The other day, I was discussing branding with a fellow entrepreneur, and the term “soft values” kept coming up. Is a company’s visual identity really just a “soft value”? How much actual benefit can a business owner see from high-quality branding? Below, based on a very simple calculation, you can see how several websites multiplied their sales with the exact same traffic and advertising budget. What did we change? We refreshed the branding and updated the e-commerce design.
Strong branding delivers better results with the same ad budget and builds trust
In the 2021 Edelman Trust Barometer study, 81% of respondents stated that trust is one of the main factors when making a purchase. A memorable visual identity feels trustworthy to consumers and increases the effectiveness of advertisements. People are more likely to click on ads that look professional. It is entirely realistic that by updating your branding, you can get 2–3x more customers to your website for the same budget. In an already cluttered and robust advertising world, it is very difficult to stand out, but it is not impossible. A strong visual identity helps immensely here, providing specific rules for how the company’s advertisements should look. This allows you to maintain a consistent line and ensure that customers recognize your ads and click on them.
Reduces hiring time and attracts talent
Contemporary and modern branding appears reliable and sends a clear signal to talent that the company keeps up with the times. It suggests that the company has likely also invested in employee well-being and improving the customer experience. Just as packaging influences our purchasing decisions in a store, a company’s appearance influences decisions when looking around the job market. According to a LinkedIn study, proper branding helps find the right talent 2x faster and at half the cost. Discussions with various recruitment firms have also highlighted that clients should actually review their branding first, as results with a current poor solution can be very weak.
Käthe-Riin, Co-founder of TalentHub:
“Top performers look for companies where they can work not only on a great product but also in an environment that is inspiring and whose values align with their own—and this must be reflected outwardly to the candidate. If a company has a great idea but its presentation is weak or the branding does not inspire confidence, it can seriously affect the interest and trust of job seekers. For candidates, it is important to find a place that not only offers a job but inspires them to give their best every day.”
Reduces website bounce rate
Bounce rate is a term used in analytics that measures how many visitors leave a page immediately after their initial view. The higher the number, the worse the situation. We all want visitors coming to the site to spend time there and leave after making a purchase or an inquiry. A person judges a company’s website within the first few milliseconds. If the design is outdated, trust is quickly lost and they won’t stay on the page any longer. Due to a high bounce rate, you could be throwing thousands of euros away every year without any benefit to your business—all because the branding is outdated and mediocre.
Increases website sales or inquiries
A Stanford study shows that a high-quality website appearance significantly affects trust and increases sales figures. A visual identity defines the color palette, fonts, and usage rules upon which the website design is based. When the foundation is properly laid, you can be sure the website will look high-quality and modern. None of us want to work with a partner whose website feels like it’s from the last century or buy from a site that resembles a telemarketing catalog. We are used to using software, smart devices, and websites that are modern and innovative; if something still swims against the current of that experience, our brain categorizes it into the “unsafe” and “outdated” folder.
A modern website works in your company’s favor. You can expect a much better user experience, which makes your customers happy. Additionally, an informative and clear website frees up your employees’ resources, as customers can find answers to many questions independently. You will certainly see an increase in the number of inquiries. In e-commerce, the average order value and the conversion rate—the percentage of visitors who make a purchase—also rise. From experience, I can say that the average conversion rate for e-shops reaching us is below 2%, which is mediocre at best. After rebranding and developing a new e-shop, the conversion rate rises to around 4–5%. But what does such a seemingly small few-percent increase mean for an entrepreneur?
If a site gets 10,000 visits per month, the average purchase value is €65, and the conversion rate is 2%, it means there are 10,000 x 0.02 = 200 buyers, making total purchases of 200 x €65 = €13,000. By raising the conversion rate to just 3%, there are 300 buyers from the exact same traffic, totaling €19,500 in sales. At 5%, we are already talking about €32,500 in sales, without increasing advertising spend or traffic by a single cent.
The same calculation can be applied to inquiries. Let’s say Meelis sells metal fences and his average sale is €6,000. Currently, 1,000 people visit Meelis’s website per month, and 2% of them—20 people—make an inquiry. Let’s pessimistically assume Meelis wins 2 out of those 20 offers. Thus, his website generates €12,000 in sales every month. However, if Meelis had a very well-made website, we could expect 10% of visitors to make an inquiry. This means that with the exact same traffic, it is possible for Meelis to sell 5x more metal fences—totaling €60,000. All because Meelis invested in high-quality branding and a website that works for him.
Allows you to charge more
Strong and distinctive branding allows you to charge more for your product or service and avoids being in a constant “price war.” When customers perceive the value offered clearly, they are much more willing to pay for the quality that the branding radiates. With strong branding, a strong brand begins to emerge, around which loyal fans gather. Such fans are not interested in factors like price or availability; they buy with their hearts.
In conclusion
I encourage you to run some calculations yourself based on our examples and think about how many months it would take for an investment in a visual identity refresh to pay for itself. Analyze whether your company would benefit if you didn’t have to fight on price all the time or if your ads brought more traffic to your website for the same money. I believe “soft values” is not a term that can describe branding and the very concrete profitable figures that emerge from it. In 12 years, I have not seen a company lose customers or see their numbers sink after a branding refresh. However, we have seen many companies where, due to strong branding, they have:
- Achieved a 3X increase in turnover and profit within 2 years
- Had wholesalers queuing up at their door
- Sold out all stock through pre-orders thanks to strong branding
- Become the market leader in their field
- Attracted new target groups who previously did not care for the product
…what are your goals and when shall we start achieving them? Explore Hable’s services.
