Why before what: 4 reasons to invest in branding design
As Ralf Speth, the CEO of Jaguar Cars, puts it, “If you think good design is expensive, you should look at the cost of bad design.” We believe branding is one of the most valuable assets of a company. Here you can find the five most important reasons for investing in branding design.
Branding increases your brand value in the market.
Two factors determine a brand’s value: first, the financial amount the brand is worth on the balance sheet. This enhances your product’s and service’s value beyond their functional value. Second, brand value is determined by how your customers perceive your brand concerning the value it adds to their needs. According to Maslow’s hierarchy of human needs, there are five levels of needs. They consist of physiological (food and clothing), safety (job security), love and belonging needs (friendship), esteem, and self-actualization. So, the clearer your brand delivers your message to satisfy the customer’s needs, the greater your brand value. Companies are distinguished from the competition through strong branding. You can achieve the company’s value through the following:
- Consistent and clear messages that connect with the target audience
- Great customer experience
- The brand’s unique selling point
- Quality of your products/ service standards
Branding enhances consumer awareness and generates business sales.
Brand awareness is the consumer’s familiarity with the unique qualities of your brand. It helps customers connect with your company and build recognition and trust. Research shows that growth in your share of voice can increase market share. This indicates that brands that control more of the conversation within the industry will have better brand awareness and obtain a greater percentage of the market. Specifically, being present on social media will increase consumers’ awareness and trust. Eighty-nine percent of consumers say they’ll purchase from a brand they follow on social media.
Strong branding can infuse values, trigger good behavior, and shape society.
Using the power of your brand, whether it’s small or large, can create positive change in your community. Companies like Ben & Jerry’s, Disney, Netflix, and Nike, have all taken a stand for Black Lives Matter. Toms, on the other hand, is celebrated for its charitable model. The brand gives away 30% of its profits to grassroots causes to address localized issues, like ending gun violence.
If you’re afraid that taking a stand will lose customers, note that many buyers expect brands to take a stance on societal issues rather than remain silent. According to a research study, 56% of survey participants thought companies were responsible for speaking out against racial injustice, and 60% expected brands to actively invest in fighting the roots of injustice. Standing on social issues will increase your brand awareness and popularity. Although such acts will eventually increase your perceived values and enhance your sales, you should stand for social justice issues and do the right thing even when there is no gain in return.
A good brand image improves your employee’s pride and satisfaction.
A purposeful brand will help you retain your employees, acquire better candidates, and reduce hiring and marketing costs. Aligning the company’s purpose with your employees creates a magical culture that spreads into a positive reputation. With a good brand reputation, current employees will be more satisfied and speak positively about your company. They’ll act as your brand ambassadors and, as a result, recruit employees through referrals and positive word of mouth. According to a study by Mckinsey publication, “Employees expect their jobs to bring a significant sense of purpose to their lives. Employers need to help meet this need, or be prepared to lose talent to companies that will.”
