Your brand increases its value by adding a symbolic dimension to it.
Consumers aren’t buying products, they’re buying stories. Once they buy into a point of view, a set of values, and a lifestyle, consumers are less likely to treat a product as an interchangeable commodity. The more meaning they attribute to your brand the more assured their loyalty.
Your brand does not stand alone. Your brand is a vehicle to expand the size of the addressable market. By default, your brand does not belong to you. It belongs to culture.
When your brand builds awareness beyond the target audience, it hopefully propels itself into culture and thereby increases its chance to be part of the consumers’ initial consideration set.
Through your brand promise and brand values, you can reach customers who ordinarily wouldn’t consider your products.
Your brand is directly correlated with financial performance. Companies that have a clear brand purpose achieve double brand-value growth than companies that are focused purely on profit generation.
Brand equity protects product price as customers are not waiting for discounts and sales to buy a product. It also protects market share by creating a clear differentiation versus the competition.
Turning your company into a brand improves the odds of success while simultaneously increasing overall value. How much value do brands generate?
Brands achieve 67 percent above-average organic revenue growth and 70 percent above average total return to shareholders.