The Importance of Branding
Everywhere we look we see companies jarring for a sliver of our ever shrinking attention spans. Having a great product is certainly an important piece to the puzzle and likewise a great start. However, in our fast-paced world, no longer does the average consumer take the time to find the best product. People want what they see in their social media feeds. People respect a brand that has an outward facing charism backed up by easy accessibility. Your brand should exude those mannerisms from the moment your logo catches the consumer’s eye. Your webpage should flow from the moment it is clicked to the completion of transaction.
Brand preference is what builds strong cashflow by growing market share. The Marketing Accountability Standards Board (MASB) states that on average branding contributes to 19.5% of enterprise value, and at times as much as 50%.
It is no secret that well recognized brands can charge more than competitors for similar quality products. A study by the Marketing Science Institute found that brand reputation and preference can command 26% premiums on average. This advantage comes with no extra patents, research and development, or talent acquisitions.
Some of these include: Reduced price sensitivity from customer; Increased customer loyalty; Higher visibility blocking out competitors; More RFP and Bid wins.