How your brand can drive revenue

In the world of business, a brand is not merely a logo or a name; it’s an asset that encapsulates the perception, image, and feelings associated with your company and its products or services.

Building a strong brand is essential as it can significantly impact your revenue and overall success. In this blog, we will explore the value of brands, their role in driving revenue, and practical strategies to enhance your brand’s contribution to your business.

The value of brands

The value of a brand can’t be underestimated. According to Brand Finance, the top 100 B2B brands are collectively valued at a staggering USD 2 trillion. Among these brands, Microsoft stands out as the world’s highest-valued B2B brand, with a brand value of USD 137.5 billion. Moreover, Chinese brands have been making a strong presence in the top 100 ranking, constituting 23% of the list.

Brand Finance’s research reveals that the B2B sector is dominated by brands in Financial Services, Technology, Healthcare, Professional Services, and Energy. These industries recognise the power of branding and invest heavily in building and maintaining their brand equity.

David Haigh, Chairman & CEO of Brand Finance, emphasises the significance of a strong brand in the current market. He states…

Building brand value is a long-term strategy

Building brand value is not a quick fix; it’s a long-term strategy that requires consistent effort and investment. Brand equity, which represents the commercial value of a brand derived from customer perception, is a key concept here.

Benefits of a strong brand and how it drives revenue

• Differentiation and competitive advantage: A strong brand differentiates your business from competitors, making it easier for customers to choose your products or services. It helps clearly articulate what your company stands for.
• Audience targeting: Effective positioning and messaging enable precise audience targeting, ensuring that your brand resonates with the right customers.
• Speed up buying cycle: A strong brand creates awareness that can expedite the buying cycle. When customers are already familiar with your brand, consideration comes sooner.
• Premium pricing: Strong brands can command premium pricing, as consumers perceive them as trustworthy and high-quality. People are often willing to pay more for a brand they trust.
• Increased marketing opportunities: A strong brand provides the opportunity to reinvest in additional marketing activities, increasing your share of voice and market.
• Advocacy and referrals: Satisfied customers become advocates, leading to referrals and word-of-mouth marketing.
• Talent acquisition: A strong brand also attracts top talent, contributing to long-term success and resilience against economic fluctuations and industry disruptions.

Industry Focus: IT Services

Salesforce is one example of B2B brands growing by reach. Salesforce has shown impressive growth in the past 20 years by applying the advertising theory known as the Advertising Intensiveness Curve, which shows that larger shares of voice are associated with larger shares of market.

From 2015-2021, Salesforce invested 45% of its revenue on sales and marketing, which allowed them to consistently take market share from its direct competitor, SAP, who spent around 25% of revenues on sales and marketing. Consequently, during this timeframe, Salesforce’s revenue grew 4x compared to SAP’s 1.4x. The lesson learned from Salesforce is that advertising investment and broad reach communications that increase share of voice help grow the business. This is the case in in B2B as has been in B2C. Source

“IT services brands that have consistently focused on building perceptions as a global technology led advisor have gained a competitive edge and unlocked significant brand and business value over the last 10 years – Branding is becoming a non-negotiable activity in the IT services sector.” Lorenzo Coruzzi Associate Director, Brand Finance

How to create a compelling brand

To harness the power of branding and drive revenue, B2B brands should consider these steps:

• Understand your audience: Research your target audience to glean a deep understanding of their needs and pain points.
• Articulate your value: Develop a messaging framework that clearly articulates your value proposition, addressing challenges, offering solutions, highlighting benefits, and emphasising differentiation.
• Shift to brand building: Recognise the shift from traditional sales and relationship building to brand building. Buyers now prefer brands they already have in mind at the beginning of the sales process, so being top of mind is crucial.
• Balanced marketing approach: Build a balance between broad reach and activation campaigns. Use digital marketing and omni-channel strategies to efficiently reach both in-market and potential buyers.
• Consistency across touchpoints: Ensure a consistent brand presence across all touchpoints globally, with flexibility to adapt for local market conditions.
• Proactively manage reputation: Reputation management is key to maintaining credibility. Be responsive to customer feedback and address any issues promptly.
• Effective communication: Develop a communication plan that ensures you’re in the right place at the right time with the right message.
• Commitment to sustainability: A commitment to sustainability is an important driver of brand equity. Consumers and businesses alike value environmentally responsible brands and many will gravitate to those with sustainable credentials over those without.
• Emotional campaigns: Consider injecting emotion into B2B campaigns as studies show that emotional campaigns outperform rational ones 0.2 to 1.4. Emotive campaigns can lead to positive shifts in perceptions and behaviours according to the IPA databank of cases 1998 to 2023

In conclusion, building a compelling brand is not just a marketing strategy; it’s a critical driver of revenue and business success. B2B brands that invest in understanding their audience, crafting a strong message, and building a consistent and credible brand presence will reap the benefits of increased differentiation, customer loyalty, and revenue growth. Don’t underestimate the power of your brand — it can be your most valuable asset in the competitive B2B space.

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