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The Rising Impact of Brand

Patrick Campbell Apr 26 2018

A great brand absolutely increases the willingness to pay and retention amongst customers. As the data suggests, brand just might be your new secret weapon

On this episode of the ProfitWell Report, Lidia Lüttin, former CMO at Bynder and now CMO at Happeo asks us to dive into the data around brand. To answer her question, let’s look at the data from over 1,000,000 consumer transactions and nearly 3,000 companies.  


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Brand's impact on willingness to pay

We coded respondents perception of a company’s brand before measuring their willingness to pay.

Those customers who perceived a company’s brand positively had between a 16% and 41% higher willingness to pay than the median.

Those on the negative perception side had 15-33% lower willingness to pay. Neutral respondents were willing to pay about 6-15% less than the median. Based on this data, brand not only drives higher willingness to pay, but also can very much detract from your ability to sell to your customers at the level necessary to succeed.

Interestingly enough when we start to break this data out across ARPU and industry, the narrative remains the same.

Brand Drives Higher Willingness to Pay - Graph

High and low ARPU consumers with positive brand perception see between 14 and 35% higher willingness to pay. 

B2B and B2C breakouts are eerily similar, both on the positive and negative sides of perception.


Brand's impact on retention

Digging even further, retention tells a similar story, as those folks with a positive perception of brand have roughly 11-18% better net retention and those customers with poor perceptions of brand seeing about 12-15% worse retention. 

Brand Drives Higher Retention - Graph


Brand and other intangibles continue to grow in importance

The bottom line is - as more and more features get built, competition remains on the rise, and the function aspect of software becomes less differentiable, these formerly intangible pieces of your product - brand, design, and even support - will continue to become more and more important. 

Well, that's all for now. If you have a question, ship me an email or video to and let's also thank Lidia for sparking this research by clicking here to share on LinkedIn and don't forget to give her a shout out. We’ll see you next week. 

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By Patrick Campbell

Founder & CEO of ProfitWell, the software for helping subscription companies with their monetization and retention strategies, as well as providing free turnkey subscription financial metrics for over 20,000 companies. Prior to ProfitWell Patrick led Strategic Initiatives for Boston-based Gemvara and was an Economist at Google and the US Intelligence community.

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