Welcome back to White Board Wednesday. Today, we’re talking about branding, why it’s important, and why it’s not and why 99 percent of business owners that I talk to, just don’t get it.
So first thing we’re gonna talk about is what is branding.
A lot of people say it’s the voice of the business, which is pretty true. It’s how you convey yourself to separate entities, your current customers, your prospective customers, your current employees and yourself. So the first thing you need to talk about is: Who are you?. So when when you develop your brand you have to put into consideration who you are or who you want to be, who you don’t want to be, how you want to act ,what you do, and how you do it. This is all part of the culture all part of the brand.
So when you approach people for the first time they get a glimpse of exactly who what and how you work and how you do things. That’s the biggest part about branding. Most people know that.
One of the other things I want to talk about that a lot of people don’t know is actually the click through rate percentage.
When people identify and work with your brand there’s usually not a demand generation. So just because you know about Nike doesn’t mean you’re ready to buy shoes every time you see a Nike ad. It just increases the likelihood that you’ll purchase from Nike or that you interact with Nike because you’re where the brand and you know what they do and how they do it. So that’s one of the largest factors is that demand is actually not generated from branding, which means if you wanted to generate demand you have to think of doing things differently. So social media just to get branding completed doesn’t drive demand generation. It doesn’t necessarily mean someone’s going to go buy from you. Super super important! All it does is increase the likelihood that someone would purchase from you versus your competitor if they like you.
I have a friend named Angie. She just got her business to $1,000,000 this year and she doesn’t have a logo she doesn’t have a brand like voice certain major anything like that she doesn’t even have a company name. She made a $1,000,000 without any branding at all. So that’s one side of the spectrum. The other suspect would be something like 90 year Tiffany, which everyone knows as they’re omnipresent. They don’t necessarily have to blast ads all the time you just know them and their great candidates. So what makes it so that you can or and that you would be more willing to pay extra for Tiffany item rather than someone from another dealer, or you would rather pay more for Nike products than some other lower end products? It’s strictly because of brand that was built, not that Angie can’t charge a high amount of money or a good amount of money for her services, it’s just when you increase the brand value you also get the added benefits of increasing the cost, because people then know you and say that although they have quality products or they have whatever your brand is set out to do, they have this and they’re more willing to pay for it.
So bottom line is, your brand should only be used to increase value increase your percents. It does not increase your demand it does not make your market cap higher. So guys that 99 percent of people that get that incorrect because they think that they’re getting more demand from branding it’s actually not true we always see it increases percentage.
Thank you for sticking around for another White Board Wednesday. We will see you next week!