What is Brand Voltage?
Brand Voltage is a one-number summary of the growth potential of a brand.
Brand Voltage takes into account how many people are very loyal to the brand (the brand's bonding score) and claimed purchasing data for the category to produce a single Brand Voltage number.
+ A brand with a positive voltage score has potential to gain share from its own marketing actions and resist the actions of competitors.
- A brand with a negative voltage score can still grow, but will have to work harder still; over time it will be more vulnerable to the actions of other brands.
Here is an example from the US apparel market:
Brand Bonding Score and Voltage
The Bonding Score quantifies the current strength of the brand while Brand Voltage indicates its future potential.
Therefore, we can see that although Nike and Tommy Hilfiger have the same percentage of consumers who are bonded with the brand, Tommy Hilfiger has a positive voltage score, meaning that it is more efficient at converting consumers up the pyramid than Nike. Old Navy is in an even stronger position and more likely to gain market share in the future, as indicated by its voltage score.
The link between Brand Voltage and market share has been validated by tracking brands over three years.
A Proven Link Between Brand Voltage and Market Share
Analysis of the BrandZ database has shown that, on average, brands with a high Voltage have subsequently grown market share. Being moderately strong is not sufficient to generate significant share gains.