Make your brand irresistible: Drive brand value

Consumer behavior has shifted significantly in recent years. Economic uncertainty, changing values, and evolving priorities mean consumers are more discerning with their spending. Brands need a compelling reason to draw consumers back not only to their brand, but also the category itself.

Every day consumers are bombarded with choices. Cutting through the noise and capturing their attention requires more than just a quality product and competitive price. Brands need to differentiate themselves to stand out.

This is where brand value comes in; it’s not just about what you offer, but also how your brand is perceived. This perception is built on differentiation – what makes your brand stand out from the crowd? Are you known for your exceptional customer service? Your commitment to sustainability? Your innovative approach?

This unique identity is crucial for long-term success. In a crowded marketplace, your customers need a reason to choose you, and that reason lies in the sweet spot where your authentic brand identity intersects with their values. A strong brand identity that reflects the needs and desires of your target audience fosters a powerful connection. This connection, built on shared values and a genuine understanding of the consumer, drives customer loyalty and, ultimately, fuels business growth.

Unlock the ‘why’ behind consumer choice

To truly connect with your audience, delve deeper into consumer motivations and perceptions. Only when you understand the ‘why’ behind consumer actions can you create products, services, and experiences that excite, inspire, and resonate.

Your consumer’s connection to your brand might be influenced by factors such as:

• Momentum: Is your brand perceived as innovative and trendsetting?
• ‘Premiumness’: Are consumers willing to pay a premium for your brand’s perceived quality or exclusivity?
• Confidence: Do consumers trust your brand to deliver on its promises?
• Sustainability: Does your brand align with consumers’ values regarding environmental and social responsibility?

Knowing which factors are most influential to your unique brand value helps you focus your efforts on what truly matters to your target audience.

How do you know what’s driving your brand value?

Quantitative and qualitative approaches can be taken to establish, and quantify, the impact of your brand drivers. One tool that is pivotal in this context is key driver analysis (KDA). KDA acts as a commercial compass to navigate the complex network of factors that are important to your customers. These factors can be direct or indirect, rational or emotional, and even tangible or intangible. Once you understand these multifaceted drivers, you can create more impactful marketing strategies.

SKIM’s TrendsLab has recently conducted key driver analysis across a range of categories to understand what’s driving consumers’ purchase decisions today, as well as what drives their willingness to pay a premium.

For example, in the skincare market, our research uncovered that consumers today seek brands that connect with them on a deeper level. While 50-60% of skincare consumers remain loyal to their favorite brands, the interplay between consumer perceptions of brand momentum and innovation increases their willingness to pay a premium, even more so than brand prestige alone. A 10% advantage in innovation can drive almost double the willingness to pay more compared to a 10% advantage in brand ‘premiumness’ (3.2%). For more on this, reach out to see our brand value simulator in action.

The key to effective marketing strategies

By understanding the ‘why’ behind consumer behavior, brands can develop more effective and targeted strategies to engage consumers.

For example, if your customers are…

• Driven by innovation and/or brand momentum, your innovation pipeline needs to push the boundaries and exceed expectations. However, don’t forget to communicate these advancements effectively! This goes beyond simply announcing new features. Consider the subtle cues that reinforce your innovative image. Do your communications – from website copy to marketing materials – utilize language and visuals that align with this positioning? Modern fonts, dynamic graphics, and forward-looking language all contribute to a cohesive message of innovation. By consistently signaling innovation through these subtle semiotic choices, you create a powerful and enduring brand perception.

• Price-sensitive but also value quality and brand reputation, your pricing strategy needs to strike a delicate balance between affordability and premium positioning. This might involve offering value packs, tiered pricing options, or highlighting the long-term value and cost-effectiveness of your products.

• Influenced by emotional and authentic storytelling, your communication strategy needs to prioritize building relationships and fostering trust. This could involve crafting compelling narratives that resonate with your target audience, creating personalized experiences, and fostering a sense of community around your brand.

By aligning your strategies with the specific drivers of your target audience, and by focusing on the drivers you can uniquely own within your category, you can create a more compelling and irresistible brand experience. This targeted approach not only strengthens your brand value through differentiation, but also drives sustainable success.

Make your brand irresistible

In our 5-step strategic guide, we help you to take a holistic approach to driving brand value. From the critical first step of defining the right business questions, through to strategy development and market simulations, download our guide to help you to unlock your brand’s full potential.

Would you like to discuss how to elevate your brand with a SKIM expert?

Arrange a live walkthrough of a use case example with a brand value simulator that shows how a deeper understanding of consumer motivations can provide the information you need to maximize conversions and drive sustainable growth.