Book a Call
Brand Investment
Customer Loyalty
Brand Identity
Sustainable Growth
ROI
ARTICLE #130
Brand investment: Why is investing in branding worth the ROI?
Brand Investment
Customer Loyalty
Brand Identity
Sustainable Growth
ROI
Written by:
3 min read
Updated on: October 28, 2024
Toni Hukkanen
Head of Design
Creative Direction, Brand Direction
Toni Hukkanen
Head of Design
Creative Direction, Brand Direction
Toni Hukkanen
Head of Design
Creative Direction, Brand Direction
From well-developed to new micro-brands, each spends time and money building its identity to grow and stay relevant. This shows that branding is not just a cost but an important factor in long-term success.
A brand is more than just a name tag or visual design. It’s about building trust, relationships, and values with customers. Strong branding brings real benefits, like loyal customers, a larger market share, and lower costs. It also keeps up with new technologies and changes in the market. In this blog, we will discuss how branding investment leads to sustainable growth and increases ROI.
From well-developed to new micro-brands, each spends time and money building its identity to grow and stay relevant. This shows that branding is not just a cost but an important factor in long-term success.
A brand is more than just a name tag or visual design. It’s about building trust, relationships, and values with customers. Strong branding brings real benefits, like loyal customers, a larger market share, and lower costs. It also keeps up with new technologies and changes in the market. In this blog, we will discuss how branding investment leads to sustainable growth and increases ROI.
From well-developed to new micro-brands, each spends time and money building its identity to grow and stay relevant. This shows that branding is not just a cost but an important factor in long-term success.
A brand is more than just a name tag or visual design. It’s about building trust, relationships, and values with customers. Strong branding brings real benefits, like loyal customers, a larger market share, and lower costs. It also keeps up with new technologies and changes in the market. In this blog, we will discuss how branding investment leads to sustainable growth and increases ROI.
Trends that influence brand investment
Trends that influence brand investment
Trends that influence brand investment
As branding evolves, companies are rethinking how they engage with customers. Two major trends driving this shift are the use of AI and the focus on interactive storytelling. These innovations help brands create meaningful connections with customers, build deeper engagement, and develop long-term loyalty over time.
Brand success with AI and personalisation
The way businesses communicate with customers is changing quickly with the rise of artificial intelligence. Now, 71% of customers expect personalised interactions. Even small gestures, like a customised message, are becoming essential to meet customer expectations. AI-powered chatbots and predictive tools allow brands to improve customer engagement and keep their customers coming back.
For example, tech companies use predictive models to personalise customer journeys, helping them build stronger relationships, reduce customer loss, and improve satisfaction.
Interactive content and visual storytelling
Interactive content has become popular in recent years as a form of visual storytelling. Brands use AR campaigns to establish emotional connections with consumers, making it their new favourite tool. These experiences bridge the gap between the digital and physical worlds and keep your brand at the top of your customer's minds.
For example, Nike encourages creativity and commerce through their AR platform, which enables consumers to design and purchase virtual sneakers.
As branding evolves, companies are rethinking how they engage with customers. Two major trends driving this shift are the use of AI and the focus on interactive storytelling. These innovations help brands create meaningful connections with customers, build deeper engagement, and develop long-term loyalty over time.
Brand success with AI and personalisation
The way businesses communicate with customers is changing quickly with the rise of artificial intelligence. Now, 71% of customers expect personalised interactions. Even small gestures, like a customised message, are becoming essential to meet customer expectations. AI-powered chatbots and predictive tools allow brands to improve customer engagement and keep their customers coming back.
For example, tech companies use predictive models to personalise customer journeys, helping them build stronger relationships, reduce customer loss, and improve satisfaction.
Interactive content and visual storytelling
Interactive content has become popular in recent years as a form of visual storytelling. Brands use AR campaigns to establish emotional connections with consumers, making it their new favourite tool. These experiences bridge the gap between the digital and physical worlds and keep your brand at the top of your customer's minds.
For example, Nike encourages creativity and commerce through their AR platform, which enables consumers to design and purchase virtual sneakers.
As branding evolves, companies are rethinking how they engage with customers. Two major trends driving this shift are the use of AI and the focus on interactive storytelling. These innovations help brands create meaningful connections with customers, build deeper engagement, and develop long-term loyalty over time.
