Brand strength is a value provided by a company. A brand can keep it high if it manages to build a positive price perception, shares the same values as customers, and offers the best quality on the market. This term is often related to brand equity.
Why is brand strength important for every business?
A brand is not defined by its owners. This term is much broader, and it entails clients' perception of a company, which has a significant impact on the entire business. Let's take a closer look at the characteristics of a strong brand.
A strong brand = a well-recognized brand.
You should build brand awareness if you want the clients to recall your business when thinking of a particular product. It will help you enhance customer acquisition and create an emotional connection with your audience. Follow the tips to increase your brand awareness.
People trust brands with a high level of credibility. According to statistical data collected by HubSpot, 90% of people follow their friends' recommendations when choosing a brand to buy from, and 70% of buyers look for online reviews of other clients before making a choice. This means that strong brands can create a monopoly on the market, ousting their competitors naturally.
As a result, strong brands can generate high revenue due to their customers' low price sensitivity. New brands encourage people to buy from them, offering unique features, lower prices, or high-quality customer support, while well-known brands can afford to charge more even for products that have analogs on the market. In this case, people pay for the emotions they feel buying this product. Besides, credibility, reputation, and an army of loyal customers allow high-market share companies to launch entirely new products more successfully. This marketing practice is called umbrella branding or family branding.
Strong brands have an enormous influence on the market. Firstly, they determine the direction and orientation for all companies of the same niche on the market. Each brand aligns with the most successful companies when entering the market, developing a strategy according to the experience provided by top companies. That's why well-known brands are trend-setters.
Secondly, brand strength influences marketing partnerships. Each company wants to collaborate with the best ally. Thus, such brands attract more investors and manage to produce killer products in collaboration.
Thirdly, strong brands hire the most experienced specialists and talented enthusiasts. The latter are encouraged to share fresh and innovative ideas while top-notch managers put them into life.
Now when you know a lot about creating a strong brand, you should know how to measure the performance of your strategies.
How to measure brand strength
If you want to make sure you move in the right direction, you should regularly monitor the effectiveness of your strategy. Since brand strength is not a standalone metric, it comprises reaching several goals. So, we'll share some important KPIs each brand should track.
- Brand awareness. You can measure this indicator using several forms depending on your strategy and techniques chosen. These forms include conducting surveys, monitoring your site traffic from branded keywords, tracking your brand mentions and customers' reviews on social media.
- Sales performance. To assess your financial growth, keep track of your sales volume, sustainable growth rate, average transaction value, and customer lifetime value.
- Brand preference and brand switching. These concepts belong to brand marketing. Brand preference shows whether your clients choose your brand among competitors. The second one allows you to monitor clients who switch brands and find out the reasons with the help of surveys and individual consulting.
- Competition. It's crucial to have a clear picture of how your product performs in a highly competitive market. You need to know whether you can sustain competition in terms of pricing, quality, and product range. Monitor your customer acquisition rate, your market share, revenue from all the marketing channels you use. For example, you can send promotional email campaigns to your clients for free and increase sales and brand recognition.
Now that you're aware of the benefits of strong brands, it's time to see some tips on how to become such a brand.
Tips to Improve Your Brand Strength
In this section, we'll share some effective techniques that will help you build a strong brand.
- Analyze your target audience. Your brand can't improve and become the best choice on the market if you know nothing about your potential customers. Define your brand's target audience: gender, age, location, occupation, problems, needs, and preferences. This tactic will help you create your buyer persona and craft your products to meet your customers' needs.
- Define your tone of voice. Your tone of voice helps your audience perceive your core values and build the personality of your brand in their minds. It means the way you communicate your company's message to the clients. Establishing your tone of voice implies using consistent language across all communication channels. To define it correctly, you need to analyze your audience, their needs, values, and preferences.
- Increase retention and customer loyalty. With a well-thought customer retention strategy, companies can get higher revenue, save money on acquiring new leads, collect data about their clients to create relevant offers. Loyal clients are the most valuable for every business since they help companies grow. Such clients boost a brand's profits and are a source of word of mouth. Therefore, build long-lasting relationships with your customers, offer a loyalty program, segment your base, and collect clients' feedback to optimize your strategy.
- Participate in events. You can hold and attend events or sponsor your partners' events. Event marketing allows companies to communicate with their audience offline, promote their products and services, educate prospects, and boost brand awareness.
- Use multiple communication channels. The more platforms you have in your content marketing strategy, the more prospects you can acquire. Your clients can be anywhere, and you should be ready to adjust. Besides, each channel provides unique business possibilities. For example, Instagram allows you to showcase your products, and Facebook is perfect for telling your brand story and collecting customer feedback. You can also use email marketing to increase sales or implement chatbots in messengers to help your customers and collect necessary data about them.
With these tips in mind and SendPulse marketing instruments at hand, you can create a killer strategy to build a strong brand.
- This article provides insights into four factors that help build a strong brand.
- This article offers five tips and tricks to improve your brand strength and equity.
- This article covers a brand strength index.
Last Updated: 11.10.2021