Invest In Helping Your Customers Like You
It has been announced that branding is dead, and perhaps has been for some time. Wired claimed it in 2004. Fast Company agreed to it in 2008. A bearded creative director confirmed it just this year.
The apparent causes of its demise are many. Some attribute branding’s passing to a prolonged bout with transparency, often brought on by unprotected contact with social media. Others point to the more vague “digital age” as branding’s ultimate undoing, or SEO, or packaging (as though packaging were somehow totally separate from branding), or even the supposed education of the consumer class.
It’s that last one that I find particularly hard to stomach. You only need to spend two minutes reading YouTube comments to realize we consumers haven’t come too far.
But every consumer, even those commenting on YouTube, can recognize that branding is alive and well.
When you look behind the “branding is dead” headlines, you usually find that what the author actually means is that the definition of branding has, or should be, expanded. But you and I both know we’re more likely to read an article titled “Branding Is Dead” than one titled “The Definition of Branding Has or Should Be Expanded Slightly.”
We’re all suckers for a punchy headline.
Branding Is Bigger Than Ever
Branding has grown not just in definition, but in value. Interbrand, a branding agency that manages to maintain 33 offices in 27 countries despite the supposed death of its core offering, recently published its 2014 Best Global Brands report. This report lists the “contribution of the brand to business results.”
It’s the closest we can come to quantifying the value in dollars of a brand, and those values are staggering.
Perennial branding favorite Apple’s brand is valued at $118 billion. Another textbook branding case study, Nike, comes in at a $19.9 billion brand valuation.
If you mention the word “branding” in a classroom at ad school, Apple and Nike are the first two words likely to be shouted back at you, so nobody’s surprised that their brands are thought valuable. But there are also plenty of less recognized branding powers that made Interbrand’s list.
Ever thought about the power of a brand to absorb bodily fluids? Pampers gets swaddled with a $14.1 billion brand value, while Kleenex comes in at $4.6 billion.
Brands are also plenty capable of planting stuff in the ground and moving dirt around, as evidenced by John Deere’s $5.1 billion and Caterpillar’s $6.8 billion brand valuations.
All told, Interbrand’s top 100 global brands this year account for more than 1.4 trillion dollars, which is a lot of money. So much that it starts to lose its meaning. So let’s look at it another way.
As the most valuable company in history, Apple currently has a $483 billion market cap. Interbrand estimates that its brand alone accounts for $118 billion. In essence, Apple’s brand accounts for about a quarter of the company’s value.
Sound Investment Advice
No one has ever accused me of being a financial wizard, but here’s some investment advice I’m confident standing behind: You’re probably not investing enough in your brand. Unless your name’s Tim Cook, you’re not at the helm of Apple, but your brand is probably worth more than you think. Or at least it could be.
Branding is much more than just a logo and a tagline. Branding is anything that influences a customer’s perception of your company. And that’s a lot of things.
When a customer emails your company, how long does it take to get a response? Is that response helpful? What does the response look like? What tone does it take?
When a customer visits your website, how easy is it to find the information they’re looking for? Is your site pleasant to use? Does it look as good on their computer screen? Does it look good on their smartphone?
When a customer reaches out to you on social media, do you respond? Do you have an active presence? Do you have something interesting to say on social media, or is it obvious you just have a profile because someone told you that you should?
Branding isn’t magic. It’s just making sure that when your customers come in contact with your company, they like what they find. And chances are, you’re probably not investing enough in branding.
If you do make that investment, I’ll bet that you’ll not only make your customers happier but also increase your company’s value.
Not bad results from something that’s been the subject of more obituaries than I can count.