Is branding worth the investment? And how much should a business owner invest in their brand?
These are the typical questions business owners face when developing their business plan. What if there was a way to determine the revenue generated by your brand? In this blog post, we dive into multiple studies that show the direct value of having a brand strategy. And more importantly, how having a brand strategy is the lifeline and health of your business.
1) Builds Customer Relationship
The customer-brand dynamic has significantly changed over the last century, and is even more rapidly changing in the last decade. It’s evolved from a transactional relationship based on product features and benefits, to an emotional relationship based on shared beliefs, values, mission and principles. According to the 2017 Cone Communications CSR Study, 87% of consumers stated they would purchase products based on brand values that aligned with their own. At the end of the day, people seek to make a positive contribution to the economy. And they exercise this power by supporting certain brand values.
2) Increases Revenue
However, it’s not merely about strengthening your customer relationship. Having a brand strategy also contributes to building a thriving, long-standing business. A 2016 Imperative/LinkedIn study discovered that 85% of companies that had a clearly articulated brand purpose that was well understood and received by their audience, experienced positive growth, while 42% of companies that didn’t prioritize communicating their purpose, experienced a drop in revenue.
3) Builds Employee Morale
We also see a healthier business environment internally. A brand strategy cultivates happier, well functioning company culture, which ultimately builds a stronger relationship with your employees and partners. According to the Imperative/LinkedIn study, 73% of purpose-driven employees reported high satisfaction with their jobs. People are inspired by vision; contributing to a greater purpose. Therefore when you work for a company that has a well articulated brand strategy and deeply rooted values and vision, the work becomes more meaningful and thereby more enjoyable in working towards achieving these goals.
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So prior to launching your business, build a brand strategy within your business plan to ensure the longevity and success of your business. These are just a few examples of how we can measure the direct value of having a brand strategy.
There are also other factors, such as increased company value, customer loyalty for new product/ service launches, market share and more.
Check out this brand calculator, which will show you how much revenue a good brand can generate each year. This allows you to determine if branding is worth the investment.