a way to measure customer loyalty and advocate marketing efforts. It’s a simple metric that can be used to measure a company’s brand equity over time. NPS measures the likelihood of a customer recommending a product or service to a friend.


Without a strong brand, you will likely not be able to compete in the marketplace. The role of a brand is to build on your strengths and mitigate the weaknesses within your organization. By creating a strong brand identity, you can strengthen trust and loyalty with your customers (and potential customers).

Want help figuring out brand equity and more? Partner with us today! We offer the best digital marketing services in Phoenix. Elly and Nora Creative is a boutique branding, publishing, and public relations firm in Arizona. We appreciate the impact you’re trying to make and want to help you reach your target audiences as effectively as possible.