Branding is one of the best investments a company can make, particularly if the company is not growing, or growing very slowly.
Branding shouldn’t be looked at as a cost but rather an investment. When it’s done right, good branding can reap great returns. Here’s 5 tried and tested returns that will impact your revenue positively for many years to come.
1. Attract targeted customers
Researching a brand helps identify the types of customers that are better aligned with your companies culture, purpose and vision. When you know who your ideal customer is, it’s easier to target messages directly at them. These are the customers that are likely to purchase your product or service and be loyal to your brand. Loyal customers ultimately become brand advocates, selling your company or service to their friends and family.
2. Charge premium prices
People don’t buy products, they buy brands. It’s an opportunity to position yourself as an industry leader and offer value that your competitors don’t. When you differentiate yourself meaningfully, it allows you to justify your brand value and charge premium prices. Premium prices equals increased revenue.
3. Easily close sales
Well defined brands are easier to sell because they have been positioned in the customers mind already. A compelling story has already been defined through brand strategy. With a cohesive and enticing brand most of the work has already been done, making it easier for your sales team to close deals with confidence.
4. Spend less on marketing
A brand that your audience understands and can relate to will increase the efficiency of your marketing efforts. When you understand who you are selling to you can develop campaigns with messaging relevant to those valuable customers. No more wasting time and effort on scattered messaging. With a strong brand identity your company is differentiated right from the word go.
5. Increase your company value
Increasing your brand equity is second to none in the value of a company. Not only does it allow you to increase the prices of your products or services it also has a positive effect on share price. How your brand is perceived can influence customer behavior and impact financial performance. Good branding becomes an asset when it comes time to sell, much like renovations on a home.