3 Ways Brand Development Benefits Your Business

During slow times, a business' first instinct is to cut costs. I came across a recent statistic showing how increasing brand loyalty by just 2% is equivalent to a cost reduction program of 10%. Wow! This just underscores the importance of driving your company through the use of an effective brand strategy, a strategy which highlights your claim of distinction.

Losing focus on your brand is an easy thing to do. The phone is ringing, payroll is constantly around the next corner, and business owners are always looking for that next bit of income. It's easy to "fall off the wagon" and forget about the importance of sticking to the plan.

A properly designed brand strategy is executed day after day and pays back in different ways.

1. A strong brand allows you to charge a higher price for your goods or services. This could be because your customers recognize you, they've heard their friends talk about you in a positive way, your customer service is second to none, or your packaging is more attractive. There are countless other reasons, but the point here is you are able to charge higher prices which means higher margins. By losing focus of the plan and going after the easy money, you have removed your claim of distinction, thus enabling customer's to make a decision based solely on price. Now you are a commodity.

2. Businesses with good brand strategies have higher customer loyalty. This loyalty means more success when you launch new products or services. I alluded to this earlier, but customer loyalty plays a huge factor in your success. Statistics show 50% of customers would rather pay a premium price to use your product than switch to a competitive brand¹. Let me repeat that. 50 percent of people are not concerned with price, they want you! On top of that, when you roll out a new service or product, they are more likely to try it because of the goodwill you have grown with that customer. You have credibility and trust.

On June 29, 2007, Apple released the iPhone. The device revolutionized what people thought of a cell phone -- being the first to play video, music, and boast a touchscreen interface. In the first week, Apple sold over 700,000 iPhones. Fast forward one year to the eve of the iPhone 3G release, loyal Apple customers once again camped out on sidewalks across the U.S. in anticipation. Why? Apple continued to deliver on their promise of stylish and revolutionary devices by releasing the iPhone in 2007, and the slightest hint of an even "better" device was irresistible. By the end of 2008, Apple had sold 13.7 million 3G iPhones. Loyalty and trust like this is not bought, nor is it created over night. Apple is executing a long term vision and brand strategy that has been going on for over 2 decades.

3. Strong brands are also talent magnets. Potential employees want to work for a winner. When your brand is strong you will see an increase in applicants and quality of applicants. This pays off in two ways. One, recruitment costs are much lower because applicants are coming directly to you. The money saved by not using a recruiter service or temp agency is substantial. Second, more talent at your company means you have more experts. More expertise results in better processes and better products. This translates to higher margins, higher prices, and higher profits.

Starting to see a pattern? A properly crafted brand strategy prevents brand decay and keeps profits and net worth high. Concentrate on your brand and begin to take control of how people view it. Over time, with discipline, it will pay dividends in higher sales. Ultimately, your business and it's reputation will be worth significantly more.

At Kelsey Advertising & Design, we handcraft custom brand strategies for every single client on our roster using our holistic approach, benefiting companies of all sizes. As the only Certified Brand Strategists in Georgia, and one of only a few credentialed brand strategists in the country, I mesh insightful research and a proprietary discovery process with traditional advertising and fast-moving digital techniques. This unique combination gives life to complete plans addressing each client's brand development and marketing needs.

Remember, your brand is a claim of distinction, and the "results addicts" at Kelsey won't sleep until we deliver your distinction in the most effective and creative way possible.

¹ Davis. Prophet's Brand Asset Management for the 21st Century Study.