Brand success with AI and personalisation
The way businesses communicate with customers is changing quickly with the rise of artificial intelligence. Now, 71% of customers expect personalised interactions. Even small gestures, like a customised message, are becoming essential to meet customer expectations. AI-powered chatbots and predictive tools allow brands to improve customer engagement and keep their customers coming back.
For example, tech companies use predictive models to personalise customer journeys, helping them build stronger relationships, reduce customer loss, and improve satisfaction.
Interactive content and visual storytelling
Interactive content has become popular in recent years as a form of visual storytelling. Brands use AR campaigns to establish emotional connections with consumers, making it their new favourite tool. These experiences bridge the gap between the digital and physical worlds and keep your brand at the top of your customer's minds.
For example, Nike encourages creativity and commerce through their AR platform, which enables consumers to design and purchase virtual sneakers.
Why investing in your brand delivers ROI
Businesses that focus on branding can see noticeable differences in their ROI as they benefit from their products' strong brand identities. These identities, in turn, provide financial and competitive rewards over time. A successful brand strategy ensures steady profit margins, lower costs, and long-term sustainability.
Commanding premium prices
A powerful brand can justify its reasons for premium pricing, especially when it aligns with consumer values. 57% of consumers are willing to pay more for sustainable products, even during inflation. A trusted brand allows customers to perceive these higher prices as the price of the value they are getting.
Lower customer acquisition costs
It builds loyal customers when sustainability and purpose are successfully integrated into a brand message. This helps reduce the cost of advertising and attracts organic referrals. According to Kantar, purpose-led brands build trust and community, significantly reducing customer acquisition costs.
Sustainable innovation as a competitive advantage
Brands committed to innovation and sustainability outperform others, achieving three times higher growth. Adopting innovative techniques like eco-friendly packaging or socially responsible campaigns that align with a company's purpose makes it relevant today and keeps it ahead of its competition. This also future-proofs the businesses and ensures they remain productive.
Branding allows businesses to differentiate themselves in a competitive market, balancing short-term profitability with long-term consumer relationships.
Businesses that focus on branding can see noticeable differences in their ROI as they benefit from their products' strong brand identities. These identities, in turn, provide financial and competitive rewards over time. A successful brand strategy ensures steady profit margins, lower costs, and long-term sustainability.
Commanding premium prices
A powerful brand can justify its reasons for premium pricing, especially when it aligns with consumer values. 57% of consumers are willing to pay more for sustainable products, even during inflation. A trusted brand allows customers to perceive these higher prices as the price of the value they are getting.
Lower customer acquisition costs
It builds loyal customers when sustainability and purpose are successfully integrated into a brand message. This helps reduce the cost of advertising and attracts organic referrals. According to Kantar, purpose-led brands build trust and community, significantly reducing customer acquisition costs.
Sustainable innovation as a competitive advantage
Brands committed to innovation and sustainability outperform others, achieving three times higher growth. Adopting innovative techniques like eco-friendly packaging or socially responsible campaigns that align with a company's purpose makes it relevant today and keeps it ahead of its competition. This also future-proofs the businesses and ensures they remain productive.
Branding allows businesses to differentiate themselves in a competitive market, balancing short-term profitability with long-term consumer relationships.
Businesses that focus on branding can see noticeable differences in their ROI as they benefit from their products' strong brand identities. These identities, in turn, provide financial and competitive rewards over time. A successful brand strategy ensures steady profit margins, lower costs, and long-term sustainability.
Commanding premium prices
A powerful brand can justify its reasons for premium pricing, especially when it aligns with consumer values. 57% of consumers are willing to pay more for sustainable products, even during inflation. A trusted brand allows customers to perceive these higher prices as the price of the value they are getting.
Lower customer acquisition costs
It builds loyal customers when sustainability and purpose are successfully integrated into a brand message. This helps reduce the cost of advertising and attracts organic referrals. According to Kantar, purpose-led brands build trust and community, significantly reducing customer acquisition costs.
Sustainable innovation as a competitive advantage
Brands committed to innovation and sustainability outperform others, achieving three times higher growth. Adopting innovative techniques like eco-friendly packaging or socially responsible campaigns that align with a company's purpose makes it relevant today and keeps it ahead of its competition. This also future-proofs the businesses and ensures they remain productive.
Branding allows businesses to differentiate themselves in a competitive market, balancing short-term profitability with long-term consumer relationships.
Metrics for measuring brand ROI
Tracking branding investment ROI is crucial to determine whether branding strategies produce worthwhile results. Nowadays, businesses focus on data-driven insights rather than assessing their brand successes based on likes and followers.
