Most business owners are aware that their brand is important. But in terms of understanding the actual tangible value of investing in your brand — there can be a disconnect. The ROI on brand investment however is extremely high, and can be the difference between whether your business coasts along, fails or goes from strength to strength. A study by the Marketing Science Institute of 220 products found that a superior brand preference commanded a price premium of 26% on average, even when there was no difference in quality. Brand getting more of your attention now? Let’s take a look at what a strategic and well-crafted brand can achieve.
There’s no point having an incredible product or service if nobody has ever heard of it. Great branding will help put your business on the map (so to speak), and make it stand out from the competition. As customers become familiar with your brand, they’re more likely to choose and recommend it to others. So it works two-fold… great branding can help create initial awareness but then it builds an army of loyal followers who help to spread that awareness, as they become advocates for the product or service. This is where some visual elements can come into the picture, for instance — your brand colours. Using a signature colour can increase brand recognition by up to 80%. Which will help to build that familiarity of the brand and also wider-spread awareness.
People are becoming more and more discerning about where they’re willing to spend their money. They want to know that any brand they engage with, truly understands their needs and has similar values and beliefs. And this helps to build trust, and connection. When you invest in developing a brand that communicates to the right audience effectively — you’re not only adding brand value in sentiment but you’re also adding value to the price point. If people trust your brand over others, they’ll be more willing to pay a higher price for your offering and then you’re able to influence the price-point in your industry. Sounds pretty valuable right?
People love to connect authentically with brands. They want to feel like they’re engaging with a business that will add some value to their lives beyond simply the product or service they provide. So this is another element that brand has a huge impact on. The way people feel when they interact with your brand is going to be the most memorable thing they take away. If they have a great experience, they’ll always come back for more and your brand personality plays a big part in this. Every engagement is important and another opportunity to be remarkable.
This brings us to our next point: consistency. Brand helps build consistent service and communication — which is hugely important when it comes to the value of your business. If your messaging or product is inconsistent, people get confused, lose trust and that gives rise to reconsideration around whether to choose your brand or not. Most of the time, they’ll choose the brand they understand, is reliable and has clear and uncomplicated messaging. It’s also about building a reputation. Every single touchpoint your customers use to come into contact with your brand needs to have the same level of service and attention. When you’re not clear on the brand itself, then this consistency gets compromised and that can really impact the value of your business. In fact, consistency of brand representation has been seen to increase revenue by 30%.
Your brand should be built on your purpose — the mission you have underlying everything you do. Customers love to know the story behind your business and communicating that within your brand messaging can add insurmountable value. It also works as a guiding light to help you stay aligned with your goals as your business evolves or expands. It’s ok to change course a little bit, but when you have a clear purpose that is interwoven into every aspect of the brand, it will ensure that even as you make course adjustments for the better, at the end of the day you’re still delivering on your greater purpose. Being meaningful is good for the success of your business…with 77% of consumers more likely to buy from brands they share a purpose with. So you need your consumers to know what that purpose is, it needs to be clear. Connection based on a similar underlying belief system is what binds your customers to your brand, for the long-term.
Fundamentally, defined and meaningful brands help businesses create growth and longevity. They differentiate you in the marketplace, create a deeper engagement with your customer and drive healthier profits. And as they say, money talks. So when looking to understand the tangible value a brand brings to a business, you don’t really need to look any further than the bottom line.