You can’t afford not to read this month’s blog. We look at branding and the evidence that says a strong brand can grow your market share by 2-3 times and increase both your revenue and the value of your business by more than 30%!
Build your brand and your bottom line
Shakespear once asked whether a rose by any other name would smell as sweet? I hate to break it to the Bard (who thought it would), but if the alternate name was fart flower, then I just don’t think we’d be lining up to take a sniff or sending them to our special someones as a sign of our endless love and devotion.
The reason a rose by any other name wouldn’t smell as sweet all comes down to branding. Your brand is best described as the totality of the experience your customers have with you. It starts with a strong visual identity — a great logo, memorable colour ways and an overall design aesthetic that speaks to who you are and connects with your audience. But it’s also the way you interact with people — what you say, how you say it and the way you leave them feeling.
Developing your brand is an investment — but one that can pay big dividends. Check out some of the research.
A strong brand can significantly increase revenue (by as much as 32%)
- A McKinsey study showed companies investing in design and branding saw 32% higher revenue growth compared to those who didn’t.
- Forbes magazine reported that a study by Lucid Press (you’ll need to register to read it) found consistent brand presentation increases revenue by up to 23%.
- The Harvard Business Review reportedwell-defined brand strategies can increase revenue between 10-20%.
A strong brand can increase sales and market share (by a factor of 2-3 x)
- A survey by Edelman found that 81% of (US) consumers say they need to trust a brand to buy from it.
- 77% of consumers buy from brands that share their values according to this global study by Havas Group.
- Business Insider says companies with clear brand positioning can see a 2-3 times increase in market share.
A strong brand increases the amount people are willing to pay
- Marigold’s 2024 State of Loyalty Report showed 63% of people say they are willing to pay more for a brand they’re loyal to.
- Kanter research says strong brands can command a 13% price premium over weaker competitors.
A strong brand increases market value and returns (by more than 30%)
- The Economist says Brand accounts for more than 30% of the stock market value of companies in the S&P 500 index
- And that brands with strong reputations generate 31% more return to shareholders than the MSCI World average.
A strong brand can also
Improve customer loyalty, retention and lifetime value
and
Lower marketing, advertising and customer acquisition costs (because people are more likely to think of you, remember you and judge you favourably)
Since there’s overwhelming evidence that a strong brand brings big returns — the next question is, how do you create one? Here’s what the research says:
- A memorable logo can increase brand recognition by up to 80% (Forbes, 2023).
- Tailoring your brand to your audience can increase marketing effectiveness by up to 60% (Nielsen, 2023).
- Using a signature colour can increase brand recognition by 80% (Reboot, 2018).
- Consistent and clear messaging can improve brand perception by 70% (AdWeek, 2023).
- Invest in design since research shows design-driven companies outperform the S&P Index by 219% over ten years.
tgm has been helping our clients develop beautiful, effective brands for more than 30 years — and we’d love the opportunity to talk to you about yours. During April we are offering cost and obligation FREE brand audits so you can understand how your brand is performing (and what we could do together to make it even more memorable).
To book in for a FREE brand audit, send me an email (andrea@tgmcreative.co.nz) or give me a bell on 027 477 6912 — after all, it’s time the world discovered you.