Customer loyalty and retention
Almost every company tracks customer retention to measure its branding success. Monitoring retention rates and repeat purchases helps businesses understand customer loyalty, reduce churn rates (the percentage of consumers annually cancelling a subscription or discontinuing services), and increase customers’ lifetime value.
Revenue growth and market share
Companies risk losing customers to competitors. Brands embracing omnichannel strategies will likely enjoy 9.5% annual revenue growth and outperform the companies with weaker strategies. This engagement and retention of customers will ultimately lead to increased growth.
Social media and digital impact
Short-form video content has become crucial for success on e-commerce platforms like Instagram and TikTok. This form of advertising allows companies to target campaigns where their audience is most active, achieving an ROI far beyond the current 40% threshold of digital ads (HubSpot). Metrics like view counts, click-through rates, and conversions demonstrate the value of social media activity.
Businesses can use this data to adjust their branding strategies to focus on long-term growth and profitability.
Tracking branding investment ROI is crucial to determine whether branding strategies produce worthwhile results. Nowadays, businesses focus on data-driven insights rather than assessing their brand successes based on likes and followers.
Customer loyalty and retention
Almost every company tracks customer retention to measure its branding success. Monitoring retention rates and repeat purchases helps businesses understand customer loyalty, reduce churn rates (the percentage of consumers annually cancelling a subscription or discontinuing services), and increase customers’ lifetime value.
Revenue growth and market share
Companies risk losing customers to competitors. Brands embracing omnichannel strategies will likely enjoy 9.5% annual revenue growth and outperform the companies with weaker strategies. This engagement and retention of customers will ultimately lead to increased growth.
Social media and digital impact
Short-form video content has become crucial for success on e-commerce platforms like Instagram and TikTok. This form of advertising allows companies to target campaigns where their audience is most active, achieving an ROI far beyond the current 40% threshold of digital ads (HubSpot). Metrics like view counts, click-through rates, and conversions demonstrate the value of social media activity.
Businesses can use this data to adjust their branding strategies to focus on long-term growth and profitability.
Tracking branding investment ROI is crucial to determine whether branding strategies produce worthwhile results. Nowadays, businesses focus on data-driven insights rather than assessing their brand successes based on likes and followers.
Customer loyalty and retention
Almost every company tracks customer retention to measure its branding success. Monitoring retention rates and repeat purchases helps businesses understand customer loyalty, reduce churn rates (the percentage of consumers annually cancelling a subscription or discontinuing services), and increase customers’ lifetime value.
Revenue growth and market share
Companies risk losing customers to competitors. Brands embracing omnichannel strategies will likely enjoy 9.5% annual revenue growth and outperform the companies with weaker strategies. This engagement and retention of customers will ultimately lead to increased growth.
Social media and digital impact
Short-form video content has become crucial for success on e-commerce platforms like Instagram and TikTok. This form of advertising allows companies to target campaigns where their audience is most active, achieving an ROI far beyond the current 40% threshold of digital ads (HubSpot). Metrics like view counts, click-through rates, and conversions demonstrate the value of social media activity.
Businesses can use this data to adjust their branding strategies to focus on long-term growth and profitability.
Inspiration from successful brands
The market is highly saturated. Success is largely defined by how well brands use innovation and sustainability to build genuine connections with their audiences. As both traditional brands and newcomers have shown, strategic investments in new trends can generate additional revenue streams and loyal customers.
Nike’s use of virtual platforms
As Nicolas Bastien wrote, "Nike has entered the Creator Economy and metaverse by building immersive platforms to engage with consumers through virtual experiences while creating new communities." With custom-designed virtual sneakers, Nike can improve consumer engagement and open up alternative monetisation opportunities.
Emerging micro-brands outperforming legacy players
New micro-brands like Ugmonk and Maison Deux are disrupting markets with niche products focused on design, creativity and sustainable innovations, taking market share from traditional companies. Built on sustainability and purpose, these challenger brands meet the needs of today's consumers and grow in a constantly changing market.
These case studies provide an idea of what future-focused branding can mean for any business striving to remain relevant, competitive, and profitable, whether in technology or environmental preference.
The market is highly saturated. Success is largely defined by how well brands use innovation and sustainability to build genuine connections with their audiences. As both traditional brands and newcomers have shown, strategic investments in new trends can generate additional revenue streams and loyal customers.
