Have you ever found yourself defending the importance of branding at your B2B company?
Here are three points that you can use next time you’re slugging it out.
1. B2B brands build value
According to McKinsey, “The B-to-B brand is a source of tremendous value to both customers and companies. Organizations need to be more deliberate about developing the strategies and tactics that safeguard this asset.”
One McKinsey analysis, in fact, showed that strong brands consistently outperformed the market average. Comparing a portfolio of the world’s top-40 brands as ranked by Interbrand’s annual report to a traditional benchmark, the MSCI World, top brands outperformed this leading index by 73 percent from a total return to shareholders perspective.
2. B2B brands influence purchase decision
In a B2B survey with business decision-makers, McKinsey also found that a company’s brand is on par with sales in influencing purchase. Many product manager and sales associates think branding is “the icing on the cake.” Not so, says McKinsey. “While our research confirms the general importance of products, prices, and distribution, we have also found that branding matters. In fact, decision-makers consider the brand a central rather than a marginal element of a supplier’s proposition.”
3. B2B brands reduce risk for buyers
Finally, brands help reduce risk for B2B buyers. B2B brands often have a long selection process, high cost and significant implementation. Consequently, choosing the wrong B2B brand has major implications. “Buy the wrong toothpaste, and you can always change brands when the tube runs out,” McKinsey explains. But select the wrong B2B brand, and you could “hurt your company’s earnings for years—and find yourself looking for another job.”
Strong B2B brands build value, influence purchase decisions and reduce risk for buyers—three sound business reasons to help you win the fight to leverage your B2B brand for business growth.
Source: Brandchannel