01 Apr How Brand Power Lifts Revenue
If a company truly wants to grow and expand its bottom line, then there few things that are more detrimental to getting to the next level than prioritizing process efficiency over brand power (not that efficiency isn’t highly important; it is). A company with a strong brand has considerable advantages over companies who do not. While this might seem obvious, there are plenty of companies that forego the brand building experience because the initial investment has returns that are hard to track, initially. Here is some information about how brand power lifts revenue…
Brands are stories
The reason that a brand is so valuable is that a brand isn’t just about fulfilling a quick need that a consumer has. A brand is a story. A brand is never trying to sell you a product, but a lifestyle, in and of itself. Think of Coca Cola, which is one of the most recognizable brands of all time. Coca Cola doesn’t sell you a carbonated sugar drink. Coca Cola’s brand is about enjoying a Coke on a hot summer day with the people that you love. It sells you a feeling. Never underestimate the power that a brand can have when it wields a narrative.
Customers feel loyal to a brand
On a technical level, having a brand is an excellent way to separate yourself from your competition. The reason for this is customer loyalty. Consumers want to feel connected to a brand. They want to feel like they are a part of a special group; something bigger than themselves. When customer loyalty is there, repeat business will continue to climb, which is crucial in an era where first-time customers are getting more and more expensive to attract.
People pay more for a brand product
People like products that they can trust. A strong brand identity helps consumers feel more comfortable about a product, and they are willing to pay more for this comfort and level of trust. For this reason, brand products are able to carry a higher price point than faceless products. This higher price is a competitive advantage that allows a company to keep their returns high, without having to sacrifice their base.
Nobody talks about a product unless it has a brand
Word of mouth marketing is always going to be an advantage in favor of branded companies. A faceless product doesn’t generate conversation. In the meantime, a brand identity makes things like product placement and viral marketing in the realm of possibility.