What Is the Financial Impact of Good Branding?
Key to any business is a strong brand model, Here, we discuss strategies that SMEs can use to better market themselves.
As a company leader, you will be doing everything possible to grow your business, but what is the true impact of good, strong branding, and why is marketing so important? Read on to unearth some of the key financial benefits that you will stand to reap when you decide to improve your brand model.
Increased awareness and revenue
Making more people aware of your brand’s existence will stand you in better stead in your attempt to increase your revenue, there’s no doubt about that. Fishermen and women cast bigger nets if they need to catch more fish, and you need to make more people aware of your services if you want to draw more customers and turn over a greater profit.
You can increase your brand awareness in a number of different ways. If you have a big marketing fund to tap into, you can go ahead and promote your brand on a plethora of different online mediums. Don’t worry if you don’t have a lot of cash left in your advertising reserve, though. Having a small marketing fund doesn’t need to spell disaster for you in your attempt to increase your brand awareness. It just means that you have to be more strategic in your attempt to ensure that your branding model is easy to remember. Companies such as Monzo and N26 have already made a conscious effort to ensure that their product marketing campaigns are alternate and more memorable than most. Monzo have tapped into the impact color has on the memory by making a bright orange credit card available, while N26 have striven to help their audience ‘‘ by offering them their patented Metal card.
It’s not just debit cards that can make your brand stand out from the crowd, however. There are a plethora of ways for you to advertise your business in a memorable fashion. You could, for example, print your company name and logo on items that your consumers are likely to use on a day-to-day basis, . Going down this route will help your brand to remain at the forefront of your audience’s mind, simply because your consumers will come across it whenever they use the product that you have opted to print on.
Decreased price sensitivity
describes the way in which demand for a product changes based on how the price of said product changes over time. It is the degree to which elasticity in cost impacts customer buying habits. As expected, price hikes generally act as a customer deterrent in this instance. For example, should a barbershop raise its prices by an extra few dollars to cover certain costs, it will be liable to lose customers due to the fact that the same service is available close by… only cheaper.
Sometimes, due to economic inflation or personal financial difficulties, price rises are necessary. With a good branding model in place, however, you will be able to limit the impact price sensitivity has on your ability to draw customers going forward. By branding your business as a leader in its field, people will still feel inclined to bring you their custom despite the fact that your products/services are more expensive than others in your market. Think about it this way, would you shy away from paying an extra dollar for Coca-Cola’s original taste when your only other alternative was a store’s own version of cola? Chances are, not likely, and so this is important to remember.