Economic Benefits of a Strong Brand
Part of the Branding For Dummies Cheat Sheet
A good brand not only helps people identify your organization, it increases its value. When your brand is a strong presence in the marketplace, you reap a range of economic benefits, including the following:
Premium pricing: Consumers pay more for branded items that they believe have higher value and lower risk than lesser-known alternatives.
Lower cost of sales: Consumers of valued brands make repeat and frequent purchases. As a result, customer-acquisition costs are amortized over a long-term client relationship.
Lower cost of promotion: Consumers of valued brands become ambassadors who spread positive word-of-mouth at no cost to the brand.
Higher market share: Valued brands acquire loyal customers who recruit more customers to the brand, increasing the brand’s share of market while reducing customer-development costs and building immunity to competitive attacks.
Lower employee turnover: Great brands attract passionate employees, who pass their enthusiasm to satisfied consumers, who in turn make employees’ jobs more enjoyable, reducing employee turnover as a result.
Higher stature: Valued brands enjoy a high level of awareness and esteem in the minds of consumers, industry leaders, community leaders, news editors, and financial analysts and investors, which leads to yet higher brand preference and marketplace prominence.