What is the ROI of Branding?

October 5, 2021
October 5, 2021 Ryan Lavigne

When discussing brand identity development with new potential clients, they often wonder why they should invest in their brand. In a nutshell, if you’ve created a business that you hope will sustain the lifestyle you want for yourself and family, don’t you think it’s worth ‘doing right’? But why does it matter? How is investing in your brand ultimately going to pay off? What is its Return on Investment?

Our Top 5 reasons why effective branding matters:

  1. A strong brand attracts more customers at a lower cost per acquisition – customers who are happy to pay a little more and buy a little more often.
  2. Top of mind awareness. When customers are looking for your product or services, those with the strongest brands come to mind first and are by far the most memorable?
  3. EVERY company that has driven above average profitable growth, has invested heavily in their brand.
  4. A strong brand worked as a barrier to entry for future competitors, in effect creating a legal monopoly.
  5. Better brands attract better employees. Your brand is you r company’s most valuable asset, but having a strong brand helps attract and keep your second most valuable asset – great employees. The best candidates will always want to work with the best employer brands.

Let’s consider all of the above examples in a real-world scenario and pit Coca-Cola against whatever generic cola company you would like.

  1. Which of the 2 choices has more customers and why? Does Coca-Cola attract more customers than the generic brand? Are most people happy to pay a little bit more to enjoy their product?
  2. You’re craving a cold cola, which brand comes to mind first; coke or the generic brand? Which is more memorable?
  3. Is it fair to say Coca-Cola has invested heavily in their branding? Do you feel like it’s paid off for them?
  4. If you were looking to start a cola business, do you think you’d have what it takes to go head to head in the marketplace with Coca-Cola?
  5. I’m sure both businesses have a fantastic set of employees, but if you were holding a job offer for both, which one do you think you’d lean towards?


Branding matters. Make it effective, match it to your target demographic and you can’t go wrong.