If you’re not an astute investor then, like me, you probably wish you had one in the family. Some older brother or distant cousin who knew where you should park your dollars to double or triple it every year, guaranteed. That’s the kind of return on investment (ROI) we read about when investors see which way the wind is blowing and go all in.
In reality, if that cousin or older brother really has your best interests at heart, they’ll tell you that investment is a long game. If you want to double or triple up, then invest carefully, wisely and – most of all – consistently. Over time, the ROI will come, and it could be substantial.
Just like investing, branding is a long game. Sure, one in a thousand brands will hit it out of the park their first time at bat and drive away with truckloads of money.
But that’s not your game. You and I are among thousands of small- and medium-sized businesses that need steady growth, a good income, a tropical vacation now and then and something to sell or pass on to the kids at the end of it all.
Branding is the investment that can get you there. Why?
Your brand is what people think of you and branding is getting them to think the right things about you. Do that and you’ll turn your brand into the ultimate ROI gift: one that keeps on giving.
Effective branding can be a significant investment for small businesses. So it makes sense to ask what the return is. Branding offers strong ROI in both tangible and intangible forms. These can’t always be measured by traditional metrics like week-over-week sales, profits, or number of referrals. While companies can see some immediate impact from a brand launch, branding is not a one-off activity designed to generate overnight results.
Branding is a marathon, not a sprint. It's less about marketing and more about the on-going activity of your whole company.
It’s everything from how you conduct yourself, how you deliver your product or service and how you relate to your customers in general. That’s what makes branding so difficult to measure.
The best way to understand the ROI of branding is to look at the benefits that a strong brand will give your organization. I've narrowed it down to seven:
1. Increase your reach through Word-of-Mouth
2. Raise brand advocates (who do the work for you)
3. Be able to raise your prices
4. Attract and keep better employees
5. Provide consistent marketing impact at a reduced cost
6. Build equity and leaving you something in the end
7. Produce 39% more ROI than advertising alone
Over the next few weeks, I’ll be talking about how these seven tangible benefits can be incorporated into your own business or organization.
Don’t want to wait for the next post? Dowload our free e-book and start branding your way to ROI success today.