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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
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
Ever looked at a rival brand and thought, “Why are people so hooked on them when our product’s just as good?” The short answer is brand investment.
From your favourite trainers to that café everyone queues for, successful names don’t just happen—they’re built through a steady commitment to developing a clear identity that resonates.
Throw “ROI” into the mix, and you might assume we’re talking about cold, crunch-the-numbers logic. But really, brand investment is a strategic move that connects the heart of your business with the desires of your audience. Below, we’ll explore how purposeful brand spending can spark loyalty, cut long-term costs, and ensure you’re not simply another face in the market.
Ever looked at a rival brand and thought, “Why are people so hooked on them when our product’s just as good?” The short answer is brand investment.
From your favourite trainers to that café everyone queues for, successful names don’t just happen—they’re built through a steady commitment to developing a clear identity that resonates.
Throw “ROI” into the mix, and you might assume we’re talking about cold, crunch-the-numbers logic. But really, brand investment is a strategic move that connects the heart of your business with the desires of your audience. Below, we’ll explore how purposeful brand spending can spark loyalty, cut long-term costs, and ensure you’re not simply another face in the market.
Trends influencing brand investment
Trends influencing brand investment
Modern branding is shifting, with businesses rethinking how to connect with audiences. Two key trends are at the forefront: artificial intelligence (AI) and interactive storytelling. These tactics deepen engagement, build loyalty, and ensure your brand keeps pace with what customers crave.
Brand success with AI and personalisation
The way companies engage with customers has evolved fast, thanks to AI. Today, 71% of people expect personal interactions—sometimes, even a simple greeting by name goes a long way. AI chatbots, for instance, can guide visitors through your website while predictive models customise the overall experience. Tech brands already use these methods to tighten relationships, lower customer churn, and raise satisfaction levels.
Interactive content and visual storytelling
Interactive content has risen in popularity as a fun, visually compelling way to stand out. Some brands use augmented reality (AR) features to create experiences that span digital and physical worlds. For example, Nike sparks creativity by letting people design virtual trainers that they can then purchase. It blends imaginative design with real-world sales.
Modern branding is shifting, with businesses rethinking how to connect with audiences. Two key trends are at the forefront: artificial intelligence (AI) and interactive storytelling. These tactics deepen engagement, build loyalty, and ensure your brand keeps pace with what customers crave.
Brand success with AI and personalisation
The way companies engage with customers has evolved fast, thanks to AI. Today, 71% of people expect personal interactions—sometimes, even a simple greeting by name goes a long way. AI chatbots, for instance, can guide visitors through your website while predictive models customise the overall experience. Tech brands already use these methods to tighten relationships, lower customer churn, and raise satisfaction levels.
Interactive content and visual storytelling
Interactive content has risen in popularity as a fun, visually compelling way to stand out. Some brands use augmented reality (AR) features to create experiences that span digital and physical worlds. For example, Nike sparks creativity by letting people design virtual trainers that they can then purchase. It blends imaginative design with real-world sales.
Why investing in your brand delivers ROI
Companies focusing on brand identity often see notable returns, both financially and competitively. A strong brand strategy underpins reliable profit margins, improved cost efficiency, and ongoing success.
Commanding premium prices
If your brand truly resonates with customers, they’re usually happy to pay more. In fact, 57% of consumers say they’d pay extra for environmentally friendly products—even in times of inflation. When a brand is known for quality, the higher price feels justified, reflecting the value people believe they’re receiving.
Lower customer acquisition costs
A brand that speaks to people on a deeper level fosters loyalty. That loyalty turns into word-of-mouth referrals, shrinking your advertising spend. According to Kantar, brands guided by a clear purpose build trust and community more effectively, which reduces the cost of attracting new customers.
Sustainable approaches as a competitive edge
Brands that embrace sustainable methods—like eco-friendly packaging or socially responsible campaigns—often outperform peers, earning three times faster growth. This approach keeps a business relevant in a rapidly changing market and ensures it’s ready for future challenges.
In short, branding helps companies stand out in tough arenas, balancing short-term profitability with ongoing relationships that last.
Companies focusing on brand identity often see notable returns, both financially and competitively. A strong brand strategy underpins reliable profit margins, improved cost efficiency, and ongoing success.
Commanding premium prices
If your brand truly resonates with customers, they’re usually happy to pay more. In fact, 57% of consumers say they’d pay extra for environmentally friendly products—even in times of inflation. When a brand is known for quality, the higher price feels justified, reflecting the value people believe they’re receiving.
Lower customer acquisition costs
A brand that speaks to people on a deeper level fosters loyalty. That loyalty turns into word-of-mouth referrals, shrinking your advertising spend. According to Kantar, brands guided by a clear purpose build trust and community more effectively, which reduces the cost of attracting new customers.
Sustainable approaches as a competitive edge
Brands that embrace sustainable methods—like eco-friendly packaging or socially responsible campaigns—often outperform peers, earning three times faster growth. This approach keeps a business relevant in a rapidly changing market and ensures it’s ready for future challenges.
In short, branding helps companies stand out in tough arenas, balancing short-term profitability with ongoing relationships that last.
Metrics for measuring brand ROI
It’s one thing to invest in branding; it’s another to be sure it’s paying off. With data-driven tools, you can look beyond followers and “likes” to see how your branding efforts directly impact the bottom line.
Customer loyalty and retention
Repeat purchases and retention rates reflect whether your brand has genuine traction. Tracking these metrics reveals your ability to hold customers’ attention. Lower churn not only boosts revenue but also proves your brand is consistently delivering on its promises.
Revenue growth and market share
According to Deloitte, brands that use multiple channels effectively could see about 9.5% yearly revenue growth. Combining online and offline touchpoints helps you hold onto existing customers and bring new ones in, which supports stable expansion over time.
