by Ellis Malovany
Vitality Quotient (vQ) is a metric that measures five core elements in determining the health of a brand: Purpose, Communication, Experience, Innovation and Love.
Brand purpose describes how well a brand meets the needs of its consumer. Communication measures how well a brand communicates with the consumer via its marketing and advertising. Brand Experience is derived from the satisfaction a consumer has when interacting with a brand. Innovation relates to how unique and inventive a brand is in its perception and in the delivery of its purpose. Finally, Love quantifies the strength of the emotional connection consumers have with the brand. Each metric has equal weight in determining the overall ‘vQ’ score.
Brands with strong performance versus competitors in each of these five areas are ’Healthy’, Brands with a mix of high and low scores are ‘OK’. ‘Frail’ brands fall short in five areas indicating overall vulnerability and risk of competitive threats. In general, across all categories measured in the BrandZ Top 100 Global Brands, Healthy brands have grown 2.5x in brand value versus Frail brands, and in Australia Healthy brands are worth around six times as much as Frail brands.
In general, Australian brands match up well with the rest of the world, however, there is a greater proportion of Frail brands in the Top 40 relative to the rest of the world, while only 25% of the Top 40 brands are scored as Healthy.
While Australia’s banks have the greatest value, they don’t make the top 10 on any vQ metrics scores, indicating an opportunity for them to brand build as a way of driving value in the future.
The brands that top the list in Vitality are primarily retailers who stand out by delivering clarity, innovation, and a great experience that translates to love. Bunnings, Dan Murphy’s and Woolworth each understand that brand health must be continually nurtured. Similarly, consumer brands that deliver experiences that are consistent and enjoyable, like Qantas in travel or Arnott’s in Food show strong vitality driven by trust and a consistent brand experience. Insurance and telcos do feature in the top 10 of some of the metrics (innovation and communications) but banks, energy brands, and other industry leaders listed in the Top 40 are notably absent.
Brands can build their vQ by:
Delivering clear and consistent communications across all touchpoints and ensuring that all customer interactions with the brand reinforce the brand’s purpose and values.
Leverage the power of AI, ML and other technology tools to individualize interactions on digital platforms but don’t forget that great face to face interactions are often more telling than the anonymity of the digital experience.
Frail brands should begin by evaluating the what and the why for their frailty. Using these areas as start points will yield better results than trying to tackle too much at once.