Company leaders are realizing little by little that their brand is their most valuable asset. However, this was regarded as a novel idea not long ago. In 90’s, the organization’s priorities had a major shift in favour of brand development. So, the question lies why do companies focus on brand management through their valuable resources instead of using the same to boost their profits tangibly? Here are a few benefits of branding:
Gaining Customer Loyalty
As quoted by the industry experts, it is 6 to 7 times harder to secure a new client than it is to retain an existing one. When a brand is backed-up by the evidence of performance and is consistently communicated to its consumers, this fosters loyalty.
Becoming a Market Leader
iPhone has become a market leader because of a well-planned and well-executed Brand message which resonates with its customers: “challenge the status quo.”
Standing Beyond the Competition
When you communicate your brand effectively, it marks a clear difference between you and your competitors. Marketing is not about making unrealistic, gimmicky claims neither about being best at everything. This means if you have a grocery store, having an unparalleled seafood section might do the job.
Branding means all your marketing strategies are focused on your unique value proposition rather than on trying to convince customers to use your brand. Customers appreciate when you maintain focus out of necessity.
Building a Unified Stronger Team
This means that you should hire only those people that believe in the same values as your brand. And, in turns, when you possess a visibly strong brand, it gets easier to attract talent that is highly-qualified.
When everyone at a company plays by the same rule, everything is made simpler in an organization. It is easier to keep everyone on the same page through the Brand Lens and to steer all aspects of the company smoothly in the right direction.
Protection against Economic Variations and Price Undercutting
When your brand exists within a poor economy, then competing simply by price gives your brand lesser flexibility. The economic change is less likely to affect you if your brand has a strong presence.
Price Knowing Your Worth
When you have a brand-driven business, it is easier to introduce products with higher prices since you can effectively communicate with the consumers its value through your image.