Harnessing the power of brand to drive real value

Jesse Swash, co-founder of Design by Structure, explains the intangible value of brands and why this far exceeds the cost to create and manage it.

Businesses are made up of people, of equipment and machinery, of laptops and servers, of buildings and spaces and of warehouses and showrooms.  

Businesses make things, products that can be used and fitted, that serve a purpose, that deliver something for their end client. Businesses deliver services, something you might login to that helps you complete a task that drives productivity and save hours in a day.  

These are all tangible things. Balance sheet items that can be pointed at and counted, whose value can be measured, and their use tracked. They all have a starting cost, the cost of purchase, and they all have an end cost, the cost of replacement or upgrade. All these things have what is known as a tangible value, real, recognised and measurable.  

But businesses are not just the means of making and producing a product or service. Businesses are also brands. And here is where there is a higher layer of intangible value. One that is not as easy to touch and measure but one that is equally, if not more, powerful.  

This intangible power can be a pillar in your company’s success if harnessed and applied correctly. Indeed, Gartner recognises that in B2B, strong brands simplify purchase decisions and reduce perceived risk. 

Brands are so much more than a name or a logo. Brands are promises of expectation. An invitation to join a club or a tribe. A means of difference and differentiation. A way to create a halo around a product or service that makes it more desirable. A way of creating a category in the B2B space where only you can be the chosen one. Driving loyalty, advocacy and leads into the business and enabling a higher price point. 

Brand is what people say when you are not in the room. Brand has the ability to be persuasive on your behalf. To lend credibility that shortens sales cycles and drives pipelines. That builds customer and investor confidence.  

Brand is a cost in the same way tangible assets are a cost. But brand can deliver an exponential return when constructed and delivered correctly. A well-run business with a clear and well positioned brand will thrive. 

So, getting your brand right is as important as getting the product and service right. And if the product and service are thought of as assets, then so too should your brand be thought of an asset to your business. An asset with a value far beyond the cost to create and manage it. 

There are many ways to measure the value of your brand, with metrics such as Net Promoter Score (NPS), Share of Voice (SOV) and Customer Lifetime Value (CLV). For businesses to fully realise the potential of their brand as an asset, branding needs to sit with highest levels of leadership. Supporting and aligning with their strategic ambition, ensuring it plays its part in securing the commercial success the business deserves. 

McKinsey recognises that B2B companies that prioritise branding initiatives achieve revenue growth two-to-three times faster than competitors who underinvest.  

Brand then is an asset that can help any business unlock real, meaningful value.  

The question then is what kind of brand do you have and what kind of brand do you need to be to ensure your success? If the gap is too big then it’s time to invest in your brand, the most valuable intangible asset you have that will drive the greatest tangible value.