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DirectLandings :: Resources :: Articles by Encephalo Associates :: Why Brand
Why Brand? Reasons and Research-Based Answers
Over the last several years, there’s been a resurgence of interest in brand marketing. Companies large and small are embracing branding as a competitive strategy, not just as a visual identity standard. But how is this improving business results in general, and sales in particular? What does brand strategy add to the sales process to make a branding program worth the investment?
In essence, brand strategists widely maintain that branding helps build customer relationships before, and even after, a sales contact, by finding a place in the hearts and minds of prospective customers. When well-crafted, the symbols and messages associated with a brand have lasting effects. For example, customers will find it harder to imagine going anywhere else to meet their needs. They’ll start introducing others to your brand. And optimally, these customers will think about your brand when they think about quality and value - even with price increases.
It also appears that branding fosters the emotional-rational connection that’s so essential in customer decision-making. Studies of brain activity have shown that without emotional processing, even seemingly rational decisions are harder to make [source]. In this way, branding facilitates emotional-rational connections to make closing a sale that much easier.
Branding elements are both visual and conceptual. Visual elements include your logo, colors, fonts, graphics and layout that graphically distinguish you from everyone else. Just as powerful are the conceptual elements that position the brand for the target audience - such as tagline, headlines, labels, copy points, price points, editorial thrust, tone, and endorsements. To achieve a level of differentiation for your brand, these elements should be executed consistently across all marketing channels - advertising, collateral, websites, direct mail, email, public relations, trade shows, etc. How effectively you use visual and conceptual branding elements will have an impact on your business results.
What is the evidence for this, you may be wondering? How confident should you be that an investment in branded communications will produce better business results? While the body of proof is not yet complete, there’s growing evidence of a causal link between branding "best practices" and better business results. Let’s examine some of these results.
- The effective use of branding helps create a more receptive audience for in-person selling.
In a 2003 case study among dealers of York heating, ventilation and air conditioning (HVAC) systems, 95% of York’s participating HVAC dealers reported that corporate brochures with extensive local dealer branding (i.e., logo, photos, and contact information) helped dealers increase local sales. (Retrieved 08/2003 from source.)
- The effective use of branding helps create a more receptive audience for direct response tactics.
In a case study of corporate brand revitalization, a new positioning, redesigned logo, and new tagline improved conversion rates by 58% (from 24% to 38%) for a direct mail charity fundraising organization. (Retrieved 04/2004 from source).
- The effective use of branding helps trigger fewer email unsubscribe requests, thereby fewer broken relationships.
In research conducted by IMT Strategies (2001), brand marketing campaigns drew fewer unsubscribe requests than sales campaigns and lead-generation campaigns (1.0% vs. 3.8% vs. 2.8%). (Retrieved 08/2002 from source.)
- The effective use of branding helps encourage email click-through, thus moving relationships to the next level.
Again, according to IMT Strategies’ 2001 study, emails with branding goals produced higher click-through rates (17.5%) than emails with lead-generation goals (15.3%) or sales goals (15.2%).
- The effective use of branding helps create leads ("soft" conversions) via email.
Email with a branding emphasis produced higher lead conversion (e.g., sign-ups for free newsletters) than email with a sales emphasis alone (6.8% vs. 5.6%) (IMT Strategies, 2001).
- The effective use of branding helps create leads ("soft" conversions) from web traffic.
From Optimost’s library of case studies on registration page (lead) conversions, a reported 20% to 61% increase in leads was achieved by finding the optimal mix of branding elements. Optimost routinely tests the following branding elements: headlines, copy, testimonials, main images, fonts, background colors/designs, submit buttons, form layout, etc. (Retrieved 04/2004 from multiple pages at source.)
- The effective use of branding helps convert more website visits to sales ("hard" conversions).
Creative Good’s analysis of consulting projects in their database revealed that typical conversion rates (both online and offline) increased by 40% to 150% as a result of fine-tuning conceptual and visual branding elements on client webpages (Retrieved 04/2004 from source.)
- The effective use of branding helps increase revenue per website visit.
Creative Good’s database revealed some revenue increases of well over 100% following adjustments to their clients’ conceptual and visual branding elements on webpages.
- The effective use of branding helps increase order volume per website visit.
Creative Good’s consulting project database revealed typical increases in average order size of 15% - 25% as a result of adjusting conceptual and visual branding elements on webpages.
Good branding practices not only make good first impressions. They move leads closer to a sale, and make customers part of the unpaid salesforce. Good branding practices reassure customers that time after time, they’ll experience a brand "just like an old friend" - evolving over time while maintaining an emotional connection. In this way, an effective branding program continues working even after the salesperson moves on to the next appointment.
© 2004. Ruth V. Armstrong, PhD. All Rights Reserved.
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