Retail Observer

RETAILOBSERVER.COM JUNE 2022 46 Steven Morris On Brand M uch of my work as a brand and culture strategist sits at the intersection of tangible and intangible outcomes. "Brand" is a fuzzy term even in the business world. Not only is there lots of confusion around what makes a brand, there's not a lot of clarity about the value of a good brand. Moreover, It's actually not even easy to put a value on a brand that has evolved, taking the business to a higher level. Yet, in successful companies, brand valuations account for over half of their market capitalization (the market value of a publicly traded company's outstanding shares). As of May 2022, Apple had a market capitalization of $2.572 trillion. Half of that – the value of the Apple brand - is roughly $1.25+ trillion. Consider the value of Coca-Cola, Nike, Google, Microsoft, Tesla and other top brands. Those are some pretty valuable intangibles! The pure gold of a great brand isn't just a factor for public companies. Small companies, private organizations and even non-profits invest in their brand because they know it shapes both their tangible and intangible positions. According to the SBA, there are roughly 31 million small businesses in the U.S. What would the value of Patagonia (a private company) be without its brand? How about the NFL, State Farm and countless lesser-known brands? Think of your own business. What's the value of its brand, and all the equity you've invested in it? Are the intangibles of a brand meaningless? Considering all the things your business invests in – its people, technology, infrastructure, facilities, etc. – which of them have the biggest long-term payoffs? A client I've worked with since 2018 summed up the company's feelings: "In our 37 years in business, our brand and culture work with you has been by far the best investment we've made." From where I sit, the evidence is clear and compelling: your brand and its cultural underpinnings are among your biggest long-term investment payoffs. Consider the alternative: not investing in a brand strategy. Here are a few likely outcomes: • No clear organizing system to align your team and leadership decisions • No clear direction to aim your business success • No clear driving motivators to base your business actions on (aside from "how to make money") • Low motivation for meaningful innovation • No system for aligning your leadership team, leading to fractured decisions, back-channeling and infighting • Little or no guidance for how to consistently care for your customers • A weak and confusing market position that siphons your customers to your more trustworthy competition • Weak customer loyalty, because you're a commodity business that competes on price • No meaningful attractors or engagers for the right team members • The team members you do have, have little appetite to stay or to create quality work (aside from financial compensation) • No organizing system for marketing communication, innovation or defining success in business (aside from how much money you make) I could go on, but you get the point. Your business will invest in these brand intangibles when you understand what a great brand can and will do for your business. So, instead of thinking about a brand as "intangible," think of it as a powerful magnet. (I cover brand magnetism in my recent book.) A great brand strategy is an organizing system that attracts and retains the right customers and the right employees, investors and partners. Your brand is also a bond that holds your business strategy together. It magnetically connects your people to your products and services. The magnetism of that powerful bond motivates people. It connects people. It creates a unified cultural foundation. It drives innovation. It defines customer service. It defines your company's true-north. And it aligns all you do to an ignited, united core. How long do you think your business will compete effectively in the marketplace without a clear brand strategy? If you want your business to pay long-term dividends, you must invest in your brand and culture. My work as a brand and culture- building expert is to help you create and sustain that magnetic bond. THE VALUE OF A BRAND Thinking differently about brand intangibles Steven Morris is a brand, culture and leadership advisor, author, and speaker. Over his 25+ years in business he's worked with 3,000+ business leaders at 250+ global and regional companies. Discover: https://matterco.co RO

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