Does good branding make your small business more money?
As a small business owner, we’re going to guess you wear 10 hats – maybe even more? The buck stops with you, right? You’re working long hours, you’re carrying the weight of the entire business on your shoulders, and you’re full of pride and joy for this business you’ve created. We see you. We’re in the same place as you. Every little investment you make is crucial to the bottom line of your business, and you’re curious about taking your brand to the next level, but unsure about the actual impact it will make for your business?
Will it really be worth it?
There’s no guarantee, and you shouldn’t expect quick results.
Branding is one of the elements that need to work together in order to produce results:
- Marketing, networking, advertising, or PR are required to bring attention to your brand. If no one has ever heard of you, that gorgeous brand won’t do you any good.
- Skilled sales can encourage people who are on the verge of a buying decision to close the deal. (And will also weed out folks who are not the right fit.)
- Exceptional client or customer service will cement your position as a trustworthy brand, and turn buyers into referrals and brand ambassadors.
- Business systems that keep your practice operating like clockwork can be used to reinforce your brand voice and visual identity, and get you repeat sales over years to come.
- Financial planning can help you set the appropriate pricing for sustainable and long-term success, while your premium brand will signal above-average prices.
If one of these elements is not yet in place, or if you at least don’t have a plan on how to implement it soon, it may be better to put off the rebranding project until you set up and test your client journey to make sure it works as intended.
So, how does it work? How can branding make you MORE money?
#1 You can charge more money
When you’ve invested in your brand, when it looks polished, when your messaging is on point, people will often invest more money. That is why luxury brands mark up their products so high
#2 Improves Customer Loyalty
Loyal customers generally spend more money on your product. Research shows that 57% of customers spend more money on brands they’re loyal to. Loyal customers tend to be repeat customers, too. They look forward to your next product release and follow you for product and company updates. Loyal customers generally perceive your product as being better than that of any other brand. Both Apple and Microsoft have a large following, and both companies’ customers perceive their respective favorite brands as being better than the other. Neither is right or wrong – it’s how they perceive the brands that really matters.
#3 Attracts Great Talents
When your brand is strong, candidates will be more interested in pursuing a position with your company compared to others. Your brand has a unique employee value proposition: something that only your company can offer its employees. If your brand has incentives and benefits that other brands don’t have, more people are likely to want a job at your company.
#4 Market More Effectively and Efficiently
If you have a really high quality brand, your message is super strong and will resonate with your dream customers, making your marketing much easier. It’s going to make your marketing money – your dollars, your budget – go that much further, and you’re not going to have to work quite as hard.
#5 Lower Price Sensitivity
Price sensitivity is a term that describes how heavily the cost of your product weighs on your target market’s willingness to buy it. The less it weighs on their decision, the better; it means they like your brand well enough to give less weight to priceThe power of a strong brand gives you the ability to raise prices. Why? Because you’ve become great at what you do. It’s not something that you can change overnight, but over time you can build a loyal following to your brand and lower price sensitivity.
Your brand is the identity customers come to know. The importance of branding with your business cannot be overstated. Branding is how customers perceive you and the blueprint of the business.