Obviously companies do not spend considerable time or money in developing their marketing unless there is an identifiable Return On Investment (ROI). This article identifies some of the major areas of ROI that come from marketing that need to be used to develop and evolve Brands.
A good brand can do a great deal for your business and here’s how:
- Effective Brands increase SALES.
- Efficient Brands improve PROFIT
- Effective and Efficient Brands build VALUE
1. Effective Brands increase SALES.
By communicating a clear message that impacts on your target customers you generate better-qualified leads which differentiates you from your competitors and as a result increases your sales. An effective brand also increases sales performance by increasing customer loyalty and capturing premium pricing.
- Effective Branding retains customer loyalty. Importantly as we all know from first-hand experience – loyal customers become your best (and cheapest) sales force extolling your virtues to their friends and family. A valued Brand also keeps the customer coming back, easing the pressure on your marketing acquisition efforts, lowering your total cost of sale and increasing your profit margins.
- Effective Branding gives you permission to charge premium pricing. Recognised and understood brands command higher prices for their product because customers perceive added benefits from a brand they trust. Conversely a brand can better defend its pricing, rather than be forced into discounting during tougher times.
- Effective Branding differentiates you from your competition. Your product, organization or service can stand out from the competition, imbued with special and engaging qualities that are communicated via your brand and its brand attributes.
2. Efficient Brands improve PROFIT
By converting increased and better qualified leads into increased sales using a well understood and easily accessible brand message you will reduce wastage both financially and perhaps most importantly in terms of potential customer confusion; “what you do” and “why you are the right fit for them”. A well-articulated Brand provides more focused targeting and greater accuracy of the ‘right message’ to the ‘right customer’ segments resulting in improved marketing to sales ratio.
3. Effective and Efficient Brands build VALUE
Increased profit as a result of increased sales and more efficient and effective marketing will drive up your business value, but more importantly, your brand’s value can demand higher multiples when you are ready to sell – or when hungry acquisitors place a value on your business.
Protecting Your Brand Asset
Begin to think and treat your brand as a tangible asset. Building your brand is also a smart and effective way to build a great exit strategy for owners of independent companies.
But remember, like a child, a brand needs to be carefully nurtured, cared for, protected and managed with discipline to reach maturity in order to realise its full potential.
If you want to grow your brand and protect your business, a marketing strategy that provides the foundations for your branding tactics is as important as a sound financial plan.
So what are you waiting for? Just do it. (Now, there’s a branding thought).
BrandQuest is a strategy and brand management consultancy that intrinsically believes that great brands are born of the founders and staff who work there. They are not the result of an outsourced creative endeavour but the cumulative knowledge that a company possesses.
Since 2007, BrandQuest has developed a process that within a 3 week time frame can extract and refine this inner knowledge into a powerful brand strategy.
Our clients work with us because they seek:
- Increased brand and business value
- Alignment, clarity and direction for their Branding
- Robust, authentic and fearless advice