4 reasons businesses miss out on brand growth
Brand Strategy
The 4 reasons businesses are missing out on growing their brand (and what to do about it)
Rebranding is often treated as a marketing project. It should be treated as a business decision.
After all, your brand is one of the most visible parts of your business, and if it’s not working for you chances are it’s not working for your customers either.
Investing in a strong brand truly gives a return on investment for businesses. Here are the four objections we hear every time, and why none of them holds up.
10-60%
MYTH 1
"It's going to cost too much"
Budget holders often see rebranding as an unwelcome expense rather than an investment. But rebranding has a return on investment. If your marketing isn’t delivering the results you want, it’s often an underlying brand problem. The most successful companies in the world, such as Accenture and GE, invest 10-15% of business value into brand and brand building.
Question to ask yourself: if you invested 5% of your total business value to generate a guaranteed return, how much would that be?
The company that needs a new machine tool, and hasn’t bought it, is already paying for it.
Myth 2
"We don't think there's a problem."
The people who feel the disconnect first are rarely the ones in the boardroom. Marketeers are at the coalface; they see the campaigns not converting, and they hear the comments from clients. The board, a step removed, often genuinely believes the brand is fine. Research is your ammo in this case.
A real example: One brand we worked with believed its name was well-established in its industry. Research showed 70% of their potential audience had never heard of them. Everyone thought the name was terrible.
Here are some ways you can conduct validation research
Audience surveys
Ask your customers directly what they think of you. Often the fastest way to surface a disconnect.
Customer interviews
Deeper, one-to-one conversations that uncover the nuance a survey can’t.
NPS Scores
A simple measure of how likely customers are to recommend you, and how that shifts over time.
Competitor analysis
See how your brand stacks up against others in your space and where you’re blending in.
Social Listening
Monitor what people are saying about you unprompted, in the places you’re not watching.
Third- party reviews
What customers tell others when they think you’re not listening.
MYTH 3
"Put that money into advertising instead."
Advertising is seductive because it can show returns quickly. But advertising on a weak brand is a false economy. Marketing Week tracked 100 brands over a decade, proving that Brand isn’t an alternative to advertising. It’s what makes advertising work. The businesses winning right now built their brands first, then communicated through them.
The chart to the right demonstrates that a strong brand and effective advertising are incredibly effective at driving value growth.
MYTH 4
"We don't have time to rebrand."
Time is a real constraint, and we understand it. But if your brand is a problem, it won’t wait for you to ‘have time’. Push it back six months, and you’ve extended the damage by six months and delayed the return on top of that.
Here’s a guide: on how long a rebrand project takes. ROI from this usually kicks in at the 6-month mark.
Can your business afford another six months of a brand that’s working against your marketing?
Next steps
Four things worth acting on now
01
Understand your audience properly
Don’t rely on assumptions. Get out and ask them — even a simple survey can surface the disconnect your board doesn’t know exists.
02
Build a compelling proposition
Have a credible and compelling proposition that echoes a customer need. Not just a list of services. What are you genuinely best at? Who do you do it for?
03
Make sure your brand stands out
If you look like everyone else in your sector, you lose recall. A distinctive visual and verbal identity is what turns a good proposition into something people remember.
04
Don't get bored and deviate
Take all those points and translate them across all channels. Repetition and consistency build brand equity. Once you land something good, keep going.
Other insights by Vicki
About Vicki Young
Vicki Young (she/her) is Founder and CCO of Nalla. After working for two of the most respected creative agencies within the industry, she set up Nalla as a tribute to her late father, Allan.
A thought-leader in the branding space, Vicki’s insights are regularly featured in publications such as The Times, Creative Review and Transform Magazine.
Related content
Inherited a Brand? How to Evolve It Without Losing Equity
How to talk to the next generation without losing everyone else
How to Write an RFP That Actually Gets You Bold Work
The Riskiest Thing Your Brand Can Do Is Play It Safe
