Do you know branding is a matter of life and death for your business?
Investment in branding is what often goes overlooked but it silently plays with the fate of a business.
“The way a company brands itself is everything – it will ultimately decide whether a business survives.” ~ Richard Branson
Yet, some business leaders question the requisite of investing in branding believing that is merely a luxury.
Haven’t you ever wondered why $150 for a pair of sneakers doesn’t sound too much when having the logo of Nike on it?
This is how branding decides the customer’s behavior and gives your business a reputable position in the market. Thus, no one can deny the importance of branding for the success of your enterprise.
Let’s discover how branding yields high-value Returns on Investment and whether it can be measured.
What Is ROI In Branding?
We all are familiar with Amazon, Disney, Soho, CocaCola, Adidas, and McDonald’s like popular brands. We not only love to use their products but would be glad to work with these brands.
These companies are turned into strong brands, not with a single marketing campaign. It took them years of investment in branding to be right there.
Smaller marketing campaigns give an instant return on investment but investment in branding gives you outstanding benefits in the long run and establishes your brand value.
Branding helps you to stick out from your competitors and indirectly helps you generate more sales. Investment in branding lets you develop an emotional connection with your consumers.
No matter how unique and effective your products are, if you have not invested in branding, your business may not survive for too long.
A strong brand achieves triple sales volume on average than weaker brands according to Millward Brown.
Why Should You Invest In Branding?
You should invest in branding because it builds your brand recognition. Your brand color and theme are recognized by your customers and they are more likely to buy your product.
Similarly, when your customers begin to trust you, it develops customer loyalty to your brand.
In the long run, strong brands consistently outperform the market index, showing that branding produces a high return on investment.
The investments in building brand value and brand equity help businesses with increased brand awareness and reach, increased web traffic, and conversions.
Ultimately a strong brand will generate more sales revenue year after year. It may also act as a barrier for competitors to enter the market in the future. We can observe all around us how branding translates into sales and how brand awareness is proven to be a key to high-value returns on investment.
How Does A Strong Brand Affect Your ROI?
Marketing without a brand is like starting from scratch every time you start a new campaign. With each new campaign, you need to find and convince a new audience and it is easier to encourage sales from an existing customer than a newer one.
In contrast, when you have a strong brand, your marketing campaigns last longer. You need to invest a little in marketing campaigns just to know more about your consumers and provide them with what they are looking for. It reduces your costs on marketing.
Investing in branding gives a high-value return on investment (ROI) ten folds in a way that attracts more customers. It develops their loyalty to your brand which makes them pay a little more for your products and buy more often.
Once you have built a strong brand, your customers will more easily be convinced and you will not have to invest much in marketing. A little gap in marketing campaigns will not greatly impact sales if you have a strong brand.
Can The ROI Of Branding Be Measured?
Many businesses are well aware of the importance of brand equity which measures the customer’s preference to prioritize your brand over others and pay more for your offerings.
As the marketing metrics focus on immediate returns on investment without accounting for the long-term impacts of branding on business. Thus, the ROI on branding often goes unmeasured which results in undervaluing the importance of brand equity.
You can measure the ROI of branding by evaluating the KPIs of brand awareness and brand performance. These metrics can give you an estimate of the performance and success of branding.
You can measure your brand awareness by measuring the KPIs for website traffic, community size, brand recognition, reach, and impressions. You can measure the success of your branding efforts, you can introduce surveys for prospects, and measure KPIs for sales and leads, repeat purchases, referrals, customer satisfaction, brand valuation, and market share.
Advanced software and tools such as management and marketing tools, trackers, pay stub generator, and various analytics tracking software are used to track branding ROI, business growth, and for other means.
In order to get high-value returns on investment, you need to build a brand not only a business. Position your brand by creating a logo, colors, and theme, and set visual standards that represent your brand. Your visual brands help your audience recognize you in a sea of other brands and companies.
Next comes to focus on brand voice. How would you like people to perceive your brand? Create your own voice tone and run your campaign following the same tone, language, message, and perspective. Consequently, your brand will resonate more strongly with your audience as their expectations grow.
“Define what your brand stands for, its core value, and its tone of voice, and then communicate consistently in those terms.” ~ Semon Mainwaring