Branding isn’t just a buzzword anymore—having a solid brand is a necessity. Why does it matter more than ever? Because customers expect more…and they have pretty high expectations these days. Exceed, or at least meet them, and you can thrive in today’s marketplace. Ignore what you think is just the latest marketing hype and your business can wind up left in the dust.

Why brands must go beyond simply existing

Businesses used to take the mindset that if they existed, customers would buy into what they had to offer. But the game has changed, and it’s not just because of choosey, consumer-conscious customers. Yes, modern consumers want to choose brands that make contributions to society, display sustainability, offer an added value, and deliver an experience instead of solely a product or service. This is probably why the Toms shoe concept has taken off (and Sketchers has created a similar line)—because the whole premise of the brand is to give back…and consumers like knowing the shoes they wear are making strides far, far away.

In addition to customer expectations, the importance of brand value has increased tremendously over the past few decades. Brands are business tools that have authority over pricing power, market share and expansion—Apple is a glowing example because it dictates market trends, and doesn’t just produce items. (In fact, Millward Brown Optimor guesstimates that intangible aspects of brands account for more than 30% of the market capitalization of S&P 500 companies.) People want Apple just for the look and aesthetic, not to mention the easy-to-use interface, innovative apps and ability to easily sync products. Now, every brand is not going to achieve Apple-level branding success, but it’s a good company look up to.

Another reason why organizations must pay attention to their brands is because their grasp on traditional competitive advantages is weakening. Forrester calls our modern day the age of the customer, so in a way it goes back to consumer demands. In this market, buyers have more power to choose. So a competitor that quickly one-ups another may earn a customer’s brand loyalty more definitively. That’s why you see a constant struggle between Apple and Microsoft; the Windows 8 platform and the Windows phone is a way to keep up with the ease-of-use that consumers love so much about Apple interfaces.

According to data gathered by Oxford-Metrica, 83% of companies will face a crisis that will negatively affect their share price between 20 percent and 30 percent over the next five years. So even if you are a strong brand, you could still face a major interruption that your brand will have to cope with. As such, brands need to come up with new ways to stand out and offer a competitive edge that can’t as easily be eroded.

Four steps to a knockout brand

If you’ve taken a lesson from some of the most successful brands, it’s relatively simple to see how they have excelled. With that, here are four tips to make sure that your brand is equipped to thrive in today’s marketplace.

  • Construct your brand’s competitive advantage. Marketers need to set a vision for the entire organization that emphasizes why the brand (not just the offering) is vital. Companies need to learn how to position a business as a financial, operational and strategic asset. What do you want the brand to stand for? Why should consumers choose your brand—and stick with it—over a rival brand? Take a look at what the world’s best brands are doing. Think about how you connect with their brand…and why.
  • Revamp the organization around the brand experience. The entire corporate culture has to change in order to emulate what the brand stands for. Does your brand inspire others? Inspire your workforce. Is it about integrity? Match that in your office and business best practices.
  • Empower members to guide the brand. In addition to enlisting, educating and motivating your team, you also have to select the right agency partners that grasp what your brand stands for and understand how to make your goals a reality. Engaging customers and listening to their opinions is also a good way to appeal to consumers that want to be heard out. After all, 80% of consumers are influenced by what they hear about your brand online, according to BrandManagement.com. Pollara reported that 80% of adults are “very” or “somewhat” more likely to think about purchasing products and services that their friends, family and authentic online consumers suggest procuring. Your brand has to have ambassadors, and it must connect with its customers.
    • Monitor the brand’s health. It takes constant assessment to see if what you’re doing is working, and keep tabs on competitors. Integrate benchmarking tools and metrics to evaluate the effect of your brand. We’re sure Microsoft will be keeping tabs to see how it does with Windows 8 (one can only hope it is better than Vista, right?)

 

The marketplace continues to become more competitive, so companies that pay attention to not only what they produce or offer—but also how others perceive and connect with them—are going to be the brands that consumers stick with. Does yours fall into that category?