Latest Blog
The 2 most important objectives for you business
As long as I can remember there has always been an antagonism when it comes down to short and long-term objectives. Some focus primarily on short-term objectives, others disregard anything but long-term objectives. Well, who is right and who is wrong?
Neither of these concepts are wrong or right. Every businessman should always aim for short-term and long-term results in all actions. In my approach and strategies, I always have two key objectives and I believe any businessman can share these objectives. I always aim at immediate sales results and long-term brand equity.
Let me give my definition of brand equity. For me brand equity is the value of a brand as a result of its irreplaceable status by another brand. The more irreplaceable a brand is, the higher the brand equity, the more replaceable a brand the lower the brand equity.
Why is brand equity so important for companies? Let me put it this way: what is the point investing in marketing to achieve quarterly results and after 10 years finding out that you need to invest as much or more marketing budget to achieve your quarterly sales? In other words, your company has not increased its customer equity. What is the point of investing marketing budget to get new customers, when after 10 years you still have the chance of loosing them?
What will be the value of your company if by the time you want to sell it, your brand and customer equity is low? Consider brand and customer equity as the fruit of hard years of work. Consider it as your pension fund.
If you want to make money when selling your company, you better make sure that you customers would not want to replace your company or brand by another.
How do you generate brand equity? Here are a few suggestions:
* Make sure your brand-DNA is strong (coherent), with clear values, vocations and visions.
* Make sure that in all the expressions of your brand you are consistent with your brand-DNA
* Make sure that your brand has an unique personality
* Make sure that in every actions towards the customers, they can experience that personality
* Make sure your brand is altruistic
* Make sure your brand improves the life of your customers
* Make sure your brand can deliver unique benefits
* Be integer as a brand
* Keep all your promises
* Make sure you invest in durable customer relationships
* Make sure your brand is alive and always improving
* Don’t let advertising agencies redefine your brand. Your brand is your responsibility
* Never compromise your brand equity for short-term profit
If every businessman would focus on only these 2 objectives then he will be successful in the long run. Every time you develop a concept, set objectives, introduce new products or services, advertise your brand or hire new people, ask yourself 2 simple questions; am I going to attain my sales targets and increase my brand equity at the same time? If one does not truly invest in brand equity, then all you will get is short-term benefits, with short-term security and short-term return.