Branding sets the stage for customer preferences, buying behavior, and customer loyalty that makes it a powerful asset.
Your target audience is conditioned to believe that they can get what they want, when they want it. They have choices – lot of choices. They can shop around until they find the item they prefer. Buying power is commonly dictated by conveniences, which have been accelerated with technology and social media. Online content is highly influential in buying behavior. Consider that presenting a brand consistently across all platforms can increase revenue by up to 23% (Forbes).
Your target audience can buy from you or from any one of your competitors. So, when they choose to buy and then buy repeatedly as a trusting, loyal customer, you are building value in your brand. The potential for the brand to increase in value makes it your most powerful asset.
Understand branding is an asset.
Before your target audience knows about your product or service, you have to make them aware of your company and what you sell. That requires some investment in your branding.
You can invest in your business in many ways, but you would not invest in something unless you thought it would gain value. You want to make money.
Consider that many investments are tangible, such as equipment and supplies. They are essential for business. When you buy equipment and supplies, you expected the expense will generate money right away and then over time as they depreciate, you replace them.
Branding is an intangible asset. It might be an expensive investment initally, but how does it correlate to making money?
When you build a strong brand, it carries weight and influence in the value of your business. Depending on the strength of your brand, the weight and influence can decrease or increase the value.
Remember that your reputation has value and can affected your price, labor costs, and other expenses. A report compiled by the people at LinkedIn found that a great brand can decrease hiring and training costs by as much as 50%.
Your customers have an emotional attachment.
An important concept in understanding why branding is your most important asset is realizing that your customers have a choice. You could sell the exact same products and services as your competitors, but your customers choose to buy from you. It is more than just loyalty. They buy from you because of a connection or an emotional attachment to your brand. In fact, 94% of people said they’d be highly likely to recommend a brand they were emotionally engaged with (Influencer MarketingHub).
Knowing what your customers want, how they perceive what you are offering, and what behaviors cause them to buy can help you create the branding experience that brings a premium price. Although you can’t quantify the profits directly from your brand, it is the branding that makes the difference as your most powerful asset.
Treat it with the value it deserves.
It is essential to take pride in your brand, put your best face and intention into it. When you treat it as an asset that will bring success, it will perform.
If you need ideas of the necessary steps to build your brand, a great place to start is with a consultation with our Chief Brand Strategist, Natasha Davis. Schedule an appointment.