Nike’s use of virtual platforms
As Nicolas Bastien wrote, "Nike has entered the Creator Economy and metaverse by building immersive platforms to engage with consumers through virtual experiences while creating new communities." With custom-designed virtual sneakers, Nike can improve consumer engagement and open up alternative monetisation opportunities.
Emerging micro-brands outperforming legacy players
New micro-brands like Ugmonk and Maison Deux are disrupting markets with niche products focused on design, creativity and sustainable innovations, taking market share from traditional companies. Built on sustainability and purpose, these challenger brands meet the needs of today's consumers and grow in a constantly changing market.
These case studies provide an idea of what future-focused branding can mean for any business striving to remain relevant, competitive, and profitable, whether in technology or environmental preference.
The market is highly saturated. Success is largely defined by how well brands use innovation and sustainability to build genuine connections with their audiences. As both traditional brands and newcomers have shown, strategic investments in new trends can generate additional revenue streams and loyal customers.
Nike’s use of virtual platforms
As Nicolas Bastien wrote, "Nike has entered the Creator Economy and metaverse by building immersive platforms to engage with consumers through virtual experiences while creating new communities." With custom-designed virtual sneakers, Nike can improve consumer engagement and open up alternative monetisation opportunities.
Emerging micro-brands outperforming legacy players
New micro-brands like Ugmonk and Maison Deux are disrupting markets with niche products focused on design, creativity and sustainable innovations, taking market share from traditional companies. Built on sustainability and purpose, these challenger brands meet the needs of today's consumers and grow in a constantly changing market.
These case studies provide an idea of what future-focused branding can mean for any business striving to remain relevant, competitive, and profitable, whether in technology or environmental preference.
Create a future-proof brand investment strategy
Brands wanting to remain relevant need strategies that align with tech trends and consumer expectations. Here's how companies can future-proof their branding.
Integrating AI and automation
Using predictive analytics and customer segmentation, brands can deliver targeted messages that improve engagement and operational efficiency. Automation ensures consistent communication, allowing you to focus on creating unique content.
Design refreshes and visual identity consistency
Brand identity is evolving, and consumers want something fresh. According to ROI Amplified, brands are updating their styles with animated logos, adaptable typography, and sleek design elements to maintain a modern appeal. These updates reinforce brand recognition and trust.
Seamless brand experiences with omnichannel strategy
Combining online and offline channels is now essential. Brands that deliver uniform consumer experiences across all their platforms and in the physical store attract high engagement, which creates brand loyalty. The omnichannel approach helps brands meet customers wherever they are and deliver seamless experiences. These strategies allow brands to remain strong, predict trends, and respond quickly to market needs.
Brands wanting to remain relevant need strategies that align with tech trends and consumer expectations. Here's how companies can future-proof their branding.
Integrating AI and automation
Using predictive analytics and customer segmentation, brands can deliver targeted messages that improve engagement and operational efficiency. Automation ensures consistent communication, allowing you to focus on creating unique content.
Design refreshes and visual identity consistency
Brand identity is evolving, and consumers want something fresh. According to ROI Amplified, brands are updating their styles with animated logos, adaptable typography, and sleek design elements to maintain a modern appeal. These updates reinforce brand recognition and trust.
Seamless brand experiences with omnichannel strategy
Combining online and offline channels is now essential. Brands that deliver uniform consumer experiences across all their platforms and in the physical store attract high engagement, which creates brand loyalty. The omnichannel approach helps brands meet customers wherever they are and deliver seamless experiences. These strategies allow brands to remain strong, predict trends, and respond quickly to market needs.
Brands wanting to remain relevant need strategies that align with tech trends and consumer expectations. Here's how companies can future-proof their branding.
Integrating AI and automation
Using predictive analytics and customer segmentation, brands can deliver targeted messages that improve engagement and operational efficiency. Automation ensures consistent communication, allowing you to focus on creating unique content.
Design refreshes and visual identity consistency
Brand identity is evolving, and consumers want something fresh. According to ROI Amplified, brands are updating their styles with animated logos, adaptable typography, and sleek design elements to maintain a modern appeal. These updates reinforce brand recognition and trust.
Seamless brand experiences with omnichannel strategy
Combining online and offline channels is now essential. Brands that deliver uniform consumer experiences across all their platforms and in the physical store attract high engagement, which creates brand loyalty. The omnichannel approach helps brands meet customers wherever they are and deliver seamless experiences. These strategies allow brands to remain strong, predict trends, and respond quickly to market needs.
Frequently Asked Questions
Is investing in branding worth it?
