Branding has always been a vital part of business—and no, we’re not talking about just “a logo.”
Branding cannot be understated. It forms the bridge between a business and its customers, built on trust, loyalty and even emotional connection. Understanding and harnessing this power, is how businesses distinguish themselves in tightly competitive markets and importantly, build future-proof relationships.
With branding, you get some control over how people perceive your business. It’s a luxury in a world awash with endless information.
A basic reason for branding is simply to get recognised. Quickly, fast, aptly, and more frequently. Our brains always look for shortcuts without even realising it, and consumers are no exception.
Simply put, if you have strong branding, it will ensure people take note of your business as it moves through the world. And we’re not talking about a logo or just some nice colours and fonts.
Put yourself in consumers’ shoes. If you had to make a snap-decision between a company with clear, unique, professional branding or one which hasn’t made much effort or is pretty inconsistent, you know which one you’d choose. Not to mention, which one you’d trust.
Brands like Apple, Nike, or Starbucks haven’t achieved their monumental status by just offering functional products and hoping people simply “get” the overall brand.
Companies that outperform the S&P 500 also have tight branding in common with one another.
A study by the Design Management Institute revealed that over a decade, design-led companies (ones that prioritise branding) outperformed by a whopping 211%
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The link to Return on Investment
While it’s easy to see how this translates into sales, it’s also important to remember the bigger return-on-investment picture. Strong branding can attract the customers who may be willing to pay more—and buy more.
We’re not saying these people will buy for visual appeal, but rather what the brand stands for. A good brand and brand story helps consumers perceive value, associations and connection to their lifestyles. Through this, higher price points are more understood by consumers, resulting in return on investment (ROI).
With a strong brand, word-of-mouth recommendations become easier for customers to share together. Reputations increase, alongside gaining of brand advocates, the awareness and reach, and the traffic and sales conversions that comes with this.
Branding and advertising naturally go hand in hand. Think of advertising as the next step from a strong brand.
So how does a strong brand move through the world in advertising? Cohesion, representing business’ identity and values. This can be a challenge when you haven’t taken the time to form your brand. Throwing seeds out and just hoping something will grow is not going to work. If you’re advertising without solid branding, you’re missing out on the great opportunities of an effective campaign.
Quick-Fire Tips
- Branding’s effects are often long-term and not a one-time effort. Continuously test and refine as you interact with the world.
- Understand your target market inside-out.
- Compare your metrics to industry standards or your previous performance, to give context on your brand strength.
- If you’ve invested in branding and see a consistent upward trend, the efforts are likely paying off.
Many businesses simply place branding on the back burner to prioritise more pressing initiatives such as customer service, digital marketing and all the various functions of running a business that take up considerable amounts of time and energy.
However, neglecting to pursue strong brand building could be detrimental to the health and performance of a business.
Research(2) indicates that branding increases familiarity as well as brand equity, driving sales volume while increasing the overall value of a company.
Purchase power is driven by two criteria – familiarity and equity.
High brand awareness doesn’t always mean having a fantastic reputation. A healthy brand is only as valuable as the number of people who know it, and in a way that resonates with them.
Take supermarket shelves, for instance. They’re lined with dozens of variations of essentially the same products; some better, some worse, but they all fulfil the same need. Since competing on price isn’t the most sustainable—differentiate through strong branding is where value lies. It’s this that drives long-term customer understanding, and of course, sales.
E-commerce is also where making a strong impression and communicating quality takes centre stage—especially when shoppers can compare different brands at the click of a button. When branding is done properly here, it can boost conversions and get you those additional sales.
No matter where your consumers might unearth your product or brush past your service, it’s the existing building of the brand that will be supporting sales velocity, growth and your overall business valuation. It makes sales projections more sustainable, and the overall business will hold its value.
While it’s hard to quantify (at least at first), focusing on the intangible components of branding can cultivate loyalty that benefits business in the short- and long-term. From the jump, branding positions you before you start to grow.
So how do you ensure your branding is benefiting your business?
Look at some brand health metrics. Looking at how customers’ perceive your product, services, image, and communication will give you a window into their world. Are they happy with your brand? Which aspects speak to them? How do they speak to them? These will all give you a glimpse into the health of your brand in the court of consumer opinion.
Should your ROI of branding not measure up, then it’s time to form a new strategy and give your brand a tweak—if not a rebrand.
You always see the bigger picture when you are in touch with your business values and mission. You can make essential decisions knowing what your business needs. You will always have a north star with a brand that combines the moving parts beyond the logo.
A strong, recognisable brand that customers know where they stand helps ensures future business and above all, consistently building the value of your brand and ultimately your financial return.
