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5 Things That Determine Your Return on Investment

When companies of any size spend money they expect (or at least) hope to get a return on that investment. It’s not too much to ask. Of course the trick is to determine “what” will bring in the greatest return. You have to be honest with yourself and recognize that that return isn’t always about the money. We know the end game is money but the road to getting there—the motivator is often times something entirely different. It’s usually some event that motivates brands to take a hard look at themselves and determine whether or not a brand needs an over-haul.

Five influencing facts might be:

ONE: Low hanging fruit—let’s say it is the money.

They want more of it. They want to increase the brand’s market share. A tell-tale sign is that sales are flat and the sales staff have hit a wall. This happens when brands follow perceived industry leaders and the sales staff are having the same conversations with their clients that their competition is. They have no differentiator. Sales needs a reason to sell, to draw their customer base to them. This attraction would be their ROI

TWO: Succession.

What becomes of a brand when the leadership decides to retire or there is a death? They chose to re-brand to make sure the brand is seen in it’s most desirable light. This makes it to be more desirable to a buyer. It doesn’t matter whether this new owner is from inside or outside of the company. Desirability is the ROI here.

THREE: Buy-out.

If someone approaches them to sell, the decision makers choose to re-brand so that they are ready to sell if that sale becomes an actuality. They want to be perceived as powerful. Perception is the ROI is this case.

FOUR: Culture.

This comes up if the staff are not so motivated anymore. Internal communications are lacking and the general atmosphere needs an energy pill. Each company’s culture is unique and affects the mechanics of the brand—it works in unison. That energy would be their desired ROI.

Related Article: The Truth About Branding

FIVE: A Negative Event

Maybe the brand was recently part of a scandal, the stock nose-dived or some other catastrophic event. The leadership wants the brand to regain it’s power position. If the brand is powerful, it is able to withstand these overwhelming events. The ROI hoped for here is power in the comeback.

There are whole number of reasons why you and many other companies like you might desire a closer look at their branding. These reasons each carry with them an expectation for ROI. Addressing them is the sign of a very pro-active brand. One that refuse to accept the mediocre and strives to be the best in their category.

Published: February 11, 2015
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Ed Roach

For more than 25 years, Ed Roach has worked with hundreds of successful small businesses by helping them develop unique brand positioning strategies that differentiate them from their competition. Ed appreciates working with companies who see the value of going beyond mere slogans and have a desire to sell from compelling positions, and consults predominantly with businesses facilitating his proprietary process, "Brand Navigator." This branding process effectively focuses a company's brand, delivering a positioning strategy that can be taken to their marketplace. He is the author of "101 Branding Tips," a book of practical advice for your brand that you can use today.