Increase Your Profit By Having A Strong Brand
The biggest companies on earth owe much of their success to great branding, which associates an organization with values and images. The key to building a winning brand strategy that translates into profit has much to do with quality and reputation. Here's a look at how strengthening the brand can raise the bottom line.
How Brands Connect with Revenue
Some of the world's biggest brands include Apple, Microsoft, and Facebook. These three tech giants have each invested millions of dollars in developing a brand strategy that ties their products together with themes appreciated by followers. The result has been no end in sight to consistent long-term profit. Consumers have learned to identify with brand characteristics, leading to brand loyalty.
The idea that brands can become famous overnight is somewhat of a myth. While market disruption by new entities is always in play, it usually takes several years of business development before a company begins to command market share. In the ramp-up toward profitability, a company aiming for global success usually invests in brand development for a period to establish familiarity in the market.
Once a brand becomes familiar, it can gain trust among consumers who seek what it offers. It often starts as one product that blossoms into a line of different products that associate with the same brand values. In the 80s Sony was a brand name that many consumers of electronics came to trust to the level of eventually owning a collection of Sony products. Today Apple and Google are leading brands winning the trust of consumers.
DATA: 89% of shoppers stay loyal to brands that share their values. (Fundera)
Keys to Brand Establishment
The building blocks of branding involve visuals and value-oriented messages. At the core of every brand strategy is to get as much market exposure as possible through appropriate channels. Digital marketing campaigns mixed with traditional media can be the key to increase profit through target market saturation. Ultimately, the brand must resonate with consumers on a conscious level for them to become loyal.
Studies show that brands with strong reputations have a 30 percent higher return on profits than companies that don't rely on reputation. One of the pillars of a strong brand is that the company's employees are excited to spread the word about its products. The other vital key to build the brand's visibility in the market is to associate with positive customer experiences that appear in online reviews. Brands that connect closely with customers via digital communications have the best chances of competing in the digital age.
Last century's companies made the bottom line the key focus, whereas more modern companies emphasize customer satisfaction as the path to increase profit margins. The internet has opened the door for consumers to seek brands beyond what is presented to them in traditional media. The result has been a more empowered and diversified consumer in full control of purchasing choices. In that sense, modern branding must be sympathetic to consumer experiences.
DATA: Brands that blog generate 67% more leads. (BrandBuddah)
Why Storytelling Helps
Developing a brand strategy often resorts to storytelling in a manner that creatively shares insights about the brand's values. An example of how values and brands go together is the rising concern for environmental protection. Companies that share the value of going green can connect with a market that might not otherwise care about their offerings. So telling a story about how a person learns to become more eco-friendly can be an effective form of branding.
Telling stories about a product is a fun way to connect with consumers who seek entertainment even in video marketing. The story needs a beginning, middle and end, in which the storyteller decides to go green and reduce waste after learning about the environment. A brand that focuses on going green can become part of the symbolism of the culture and the era, particularly on a local level.
The connection between storytelling and profit is that people are constantly bombarded with hundreds of brands every day and can't escape the effects of marketing. So many choices are shaped by the enormous range of messages people constantly absorb. These days storytelling through blogging is what makes a brand stand out from the crowded internet of endless brands and niche products.
DATA: Presenting a brand consistently across all platforms can increase revenue by up to 23%. (Forbes)
The advent of the Personalized Brand
One of the ways technology has revolutionized branding in the 2020s is that companies now have the technology to personalize sales with consumers. Using customer relationship management software that allows you to create profiles on every customer, it's easy to track what an individual likes about a product. The customer's entire purchasing history with the brand can be analyzed to connect with them on a more personalized level. The customer's opinions can be collected through email, phone, online surveys, or social media.
With the tools to identify patrons, a company's brand strategy can now be built on maximizing data collection on each customer. The result of increased engagement will be more profitable. Personalization has become a major factor this decade for organizations in meeting the bottom line due to increased competition. The goal to increase profit can be reached by players that gain a competitive edge through technology that enhances personalized engagement.
Data: Color improves brand recognition by up to 80%. (Forbes)
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