A Brand Strategy Framework

How Professionals Create Winning Brands

Highlights

  • Most brand strategies are designed to maximize brand equity. That's not the smart path. Sure, for companies with successful brands, their identity is worth more than their products, and that dramatically increases company valuation. But you can't put the cart in front of the horse. Brand performance is the prerequisite to value.
  • Designing a brand strategy for performance means creating an identity that delivers recurring payback in the forms of reaching more prospects, converting more customers, permitting price premiums, reducing competition and growing company revenues.
  • The smart strategy is to design for financial performance gains and let brand equity take care of itself.
Johnny Grow Revenue Growth Consulting

A Brand Strategy Framework for Revenue and Profit Growth

Brand equity and performance are related but different. Equity is a balance sheet valuation measure. And while it's important, it's a lagging indicator built on measures that came before it. Brand equity is a consequence of performance.

So, when helping clients build brands or rebrand, we apply a brand strategy framework that drives specific business performance measures such as reaching more prospects, converting more customers and growing revenues. We know when we are successful with these objectives brand equity will follow.

Here is the 4 step Johnny Grow Brand Strategy Framework that we have developed over a few decades.

Brand Strategy
1

Definition & Identity

If your brand is not resonating with customers it might be time for a rebrand.

That doesn't mean changing your logo, tagline or packaging. While these types of identity measures may be needed they are not going to move the needle on the profit and loss statement. What's needed is a purposeful message that stands out from the crowd, attracts attention and reduces competition and commoditization.

To achieve an identity that delivers financial outcomes, you need to start with customer research. The research shifts your brand design from assumptions and aspirations to a data-driven and fact-based definition based on exactly what most appeals to customers. The research is critical because if the definition is wrong, every decision and investment thereafter will disappoint.

Once you understand how your customers make purchase decisions, you can craft an identity or purpose that creates a divide between you and your competitors.

However, to do that the message must meet the four requirements of being relevant, personalized, measurable and sustainable. Miss any one of these four criteria and the message reverts from driving increased revenues to becoming just another pretty logo.

The brand pyramid is a framework that applies customer research and the sequential requirements needed to drive financial results.

Brand Pyramid
2

Amplification & Reach

Even the best products need to found by customers.

A good product with a good brand is far more powerful than a great product with no brand.

So, once you have an identity that works it’s time to amplify the message and expand market reach. Applying a precision approach will save money and increase effectiveness.

For example, focusing on brand awareness campaigns among your target audiences will increase marketing and sales conversions. Or focusing on brand preference campaigns will increase sales win rates and repeat sales. Or focusing on brand trust will increase customer lifetime value and customer retention.

While these types of deliberate campaigns may seem obvious, they are not the norm. Most companies spend money on generic campaigns which is little more than a shotgun approach.

3

Operational Measurement

You can't manage what you can't measure. That's why a good brand strategy framework identifies the brand metrics that matter and applies rigorous brand impact reporting to show what's working and what needs improvement. We routinely use dashboards that deliver real-time information to people empowered to act on that information.

Company Brand Dashboard

See the Brand Dashboard that delivers the most impactful performance metrics.

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4

Financial Performance

The best reporting is end to end reporting built on a closed loop process. That process automatically connects data to brand metrics to marketing and sales conversions and finally to the company's financial results.

And with this level of automation the financial results speak for themselves.

Brand research published in the Marketing Transformation Report shared that B2B marketers with active brand management programs delivered 18 percent more leads to the salesforce, 21 percent higher contribution to the sales pipeline, and 21 percent higher marketing ROI than marketers without these programs.

The research also found that B2C marketers with active programs achieved 4 percent higher year over year revenue growth and 21 percent higher marketing ROI.

These results are significant, sustained and should not go unnoticed.