“A new logo? Why do I need a new logo? What’s wrong with the one I have?”
Sound familiar? It’s ok, I’ve even muttered the words above to myself about my own logo before, and I’m a graphic designer! Here’s how I knew it was time to give my logo a step up.
Consider this: as your business grows, your image and your branding should follow suit. Though you may love your initial branding concept, know that it’s ok to update it appropriately as your business grows. Branding and messaging can be refreshed over time to reflect where you are today. I bet your business is light years ahead of where it was three years ago, one year ago, or even six months ago for some people. Your business has evolved, and your logo should reflect that.
Ok, so you’re on board, but now there’s a wall that stops you dead in your tracks:
The thought of how much it will cost to change all your marketing materials to reflect your new logo sends you running to your next response which is most likely, “I don’t think it’s worth it.”
Some people might say determining the worth of a professional logo is impossible, but I can assure you there is a return, and I think you will be astounded. Below are five reasons why it may be time for you to step up your current logo.
(For illustrative purposes, I will use a fictitious company with annual revenues of $1M. By the end, you’ll see the monetary value of a professional brand.)
The more times a logo registers in your brain, the stronger relationship and association you have to purchase that brand.
A typical marketing budget is 7% ($70,000 of our $1M company). If you are able to trim 1% from your marketing budget by having a recognizable logo, this would result in $10,000 savings.
As much as we try not to judge a book by its cover, doing so is ingrained into our psychological being. A brand that exudes quality creates an immediate association of quality. This means when you have a great logo, you can charge more.
If the average ticket price is $100, and you are able to charge 2% more ($2) by having a professional logo, this would result in $20,000 additional revenue.
A University of California study was conducted to determine if looks alone could sway a vote. Led by political scientist Shawn W. Rosenberg, the study proved that looks do make a difference.
Two identical flyers were distributed, except one featured a tweaked photo of a person that looked like he had more integrity, competence, and leadership ability. The flyer with the tweaked photo received 12% more votes.
If the same metrics hold true in business as politics, a logo that instills integrity, competence, and leadership has the ability to convert 12% more business. Confidence also attracts employees, retains staff, and strengthen sales teams, who now have the confidence to close more sales at higher prices.
We’ll be conservative and estimate a 3% increase. Closing 3% more business results in additional revenues of $30,000.
Customers who are proud of brands tell more people, which generates more referrals. Pride also impacts your staff, resulting in more effort being put into their jobs.
Proud employees come to work earlier, try harder, and stay later. In an 8-hour shift, if they each work 10 minutes harder or smarter, that translates to a 2% boost in productivity, which is $20,000 in additional revenue. In addition, if one out of every 100 customers refers someone, that equals 1% more business and an additional $10,000.
Brand equity can make or break a company. And if you think branding has no financial impact, just ask private-equity firms that “buy” brands for billions of dollars, all for the brand cachet or loyal customer base.
That’s the reason people will pay three times as much for a white T-shirt at Nordstrom than they would at Target. Brand translates into bottom-line sales when done effectively.
You can’t deny that if you build a strong foundation and communicate it to the right people at the right time, you will attract just the interested customer you seek. In addition, a strong brand guides all the other marketing decisions that fuel your company’s growth: where to advertise, whom to partner with, how to price your product, etc.
Thanks for spending some time with me today!