For years, businesses have believed that the power of their brand could overcome most obstacles. It’s why executives were often tasked with “protecting the brand.”
In recent years, though, research has shown that the value of relationships with your customers is much more important than your brand. The Harvard Business Review (HBR) analyzed data from more than 6,000 company mergers and acquisitions over a ten-year period to evaluate brand value and customer relationship trends, finding that brand value steeply declined around 2008.
Interestingly, the value of customer relationships saw a spike (and steady growth) around the same time.