Ah yes, brand building. This is something you must never forget to continue doing in the long term. You see, brand building is something that must be constantly nurtured so that it can grow and mature. Building your brand is going to take some time, but it’s worth it because it’ll pay off in the long run. So let’s talk about why branding is more important than sales in the long term, shall we?
The drive for evidence-based KPIs pushed marketers towards activity with ROI that’s easier to demonstrate (short-term sales or digital click-through behaviors) as opposed to activity with potentially the greatest ROI (longer term growth and sustainable profitability).
What is branding and why is it more important than sales?
What is branding? Branding is what you tell people about your product, service, or company that helps them develop a relationship and loyalty with your business.
Think about your customer as an ally as opposed to a potential sale.
Today’s consumers want to know who they are doing business with. Consumers want to trust the brands they deal with and want to feel a part of a community, culture, or philosophy. As consumers, we don’t just want a company to make great products, we want them to engage us in their vision and share our beliefs.
The way companies tell us about themselves, their products, and their vision for the future reveals a lot about how much importance they place on building relationships with their customers and prospects (That’s why we recommend hiring a digital agency). But sometimes we have trouble communicating what makes our brand special in clear, compelling ways that connect emotionally with our target audience.
Brand leaders know that effective branding means developing an identity that resonates deeply with their target audience. A brand identity connects emotionally with customers so they choose to do business with you instead of your competitors. Branding goes beyond making an effective ad or a pretty logo. It is outside-in: it starts by understanding consumer needs and behaviors and then builds an image that reflects those insights.
Long term growth and sustainable profitability
Branding doesn’t always happen quickly, but it’s worth putting in the effort and taking the time.
If you are thinking, “how is branding more important than sales,” perhaps you need to understand the difference between short-term and long-term business goals.
Sales today can account for a huge percentage of your profits. But if you’re spending all your time trying to get new customers, then how are you going to get a reputation that will keep those customers coming back?
You can only sell something once. If a customer buys from you today, how many more times will they buy from you? A lot of companies spend all their energy on getting new customers, but what happens when those customers don’t come back?
You need to develop a reputation for quality and value if you want your customers to keep coming back. This is what branding is all about. If you have a great product that everyone knows about, it will be easier to find customers in the future. So make sure that every customer who comes through the door has an experience so good that they’ll tell all their friends about it. You may not be able to do anything about past customers, but as long as they had a great experience they’re potential brand ambassadors in the future.
