Introduction to The Brand Vitality Index ™

We want to share the insights we’ve developed over the last decade into how brands create and maintain the type of relevancy that energizes their customers. We call this type of relevancy Brand Vitality and the companies that enjoy it also enjoy tremendous advantages like:

  •  Lower costs for growth
  • Greater lifetime customer value
  • Loyalty that makes them virtually competitor proof

What’s interesting is that while brands like Apple or Nike get all the attention, by no means does your brand need to be a household name to create the type of vitality that drives these types of results. You simply have to commit to connecting with your customers at a deep level, and the discipline to stay focused on the long-game, and avoid tempting short-cuts.

In a world where marketing is being called upon more and more to back up their efforts and strategies with measurable results, we’ve created a tool we call The Brand Vitality Index.  We’ve shared much of what contributes to creating vitality in our paper The 5 Principles to Sustaining Brand Vitality.

The initial members of The Index highlight just how powerful the impact vitality has on brands. Public companies whose actions justified being in the index for the past ten years have seen their stock price rise by an average of 696%, while the S & P and the Dow are up approximately 60% – more than a 10x difference in valuation growth.

What does a company need to do to qualify for the index? They must meet eight criteria:

  • A 5 year track record of action and performance (with a preference of keeping things going to 10 years).
  • They must be customer-centered, as judged by their customers. They realize that we’re all in the “tribe-creation” business.
  • While these companies are all very profit disciplined, sales and profits are not THE focus; they’re a byproduct.
  • Their marketing and promotion move beyond a transactional focus and are fully integrated. They’ve achieved a 3-dimension brand.
  • While they can be selling products or services, they’ve moved beyond a commodity and provide true experiences and influence their tribes.
  • They use the right metrics – they’re disciplined and focused.
  • Their brand is proactive; they provide leadership and are always moving forward.
  • They’re innovators. They’re the ones that set the stage and push the boundaries.

We’ll be writing much about The Index, and the companies within it in the future. We’ll also be releasing our final list of companies who comprise The Index, and we’ll be adding and removing brands from the list as actions deserve.

Here’s Where You Come In:

Before we finalize the list, we want to practice what we preach. We want to engage – and ask you, our tribe, who you believe belongs in The Brand Vitality Index. You can send us an email or leave a comment below. Please share the company you recommend and how you feel they meet these criteria.