Here’s Why You’re Getting Beat by the Competition
August 28, 2018
The most profitable companies in the world make huge investments toward improving their brand and reputation; often spending millions to get it just right. Yet for many small businesses owners, branding is an afterthought. Why is this?
In this article, I’ll dispel some common misconceptions you may have about branding that could be harming your business. You’ll also learn about how a brand strategy (like the ones we develop through our BrandGPS™ process) could be one of the best investments you could make for your business.
Your Competition Is Winning, Here’s Why…
There’s a disease of misinformation spreading throughout the world of business. It’s plaguing small businesses and startups from every industry. If not caught early, then it could do great harm to your business.
Your competition thrives on your ignorance and they want you to stay misinformed.
Your competitors would prefer that you continue doing business as usual – fighting the uphill battle and constantly spinning your wheels. They don’t want you to be privy to certain best business practices, tricks of the trade, innovative ideas, or powerful marketing tactics. As brand guides, we see the results of this common complacency on a daily basis. Yet, more often than not, this disease can be cured through some education and awareness. With knowledge comes power.
Could You Be Misinformed?
The following statements shine a light on the fact that many people have a flawed understanding of what a brand is and how a brand strategy can benefit virtually every business. If you’ve found yourself saying any of the following statements, there’s a very high chance that you could be misinformed – and quite possibly doing great harm to your business without knowing.
MYTH #1: “There’s no clear ROI to branding.”
TRUTH: The fact is, there is plenty of examples of how proper branding, guided by a professional branding agency, can have a great return on investment. We’ll mention a few below.
MYTH #2: “It’s a nice-to-have, but not that important.”
TRUTH: There’s ample evidence to show that a brand strategy is not just a “nice-to-have” for your business, but a necessary step. If you view branding as just a decoration, or an “optional add-on” it’s time to step into the 21st century and stop running your business like you live in the 1950s.
The climate of the marketplace has changed, and consumers have changed with it. It’s not enough anymore to just say that you have the best prices or best quality stuff. Consumers are smarter and more engaged than ever. They will judge you based on how you look, what you say, and what you do. If any of those three pieces aren’t aligned, then you’ll be ignored.
You need to connect with consumers, not just talk about how awesome you are. They need to know who you are, what you do, what you stand for, and believe it. Developing a strategic brand should be one of the first steps in almost every business.
MYTH #3: “We just can’t afford it.”
TRUTH: In reality, you can’t afford to not have a brand strategy. But if you are an existing business, and truly don’t have any funds to invest in growing your business – then that could be a huge indicator that you need a brand strategy. A brand strategy can be one of the most important investments you make into your business. Implementing these principles, standards, and guidelines for your business can make you more profitable; making the initial investment of hiring a professional brand agency seem small.
MYTH #4: “We can hire ACME Agency to design a logo for half the price.”
TRUTH: This could be one of the most common, and most troubling misconceptions that surround branding. This antiquated idea is plaguing the world of startups and small businesses. Many people believe that spending a few hundred dollars to hire a logo designer will provide the same benefits as a going through an in-depth, comprehensive brand strategy process like BrandGPS™ – This couldn’t be further from the truth.
Investing in a brand strategy and professional brand identity is one of the most important decisions you can make.
Benefits of Branding
Your brand is the public’s response to how you look, what you say, and what you do. Without a brand strategy and professional brand identity, you’re probably missing 2 out of 3 vital pieces that make for a great brand. Implementing a brand strategy and brand identity (like the ones we provide with BrandGPS™) provides a ton of incredible benefits, uses, and tools to help your business grow – like crazy. The list below is not complete by any means, but will give you just a taste of some of the benefits you can expect after improving your approach to branding.
1. A Customer Magnet
People really want an easy connection to the brands they love. A great brand is a great reputation. It lets someone know they can trust your business to deliver the best services or products, all the time. You brand bridges the gap between your business and your customers; strengthening their resolve to do business with you. Often times this can increase metrics for your business such as conversion rates, or average order value.
2. Customer Loyalty Sky-rockets
Great and intentional branding is one of the most effective ways to increase customer loyalty. When people have a memorable experience with your brand, they will remember your brand, not only your product or service. People put their trust in brands, not products. So if your brand can connect with your customers emotionally, and build trust, chances are you’ll have a customer for life.
3. Your Message Connects
If created well, a brand strategy and identity can provide an incredible channel of communication with your audience. Your brand can inform people about your company’s value, your defining message, and unique characteristics. Things like these will help consumers connect to your business, and easily be able to identify your products vs. your competition’s. It’s important to know your customer intimately. What drives them? What motivates them? Once you find this out, design your brand strategy and identity accordingly – and growing your business is almost inevitable.
4. You Look Like a Better Choice
Do consumers know what sets you apart from your competition? Believe it or not, most people won’t just pay you money because you say that you do the best work, you provide the best quality, you’re the most affordable, and you’re just plain awesome. A real brand strategy will give you the right messaging to clearly communicate the value of your offering. Without this positioning statement, your business will just fall into the sea of a thousand competitors. A well-thought-out brand strategy will set your brand apart from the crowd, and even if the competition tries to copy you – it will just further establish and solidify your value in the consumer’s mind.
5. Who Doesn’t Like More Money?
If I offered to give you an additional 23% revenue this year but asked you to give me a small fraction of that amount in return, what would you say? You’d say yes; it’d be a no-brainer. It’d be absurd to say no.
Yet this is exactly what many businesses are doing every single year by not investing in a brand strategy, and getting consistent with their approach. Brand consistency is extremely important, and a pillar of any solid brand strategy.
There have been studies that show brands who are consistent can experience a 23% increase in their revenue, on average. That’s a pretty crazy stat, isn’t it? How would it make you feel to see your revenue increased by 23%? It’d probably feel pretty good, right?
Think about this for your own business. Ask yourself the following:
- What do I estimate my revenue to be over the next 12 months?
- Multiply that number by 0.23.
- That’s how much money you’re throwing away each year by not implementing a brand strategy and maintaining a consistent brand.
So for example, a business making $100,000 annually will lose $23,000 per year by not having an effective and consistent brand strategy in place.
There’s a Better Option
The news is in. You need a brand strategy for your business. If your business doesn’t have one or the one you have is ineffective, get in touch with us.
We’ve worked with many very sharp, forward-thinking owners and entrepreneurs from a variety of industries; guiding them through our 4-step brand development process called, BrandGPS™.
Over the course of 4-6 weeks, we help you establish a solid brand strategy for your business; helping bring alignment to your business goals and marketing efforts. It gives you the right look to attract more ideal customers and ensures that your brand is sending the right message.
What this provides for a company like yours is a clear and consistent connection with people, and quite frankly this often means an increase in your profits. It comes as no surprise to us that many of the business owners we’ve partnered with have expressed that BrandGPS™ is the best investment they’ve made for their business.
Partner at Longitude°
Jeremy is a Partner at Longitude°. He’s also the author of “Future Hospitality”, a book focused on how branding can create more impactful guest experiences. Additionally, he’s an honored member of the Boutique & Lifestyle Leaders Association (BLLA) Education Committee and has spoken at industry events and associations including AAHOA, Global Hospitality Summit, Hospitality Talks, and more.