In the age of AI and the modern buying process, a strong brand is more important than ever. Strong brand is easy to say and we consultants love to use the term – but what is a “strong brand”? And how does it generate more profitable business?
Many people make the connection “strong brand = well-known brand”. But that is not necessarily true. My definition of a strong brand is a brand that drives behavior, which in most cases means that it creates associations with the target group that makes it want to buy more and/or is willing to pay more for a product or service.
The second important parameter is that a strong brand can create loyalty beyond reason. If you really like a brand, you tend to stick to it and even promote and defend it. This means that you get a certain leniency towards mistakes in your relation. It is easy to forgive a friend…
The fact that a brand is popular can contribute to its strength, but not necessarily. We often use two well-known brands to exemplify: Saab Cars and Ryanair. Saab’s brand was very strong in the early 2000s. Saab was a beloved car with a loyal crowd of buyers. Saab was praised in various contexts as an innovator of the industry. But despite the fact that very many people “liked” Saab, far too few actually bought the car. Saab was, in short, well-known and well-liked for the wrong things – things that did not drive sales. We know how the car brand Saab came to a sad end.
Ryanair is basically the opposite to Saab. Ryanair is a brand that evokes at least as strong emotions, probably stronger, and often negative. But despite the fact that Ryanair is most often allowed to run amok in the media due to lack of security, poor personnel policy and strange “innovations” to save on costs, it is one of the world’s most profitable airlines. Everything about Ryanair makes us associate them with being cheap. But Ryanair is well known and unpopular for exactly the right parameters – the one’s that actually drive sales. If you want to go to London for a short vacation, they are probably on your list of alternatives.
And this is the core. Building a strong brand is not a beauty contest – it is a business contest. The brand should make sure that you are mentally available, or often called “on the buyer’s list”. And once you are considered it should help you convince both technical and hidden target groups. If you succeed the brand will help you to sell more and get better paid than your competitors, as well as keeping your customers for longer.
Not a bad base for a more profitable business.
And if you want to discuss branding for more profitable business, you are always welcome to contact ulf@sfinxagency.se
