The Hidden ROI of Brand Management: Start Driving Long-Term Growth With Strategic Branding

Are you ready to start driving long-term growth at your company? Sustainable growth doesn’t happen by accident. Every successful business that has stood for decades follows one core principle. Invest in the brand. Strategic branding is a game-changer for organizations that are ready for long-term growth.

The Myth Of Brand Management

However, first, let’s address the elephant in the room: the profession of brand management. There seems to be a misconception in the business world that brand management is a “soft skill,” an aesthetic touchpoint rather than a core driver of tangible returns. If you look at successful business professionals and companies that have weathered decades of market shake-ups, you realize that couldn’t be further from the truth. Lasting success is built on the bedrock of a strong, well-managed brand. That’s why today, we’re taking you behind the scenes to examine the hidden ROI of Brand Management that giants like Apple, Disney, Lego, The Coca-Cola Company, and more have benefited from.

The Loyalty Multiplier – Transforming Customers Into Fans

Customer advocacy is one of the most significant yet hardest to measure returns from a well-managed brand. It’s no secret that word-of-mouth marketing is one of the most effective forms of marketing and also one of the hardest to manufacture. The secret to a customer who raves about your business comes from the loyalty and trust you’ve cultivated with your brand. A customer who doesn’t feel emotionally connected to your brand or doesn’t trust the brand or its promises is a customer who won’t advocate on your behalf. They’re the same customer who will turn to your competition if the price is right. If you want to command a higher price in the market, while retaining and growing returning customers, and securing new customers through the testimonials of your current shoppers, then a strong brand is a MUST.  

Take a look at Apple – they cost considerably more than every phone on the market. However, that doesn’t keep their customers from getting the latest iPhone and telling all of their friends about it. Apple customers have connected with the brand and have gone from simple buyers to advocates who will stand by the watercooler in their offices, showing off their new iPhone to every coworker who walks by.

The Pricing Power – Commanding Premium Value

With price-conscious consumers, achieving healthy profit margins can be a constant battle. It’s too easy for customers to compare your prices to those of your competition without leaving their couch, thanks to a handy cell phone or laptop. The last thing you want to do is get locked into a lower price war with the competition. You can run only so many sales before you bankrupt yourself out of the market. This is where the strong pricing power of a capable brand comes into play. When customers perceive a brand as superior, reliable, or embodying values they align with or emotionally connect to, they’re often willing to pay a premium. This trust they’ve built with the brand often makes the choice for the higher-cost product with the brand in question a “no-brainer.” They know the quality they can expect and believe in why they’re purchasing from that business.  

A great example of this pricing power in action is for Rolex. Can you get a $10 watch that works just fine? Of course! Is it the same as a $59,000 Rolex? Most customers would answer a resounding NO. People believe and trust the quality of a Rolex watch. Many of them would roll their eyes at the idea of comparing the quality and reliability of a Rolex watch to a $10 watch. Both tell time and communicate a completely different story to the customer through their branding.

The Resilience Shield – Weathering Volatile Market Storms

As you know, the business landscape is rarely smooth and easy sailing. Economic downturns, shifting consumer preferences, and unexpected crises can sink even the most robust businesses. The companies that stay afloat are supported by their brand equity. It gives them a crucial advantage – market resilience. The trust and loyalty we’ve discussed earlier, which are built from a well-managed brand, act as a shield from market upheaval during challenging times. In the face of uncertainty, people are likelier to stick to brands they know and trust. This loyalty provides a stable foundation, allowing the brand to weather market storms that might sink their less-branded counterparts.  

Let’s take a look at Patagonia, founded in 1973; this company went through the 2008 financial crisis in the United States and experienced its “two best years ever,” with sales surging and profits tripling between 2008 and 2014, according to Forbes. Patagonia was an oddity; it was not a necessity during this time of crisis, and yet, sales went through the roof. Most Patagonia customers would tell you that their brand is one of a kind. What business wouldn’t want to walk out of a financial crisis with doubled or tripled sales? For market volatility, a strong brand is the best-kept secret for success.

Get The Competitive Edge – Invest In Your Brand

The hidden ROI of brand management isn’t a secret for successful businesses at the forefront of business strategy. They understand that crafting a strong brand isn’t just a “nice thing to have,” but foundational in today's highly competitive and ever-changing business market. Brand management is essential to drive long-term growth.  

As a capable and smart professional, you need to stay ahead of the curve. Mastering the art of brand management isn’t just a desirable skill – it’s a competitive edge. Knowing how to manage a brand translates into tangible business success. Get the skills you need to make a big impact with your brand in our latest Certified Brand Manager™ course. You’ll learn everything from brand planning to brand marketing to assessing brand performance and growing and maintaining brand equity. Start investing in your brand and business growth today!