By Judith M. Guido
One of the most valuable assets that your organization owns is your brand, and yet so few really understand its economic and emotional value.
A brand is not a logo, tagline, product, advertising campaign, marketing program, company name or a spokesperson. While these are certainly key components that help communicate and formulate the brand, they are not the brand.
A brand is a promise to deliver. It is an unspoken covenant, and an expectation to fulfill in the mind of your stakeholders. For example, your brand promise may be to provide your customers with the safest, fastest, most economical and greenest methodology for removing snow and ice. Your stakeholders include your employees, customers, suppliers, investors, media, community and alliances.
A brand is a business asset with a related value, and when nurtured and managed properly, it will yield tremendous sales results and long-term economic benefits for your company.
For those of you who believe that branding is some sort of soft and fuzzy concept or marketing exercise, please re-consider. Branding is a business science, and creating a master brand requires insight into market dynamics (macro and micro) and the minds of your customers.
Here are some compelling facts about branding:
- In down markets, strong brands outperform weak brands by a margin of 7 to 1, and in healthy markets by a 3-to-1 margin.
- Strong brands have an average 96% customer retention rating, and are ranked No. 1 or 2 in revenue in their markets.
- On average, strong brands have 48% higher profits than their competitors and enjoy a 46% market share. Their loyal customer base is their greatest advocate and business developer, providing an average of 3.1 referrals per customer.
You may think this all comes with a hefty price tag and marketing budget—think again. Companies with dominant brands have, on average, 29% lower sales and marketing costs (Hint: It has a lot to do with their customer selling for them). If you are still skeptical, conduct some objective local research and scrutinize the winning brands in your area, and assess their position in your market. More than likely, you’ll discover that they are the market leaders with high name awareness, a solid reputation and a healthy bottom line.
Judith M. Guido is a principal in Guido & Associates and a business management consultant who has been helping snow and green companies grow successfully for more than 20 years. Contact her at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Visit her on LinkedIn, Facebook and Twitter or SIMA’s business blog on GoPlow.com.