Yes, investing in branding is worth it because it builds trust and loyalty and makes your business stand out. A strong brand helps attract more customers, keeps them coming back, and boosts profits over time.
How much should you invest in branding?
Businesses usually invest 5-15% of yearly revenue into marketing. A lot of effort is directed to branding to build long-lasting and effective customer loyalty.
Is 10% ROI realistic?
Yes, a 10% return on investment is doable and generally a good achievement, but results can be different considering the variation in industry and brand strategy.
Conclusion
Branding is a major investment in establishing customer confidence and loyalty to ensure sustainable growth in today’s market. An established brand lowers customer acquisition costs, allows for higher pricing, and enables you to expand your revenue beyond a single product set. Businesses that invest in branding over the long term will be more adaptable to technological advancements and market conditions.
Businesses need to look ahead and focus on trends and sustainable tactics to remain competitive in the long term. Investing in branding now promises an incredible ROI for years to come.
Frequently Asked Questions
Is investing in branding worth it?
Yes, investing in branding is worth it because it builds trust and loyalty and makes your business stand out. A strong brand helps attract more customers, keeps them coming back, and boosts profits over time.
How much should you invest in branding?
Businesses usually invest 5-15% of yearly revenue into marketing. A lot of effort is directed to branding to build long-lasting and effective customer loyalty.
Is 10% ROI realistic?
Yes, a 10% return on investment is doable and generally a good achievement, but results can be different considering the variation in industry and brand strategy.
Conclusion
Branding is a major investment in establishing customer confidence and loyalty to ensure sustainable growth in today’s market. An established brand lowers customer acquisition costs, allows for higher pricing, and enables you to expand your revenue beyond a single product set. Businesses that invest in branding over the long term will be more adaptable to technological advancements and market conditions.
Businesses need to look ahead and focus on trends and sustainable tactics to remain competitive in the long term. Investing in branding now promises an incredible ROI for years to come.
Frequently Asked Questions
Is investing in branding worth it?
Yes, investing in branding is worth it because it builds trust and loyalty and makes your business stand out. A strong brand helps attract more customers, keeps them coming back, and boosts profits over time.
How much should you invest in branding?
Businesses usually invest 5-15% of yearly revenue into marketing. A lot of effort is directed to branding to build long-lasting and effective customer loyalty.
Is 10% ROI realistic?
Yes, a 10% return on investment is doable and generally a good achievement, but results can be different considering the variation in industry and brand strategy.
Conclusion
Branding is a major investment in establishing customer confidence and loyalty to ensure sustainable growth in today’s market. An established brand lowers customer acquisition costs, allows for higher pricing, and enables you to expand your revenue beyond a single product set. Businesses that invest in branding over the long term will be more adaptable to technological advancements and market conditions.
Businesses need to look ahead and focus on trends and sustainable tactics to remain competitive in the long term. Investing in branding now promises an incredible ROI for years to come.
ARTICLE #130
More news
Work with us
Click to copy
work@for.co
FOR® Industries
- FOR® Brand. FOR® Future.
We’re remote-first — with strategic global hubs
Click to copy
Helsinki, FIN
info@for.fi
Click to copy
New York, NY
ny@for.co
Click to copy
Miami, FL
mia@for.co
Click to copy
Dubai, UAE
uae@for.co
Click to copy
Kyiv, UA
kyiv@for.co
Click to copy
Lagos, NG
lagos@for.ng
Copyright © 2024 FOR®
Work with us
Click to copy
work@for.co
FOR® Industries
- FOR® Brand. FOR® Future.
We’re remote-first — with strategic global hubs
Click to copy
Helsinki, FIN
info@for.fi
Click to copy
New York, NY
ny@for.co
Click to copy
Miami, FL
mia@for.co
Click to copy
Dubai, UAE
uae@for.co
Click to copy
Kyiv, UA
kyiv@for.co
Click to copy
Lagos, NG
lagos@for.ng
Copyright © 2024 FOR®
Work with us
Click to copy
work@for.co
FOR® Industries
We’re remote-first — with strategic global hubs
Click to copy
Helsinki, FIN
hel@for.co
Click to copy
New York, NY
ny@for.co
Click to copy
Miami, FL
mia@for.co
Click to copy
Dubai, UAE
uae@for.co
Click to copy
Kyiv, UA
kyiv@for.co
Click to copy
Lagos, NG
lagos@for.ng
Copyright © 2024 FOR®