February 05, 2016
Before we delve into the answer to this question, it is best to assume that you, the reader, have no knowledge of marketing or branding. Then we will tackle the topic at hand by defining what a brand is, since most people think that a brand is synonymous with a logo and a color palette.
The real definition of a brand:
A brand is the embodiment of all the values and goals held by a company, plus the perception of its audience. It goes beyond the visual aspects or what it expresses, and it is also about execution. While the visual component is responsible for attracting customers, a brand is really the entire personality of a company. In short, a brand is the whole enchilada.
Back to value:
Okay, so now that we've cleared that up, it is important to note what a superior brand can achieve. A well-designed and sharpened brand increases the value of a company, helps employees find direction, and seizes the attention of your target audience. And it is this captivation what converts people into customers.
A brand can only provide this type of result when all parts of the business are working well together. Does your customer service match your brand promise? Does your advertising and logo carry out an accurate message? Does your reputation match your brand? If you answered no to any of those questions, your brand is not healthy, and neither is your company.
A strong brand builds financial value for a company, and it guarantees future business. The greater a company’s devotion to build its brand, the better the financial return from its efforts. If you’re wondering how a strong brand provides financial value, keep reading.
It starts with recognition. A well-designed logo is memorable and powerful— yielding an immediate impression of your company. A good logo is essential, because it will be placed on everything your company produces. Recognition of a brand helps to add financial value to a company because people prefer doing business with a well-recognized and established brand.
Then, there is trust. A professional looking visual component helps make a company look trustworthy and reputable. It is not surprising that people are more likely to buy from a company that looks legitimate. In school, they teach us not to judge a book by its cover, but in the real world, we judge companies on the emotional reaction we have to their design.
What’s your position? If a company does not have their brand position defined, it is likely that they will try to be everything to everyone: a classic way in which businesses fail. If you offer a broad range of services, you won’t be able to build a strong impressions in every market. It is important to create a brand position, and allow it to dictate what the core of your business is.
High employee moral adds plenty of financial value. Employees aren’t just driven by work. They need to feel they are an integral part of the business. When employees understand the position of your company, they are likely to feel pride in what they do, therefore they work towards achieving goals. Employees should be proud to wear your brand, and feel a part of it.
Lastly, but possibly most importantly for you, a brand builds financial value because it is responsible for generating new customers. If your company isn’t memorable and doesn’t deliver an exceptional experience in every facet, you can forget about recruiting new clients and getting referrals. If people can’t remember you, then your days are limited. Customers should be able to remember your name and the experience they had, so that they may share it with others. Customers should also be proud to share your brand with the people they know.
The most profitable companies, despite their size, have one thing in common: a good brand. Building a strong brand, whether local or national, is critical to achieving success and greater financial benefits.