It’s neither easy nor cheap to build a brand—so why bother? And how should you measure the return on your brand investment?
Whatever you sell—any product, any service—your customers are ideally buying exclusively from you - again and again, into the future.
In other words, your ideal brand not only creates short term revenues but secures future revenues. You don’t just secure a sale; you secure a customer. ROI on that has two sources—brilliant brands do double duty.
First, the absolute revenues. Strong brands, as we’ve seen, will generate a steady stream of sales and - typically but not always—sell at a premium and a higher margin.
Second is the value creation of brand investment. Often the economic value of the brand outstrips tangible assets: for instance, a current global brand study values the Apple brand at $214 bn. This is an extrapolation of the future revenues the brand has been estimated to secure.
This value is a function of many variables, but here are 5 basic principles or brand fundamentals that will set you on the path to a brilliant, valuable brand. And it’s not just about spending a fortune in communications.
Here’s how you can craft a brilliant brand:
Staying on brand—Everything about the brand communicates. Everything. This is good and bad news. Staying on brand, purchase after purchase, builds confidence in your brand, deeper affinity and loyalty. Commitment and trust in the brand grow exponentially. The opposite is fatally true - going off brand can destroy your brand value overnight. Just like people, a brand can act out of character and confuse or even build resentment among customers - and the stronger the brand, the more this is true. Trying to cut costs in a way that hurts quality, changing the tone and manner of communications recklessly, producing a sub-brand that doesn’t jibe with the master brand. On the other hand, a strong brand can build the kind of equity that creates forgiveness if you make a false move - but don’t count on it.
At the end of the day you’re after the illusion that every individual customer feels like the only customer in the world! Many may purchase your brand but the dialog—the relationship—between you and the brand is unique. So use these brand fundamentals to help set you on a path to a brilliant, valuable brand.