25 Apr Higher Reputation = Better Profits: Branding Awareness and Your Profit Margin
Creating a strong positive perception of your company is crucial for its success. Companies that invest in branding can secure an edge over their competitors for a number of reasons that all add up to more profit. Branding enables businesses to build brand recognition, increase customer loyalty, and widen their lead pool. Companies that invest in branding elements tend to see an excellent return on their investment. If you want to increase your profit margin, it’s essential to improve your company’s reputation as an industry leader through branding practices and successful management.
What Is Branding?
Before we explore the advantages of building a successful brand, let’s review what branding is. Branding is the process of building your company’s positive image or reputation through basic marketing elements like logo design, mission statements, and consistent messaging that exudes the company’s voice. Your business has a personality; branding helps you communicate that personality to customers and potential customers. As your brand takes shape, it reflects who your company is as well as what it does. A positive and more easily recognizable brand attracts customers and retains them; as that happens, businesses can experience increased profits.
What Are the Advantages of Investing in Branding?
There are many benefits that are associated with branding. Each benefit is advantageous in itself, but they also help drive a company’s profit margin. For example, it can increase customer loyalty. How does that translate into profit? Well, it’s actually cheaper for a business to retain customers than invest in advertising to replace lost customers or to find new ones. That means more marketing dollars remain in the company’s proverbial wallet. Here, we’ll examine some of the key advantages that come from branding:
Increase Your Credibility
When customers encounter a brand they’ve never heard of, what do you suppose their response is going to be? If the company is unrecognizable and there is no positive association with the business name, many consumers will reach for a product or service that is associated with a recognizable brand that has a positive reputation. Buying a product or service from an unknown brand is a risk. By building your brand and its positive reputation, you can increase your credibility; in short, customers will reach for your product or service because you are known to be credible. Customers won’t feel as if they’re taking a financial risk by purchasing whatever it is you sell.
Increase Your Customer Base
Improve Customer Loyalty
As mentioned, branding helps companies to increase customer loyalty. Customers are attracted to brands with strong, positive reputations. They’re also more likely to remain customers of businesses that share their values for characteristics like quality and integrity. Once you attract a new customer, you naturally want them to remain a happy customer. Branding supports your efforts and complements your quality products or services.
Branding is Lucrative
While it requires investment to create and market a brand, the effort has a payoff. When you have a recognizable brand that’s associated with a good product or products, you can charge what these items are really worth. Unknown brands often have to resort to lower opening prices in order to persuade customers to take a chance on them. When your company is known for quality, customers are more willing to invest in that quality and pay the higher price point.
Gives You an Edge Over Competitors
In order to compete successfully in your marketplace, your company has to outperform its competitors. Out-marketing them with a successful branding campaign is one of the ways your business can get ahead of the competition. Branding helps you position your business as unique within its marketplace. Companies that fail to invest in branding find that they lose business to companies that do invest in it. If you want to become a marketplace leader, investing in your brand is the way to drive profits and outperform your competitors.
Customers aren’t the only people attracted by great brands with excellent reputations. Your business brand can also attract talent. Great employees want to work for great companies. Your company can benefit by employing top talent in its field. Just as your business reputation can attract customers with its mission, vision, and values, it can also attract employees who respect and share those elements.
Developing Your Branding Campaign
A great deal of thought and planning goes into developing a branding campaign. Today, successful companies consult with marketing leaders like A&B Consulting Group to help them create branding that will boost their reputation in their industry and help them achieve more profits. To develop a comprehensive branding strategy, you’ll want to focus on elements such as:
- Brand and logo design (colors, font, packaging, etc…)
- Website design and development
- Social media (i.e. establish a presence on key platforms)
- Company culture and values
- Company slogans and taglines
- Customer service
Additionally, you may want to share positive customer reviews and testimonials on your website or social media platform to help you grow your business’s positive online reputation. You can also use traditional marketing and advertising measures like signage to reinforce your branding and support your marketing campaigns.
If you want to increase your profit margin, you’ll want to focus on improving your brand image. Companies that don’t invest in branding can’t benefit from the advantages that we’ve explored here. Contact A&B Consulting Group to learn more about our branding and other marketing solutions. We tailor our services to suit our clients’ needs.