6. July '17
Strong branding is great for business
Investing in your brand is one of the best business decisions you can make, but it is also one of the hardest to measure in terms of pure economic benefits. Branding is essentially a holistic process that develops a business culture that draws people to it - both external customers and internal employees - and it is this cohesive nature of branding that provides the economic benefits to your business. Here are the four key business reasons why you need to invest in creating a strong brand.
1. Influence customer choice
The amount of influence you exert over your potential customer's choice will depend on how connected they feel to your brand. To put this simply - the stronger your brand, the greater the influence you will have. Strong branding is a shortcut to your brand promise; it provides your customer with instant recognition and keeps you top of mind.
It is a shortcut to your customer's memory of their last experience of your brand - so if this was a great experience, it shortens the time that they need to decide to use you again. A strong brand acts as the express checkout in our time-poor world.
2. Attract, retain and motivate talent
Weak employer brand image and reputation lead to poor candidates, disengaged and resentful employees, high turnover and reduced organisational performance. A key component of building a strong brand is the internal branding work that you do - the business culture that you create. Highly engaged employees provide your business with cost efficiencies through a reduction in training and recruitment costs.
Your reputation is the value proposition for potential new talent, and strong brands attract, retain and motivate the best talent. Here in the Northern Territory people are a scare commodity, so how do you attract, and keep, the best people in your business?
3. Build customer loyalty.
Strong brands create loyal customers, and loyal customers are profitable customers - their spending increases over time, they are more likely to try new products and services, they are more engaged, they're less price sensitive, they cost less to service, and they also become your brand advocates.
4. Command a price premium
The laws of supply and demand dictate that the more uniqueness you build into your product or service, the more you can control the price. In this day and age we are saturated with products and services, which makes it harder and harder to differentiation. So where do you get your uniqueness from? For a product, technology or service that has been patented, substitution or replication is hard, but these are rare.
So, how do you differentiate? You do it through branding. The power of branding to create differentiation can be clearly demonstrated by the success of branded water. As Charles Fisherman so succinctly puts it: "the success of water brands provides the world with over 20 or 30 varieties of something for which there's no actual variety",
The most important thing to remember is that the true benefits of branding can only be realised when a business embraces the idea that a brand is more than a logo.
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Economist (2014) Accounting for brand: Untouchable intangibles
Kalb, I (2014) Why Great Branding can make you more money, Business Insider
Mosley, R (2015) CEOu2019s Need to pay attention to employer branding. Harvard Business Review
Wallace et al, Attracting and Retaining Staff: The Role of Branding and Industry Image.