New Research on How Brand Associations Drive Customer Spending

"Measuring a brand's customer surplus value helps predict which customers will remain loyal and which are likely to churn."

"Customer surplus value provides a powerful summary of how valuable a brand is to customers, but does not explain why that value exists."

"The key question for chief marketing officers and brand leaders is: What makes brands valuable?"

Customer surplus value quantifies the dollar value customers perceive a brand delivers. While it effectively predicts customer loyalty and churn, it does not clarify the reasons behind this value or methods to enhance it. Chief marketing officers and brand leaders face the challenge of understanding what contributes to a brand's perceived value. Identifying these factors is crucial for improving customer retention and overall brand strength.

Read at hbr.org