Social media and digital impact
Short-form video content has become particularly powerful, especially on platforms like TikTok and Instagram. By targeting campaigns where users are most active, some companies report an advertising return far beyond the 40% average for digital ads. Track video views, click-through rates, and conversions to see how well your strategy is working.
It’s one thing to invest in branding; it’s another to be sure it’s paying off. With data-driven tools, you can look beyond followers and “likes” to see how your branding efforts directly impact the bottom line.
Customer loyalty and retention
Repeat purchases and retention rates reflect whether your brand has genuine traction. Tracking these metrics reveals your ability to hold customers’ attention. Lower churn not only boosts revenue but also proves your brand is consistently delivering on its promises.
Revenue growth and market share
According to Deloitte, brands that use multiple channels effectively could see about 9.5% yearly revenue growth. Combining online and offline touchpoints helps you hold onto existing customers and bring new ones in, which supports stable expansion over time.
Social media and digital impact
Short-form video content has become particularly powerful, especially on platforms like TikTok and Instagram. By targeting campaigns where users are most active, some companies report an advertising return far beyond the 40% average for digital ads. Track video views, click-through rates, and conversions to see how well your strategy is working.
Inspiration from successful brands
It’s a crowded field out there. Standing out often depends on how effectively you adopt fresh ideas and remain genuine with your audience. Both well-known brands and new players have shown that a bold approach can add revenue streams and earn long-term loyalty.
Nike’s use of virtual platforms
As branding specialist Nicolas Bastien points out, Nike moved into the “Creator Economy” by building immersive digital hubs. These let consumers customise virtual trainers and experience exclusive events. It keeps fans excited and opens up extra ways to make money.
Micro-brands taking on legacy names
Upstarts like Ugmonk and Maison Deux use sustainable design and a creative flair to shake up markets previously owned by older brands. By prioritising eco-minded products and a distinct purpose, these smaller companies are winning modern consumers’ trust—and, in many cases, gaining valuable market share.
It’s a crowded field out there. Standing out often depends on how effectively you adopt fresh ideas and remain genuine with your audience. Both well-known brands and new players have shown that a bold approach can add revenue streams and earn long-term loyalty.
Nike’s use of virtual platforms
As branding specialist Nicolas Bastien points out, Nike moved into the “Creator Economy” by building immersive digital hubs. These let consumers customise virtual trainers and experience exclusive events. It keeps fans excited and opens up extra ways to make money.
Micro-brands taking on legacy names
Upstarts like Ugmonk and Maison Deux use sustainable design and a creative flair to shake up markets previously owned by older brands. By prioritising eco-minded products and a distinct purpose, these smaller companies are winning modern consumers’ trust—and, in many cases, gaining valuable market share.
Create a future-proof brand investment strategy
To keep your brand strong in a changing environment, consider forward-thinking ideas that match emerging tech and evolving consumer preferences. Here are three approaches:
Integrating AI and automation
By tapping into predictive analytics and customer segments, brands can personalise communications while cutting manual tasks. Automated messaging provides consistency, letting your team focus on imaginative content rather than repetitive outreach.
Design refreshes and consistent visual identity
Consumers gravitate towards brands that feel current. Some are refreshing their look with animated logos, flexible typography, or stylish design elements. According to ROI Amplified, modern branding strengthens recognition and trust across all channels.
Unified brand experiences with an omnichannel approach
Online and offline channels both matter. By aligning how customers interact with your brand—be it on a website, social media, or in-store—you build loyalty and boost engagement. This cohesive strategy ensures your brand remains robust and ready to respond to evolving customer demands.
To keep your brand strong in a changing environment, consider forward-thinking ideas that match emerging tech and evolving consumer preferences. Here are three approaches:
Integrating AI and automation
By tapping into predictive analytics and customer segments, brands can personalise communications while cutting manual tasks. Automated messaging provides consistency, letting your team focus on imaginative content rather than repetitive outreach.
Design refreshes and consistent visual identity
Consumers gravitate towards brands that feel current. Some are refreshing their look with animated logos, flexible typography, or stylish design elements. According to ROI Amplified, modern branding strengthens recognition and trust across all channels.
Unified brand experiences with an omnichannel approach
Online and offline channels both matter. By aligning how customers interact with your brand—be it on a website, social media, or in-store—you build loyalty and boost engagement. This cohesive strategy ensures your brand remains robust and ready to respond to evolving customer demands.
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?
Many businesses allocate between 5% and 15% of their yearly revenue to marketing, a portion of which supports brand building. It’s vital for long-term 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
Brand investment isn’t about piling on flashy extras. It’s the steady hand that shapes your identity, wins the trust of real people, and helps your company evolve with every twist in the market. By aligning consistent messaging with genuine purpose, you reduce acquisition costs, command better prices, and open up fresh revenue possibilities—all while staying true to what sets you apart. And that’s how strategic storytelling can become a springboard for meaningful growth.
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?
Many businesses allocate between 5% and 15% of their yearly revenue to marketing, a portion of which supports brand building. It’s vital for long-term 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
Brand investment isn’t about piling on flashy extras. It’s the steady hand that shapes your identity, wins the trust of real people, and helps your company evolve with every twist in the market. By aligning consistent messaging with genuine purpose, you reduce acquisition costs, command better prices, and open up fresh revenue possibilities—all while staying true to what sets you apart. And that’s how strategic storytelling can become a springboard for meaningful growth.
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Work with us
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FOR® Industries
We’re remote-first — with strategic global hubs
Click to copy
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Click to copy
New York, NY
ny@for.co
Click to copy
Miami, FL
mia@for.co
Click to copy
Dubai, UAE
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Click to copy
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