Why Invest in Branding?

As we’ve seen, brands are ultimately perceptions. It’s ironic, then, that the hesitancy of some CEOs to invest in branding boils down to a matter of perception as well.

It isn’t easy to draw direct correlations between successful branding and quantifiable returns. But the simple fact is you can’t put a price on the value of developing a truly authentic brand.

So, why invest in branding?

The operative word here is “investment.” Too many companies see branding as just another expense counted against their marketing budget.

But when you understand how integral branding is to influencing consumer behavior, you see that it’s more than just a tactic.

Branding is a long-term strategy that can yield measurable returns throughout the life of your company.

Take a look at just five of the top returns you’ll get from your branding investment:

Central to any branding initiative is customer research. In-depth interviews, focus groups, and online surveys enable you to precisely identify which customer types align with your company’s purpose and values.

With this information, you can create clearly defined audience personas and craft messaging that’s specifically targeted at your ideal customers.

Ideal customers aren’t just more likely to buy what you’re selling; they’re also significantly more loyal in their relationship with your brand. And few things are more valuable than brand loyalty.

The easiest way to make your marketing efforts more effective is to invest in the brand they stem from.

When your brand is cohesive and well-articulated, your marketing initiatives will be too. Branding encompasses the essential “first steps” that define your core messaging, brand personality, and tenable marketplace position.

The customer research involved in branding allows you to develop targeted marketing campaigns that are highly relevant to your most valuable customer segments.

A bold new identity makes every marketing touchpoint more engaging, while the guidelines and templates that come out of branding will save you time and money on the content of all your future initiatives.

Ask any salesperson on the frontlines of commission warfare and they’ll tell you: Well-defined, strategically positioned brands are just easier to sell.

That’s because value propositions are built into the brand narrative of a well-positioned brand. This takes a huge weight off of the shoulders of its sales team because a good portion of their work has already been done well before they engage with potential customers.

Branding gives your sales force a unique advantage, better enabling them to close deals quickly and confidently.

It’s true what they say: customers don’t buy products, they buy brands. And customers are willing to pay premium prices for brands they perceive as superior.

A white t-shirt from Hanes will cost you about $5. A white t-shirt with an Armani tag will run you north of $150.

Effective branding enables you to position your company as an industry leader with value propositions that none of your competitors can offer.

This type of meaningful differentiation has tangible value built into it. It solidifies your worth and allows you to command higher prices for your goods or services.

Never underestimate the power of brand equity. In addition to justifying increased price points on your offerings, it can also have a positive effect on your share price.

Stronger brands realize stronger financial performance. The long-term result of branding is that your company itself is worth more when you’re ready to exit.

Not unlike the cost of home renovation, an investment in branding delivers valuable returns when the time comes to negotiate a selling price.