Brand strategy: we can't get enough of it. We keep hammering on about the importance of a good brand strategy. We could list a lot of reasons for that, but the most important one remains really just very simple: a good brand strategy makes you money. That's why in this blog we want to talk about the impact of brand strategy on sales. Because there is. Companies that carefully design their brand identity and strategy reap the benefits in the form of higher sales.

The foundation of brand strategy

A strong brand strategy begins with a clear understanding of the company's core values, mission and vision. This is the promise to your customers about what they can expect from your products or services. This strategy must resonate with the target audience and be consistently communicated through all channels. If you want to know more about this, read this Q&A on brand identity and brand strategy. It covers all of this in detail, but in this blog we are going to focus more on the end goal of a good brand strategy, which is to boost sales, revenue and profits.

Why do you even have a brand strategy?

As we said in the introduction: there are countless reasons to invest in a good brand strategy. At the bottom line, everyone is left with the same thing: you choose (and live!) a brand strategy that impacts your sales. So is it purely a financially driven choice? Absolutely not. Because, that impact on your sales figures does not just happen. Along the way, your brand strategy ensures that you make the right decisions that lead to the end goal. You can think of your brand strategy as a checkpoint. The end goal of the journey is an improvement in your business results; your brand strategy gives you the tools, is your route planner during the journey and ensures that once at the destination you don't stray.

To take advantage of the benefits, there will have to be internal conviction

Your brand strategy is not a magic formula. It has to make sense to the outside world. If it were that easy to boost your sales purely by working with a brand strategy, we would all be sitting pretty. How a good strategy contributes to your sales, revenue and profits we will go into more detail in a moment. First, it's important to know that internally you must be fully convinced of the strategy to be adopted. It is a kind of promise you make as an entrepreneur, brand or company. If you are convinced of your strategy, then you will stick to it, especially in difficult times. When everyone in the company understands and supports the brand goals, its execution is strengthened. This ensures a consistent brand story and contributes to market success.

Image: Your brand strategy ensures that you make the right decisions that lead to your company's end goal

The first step to greater sales success: connecting with your target audience

Understanding the soul of the customer: that is a crucial component that should be ingrained in your brand strategy. After all, your brand strategy is for your customer. You can create so many great things; if your ideas do not resonate with your target audience, you can whistle for those great sales figures. By understanding the needs, wants and pain points of your target audience, you can develop a brand strategy that truly resonates. This deep understanding allows you to make connections and build loyalty. We often compare your brand strategy to a journey. This is apt because you don't travel alone. During the journey, you want to pick people up on all sides and take them with you.

Turning now to practice: does brand strategy really affect sales?

A well-thought-out brand strategy can have a significant impact on sales. When customers feel connected to a brand and share its values, they are more likely to purchase. Moreover, a strong brand strategy can help justify a price premium. This is not so because we say so or because it's a nice story: it is proven time and again by real-world experience.

The success of well-known brands such as Tesla, Apple and Nike is due in part to their outstanding brand strategies. These companies not only have high-quality products, but also a clear mission and values that resonate with their target audiences. Their ability to create an emotional connection contributes to their impressive sales figures. People don't want an electric car: they want a Tesla. They don't want a computer: they want a Mac. They don't want athletic shoes: they want Nikes. Of course, products must continue to meet customer expectations, but this is also partly due to the fact that customers have become convinced that these brands are for them, and brand strategy is largely responsible for that. And for people who are now shouting: but isn't that marketing!? True, but your marketing always flows from your brand strategy.

The importance of customer relationships

Building strong, lasting relationships with customers is the cornerstone of any successful brand strategy. These relationships are based on trust, consistency and a brand's ability to authentically communicate and deliver what is promised. By treating customers as individuals and engaging them in the brand story, you not only create loyalty, but also encourage word-of-mouth, which can have a powerful impact on sales figures. We like to emphasize this very point and these "small" components of your brand strategy. After all, we are not all Tesla, Apple or Nike. For many of us, those very things like word of mouth are excellent drivers of success.

Within any brand strategy, there should also be a solid focus on retention: keeping customers. That boost in sales is not only achieved by continuing to expand your target group and customer base, but also by ensuring that your satisfied customers remain your satisfied customers. So that Tesla driver will buy a Tesla again and not switch to Mercedes-Benz or Nio.

No one can afford laziness

If you want to remain successful, you will have to stay on top of your game. Your brand strategy is therefore never finished. Nobody can afford laziness, especially not the top players. To illustrate this, it's cool to bring up Tesla again. Their story over the past few years illustrates how continuously working on your brand strategy ensures better sales figures, but also, for example, a strengthened brand perception.

Tesla took off like a rocket just over a decade ago. In a short time, the brand became a leader in EVs. Then you might say: the strategy was right. It did at the time, but what many people probably don't realize is how much Tesla has had to keep working on its brand strategy to remain successful. For a long time, Tesla pretty much had the monopoly on luxury electric cars, but of course the competition was not sitting still. Fast forward after a few years ago. Traditional carmakers in the luxury segment such as BMW, Mercedes-Benz and Audi were - no pun intended - giving gas with their electric cars. A new situation arose that forced Tesla to make new strategic choices. Almost everyone agreed that Tesla still built the best electric cars, but not necessarily the best cars. A Tesla did not have the driving dynamics of a BMW, the comfort of a Mercedes-Benz or the level of finish of an Audi. Had Tesla strategically done nothing with this, their sales numbers would undoubtedly have dropped significantly, but the brand invested in new factories, better quality control, new seats, continued development of the user interface and better materials and finishes. These have not been pure reactions; they are the result of a continuous focus on strategy and the question: what do we want? Who do we want to be? By analyzing this sharply, looking at the market and listening to customer feedback, decisions were made that improved the products, strengthened the brand and responded to the wishes and demands of the target group.

Image: Tesla continuously focuses on its strategy

So you see: brand strategy, brand positioning and brand identity complement each other

Among other things, we pointed out in our Q&A how brand strategy and brand identity differ, but at the same time you can see how they - plus brand positioning - complement and influence each other. Apple, for example, emphatically positions itself as high end. The brand strategy has to provide for that, because without products with the right quality, look and feel, the brand positioning is an empty promise. The other way around also applies: you can build such great things; if you don't market your products in the right way, you're never going to realize their full potential.

So how do you ensure maximum impact with your brand strategy?

Want to develop a brand strategy that truly impacts your sales and how customers perceive your brand? Then consider the points below:

• Develop deep customer understanding: Conduct regular market research to understand the needs, wants and challenges of your target audience.

• Articulate a clear mission and vision: Make sure your brand has a clear and inspiring mission that aligns with the values of your target audience.

• Ensure consistency: Ensure consistency in all communications and brand expressions to build trust and recognition.

• Storytelling: Use storytelling to create an emotional connection with your target audience and enrich the brand experience.

• Measure and adapt: Monitor the performance of your brand strategy and be open to adjustments based on feedback and changing market conditions.

Perhaps an even better idea: get in touch with us. We would love to spar with you about how we can add value to your brand strategy. Whether it's about coming up with a new strategy or fine-tuning your current one: we're here for you.