8 Sept 2023
Beyond Instant Gratification: Eight reasons the long brand game yields future business success
By Caroline Herrick, Head of Brand & Creative
Brand building is seeing a resurgence in popularity and it’s no wonder. It’s the fuel that drives future demand and future revenue, but in recent years brand budgets have been slashed in favour of short term sales, with marketing budgets funnelled into demand gen and performance marketing.
Building your brand is a longer game that creates future, long term demand and revenue. When done well, it results in higher margins, loyal customers, reduced churn, lower acquisition costs, and can make your business more attractive to investors. Plus… having a stronger brand increases the effectiveness of the rest of your marketing activities.
These are big claims. How does investing in your brand make all this magic happen?
Increased sales and market share
In crowded markets your brand is a powerful tool to help you stand out from the competition and communicate your value. Increased recognition and credibility help to create a competitive advantage that supports sales efforts and market expansion. Research shows buyers are 4-6 times more likely to purchase from brands they are familiar with.
Reduced customer churn
Whenever people are involved, emotions are a play. Brand building fosters connection, trust and stronger, more long-lasting relationships, helping to reduce churn and increase cross sell opportunities and referrals. Trust is especially important in B2B sales, where long-term partnerships are common.
Shorter sales cycles
Prospects are more likely to engage earlier with a brand they are familiar with, and even more so, a brand that they trust. Having a well known brand removes the need to prove your expertise and credibility in every sales interaction. Referrals from loyal customers help speed up new sales interactions.
Easier market entry
A reputable brand helps facilitate market entry for new products and services. Existing customers are more likely to consider new offerings from a business they know and trust.
The stronger the brand, the more able it is to command a premium price. When customers see a business as trustworthy and superior, the perceived value they receive from them increases along with their willingness to pay more. In a PwC survey 33% of respondents said they pay more for brands they trust.
Employee engagement and retention
A strong brand not only attracts customers, it also attracts and retains top talent. Employees like to be associated with reputable and well-known brands, and often feel increased job satisfaction.
Investor and partnership opportunities
An influential brand helps capture attention and tell a compelling story to potential investors looking for opportunities, as well as partners looking for mutually beneficial ventures.
Flexibility and resilience
During challenging times or shifts in the market, a strong brand can provide stability and resilience. Customers are more likely to stick with businesses they trust, even during economic downturns.
So there you have it - eight solid reasons never to dismiss playing the long brand game, it can pay dividends (literally) in the end.
At SwayTech we work with CEOs, Founders and marketing leaders of Kiwi tech companies to help them to unlock the power of brand building to support business growth.
If you need help, or just have questions, then please get in touch👇.