Column 12 · Brand and Market-Based Assets · Era 6, Engagement and Networks (2010s)
Brand-Customer Asset Link
Inputs: resources and assets · Major · Cluster IV, Customer and Brand Assets
Description
Stahl et al. linked the dimensions of brand equity to customer acquisition, retention, and profit margin, showing that brand and customer assets are connected and that some dimensions trade off against one another.
Managerial Implications
Brand equity drives customer lifetime value, but its dimensions work differently: knowledge and relevance raise acquisition, while esteem and differentiation have more complex effects, with high differentiation sometimes limiting acquisition. Managers should connect brand tracking to customer metrics rather than running them separately, and decide which brand dimension to invest in based on whether the current need is acquisition, retention, or margin.