Valuing Goodwill and Customer Loyalty: Measuring Intangible Value
Goodwill and customer loyalty are two critical intangible assets that drive the success of any business. Goodwill refers to the positive reputation that a company has earned over time from customers, employees, and other stakeholders. Customer loyalty, on the other hand, refers to the emotional connection that customers have with a brand that leads them to choose that brand over others repeatedly. Both goodwill and customer loyalty are essential components of a company’s value, and it is crucial to measure them accurately to understand the true worth of a business.