Today, our logo design agency is going to discuss how your logo can directly impact your return on investment. Upon first glance, the answer is quite simple. If you’re buying from a brand and the logo looks poorly designed, then alarm bells often start ringing. It’s easy to think that a cheap logo equals cheap quality. As Thomas John Watson, founder of IBM, once said – “Good design is good business”.
It’s a common stance that people see design as an expenditure, rather than an investment in their brand. It’s easy to see the return on investment in marketing and PR, as a whole, but creative services such as design are often overlooked. In fact, some even see it as an unnecessary luxury. Something that’s surplus to their requirements. Very rarely, for example, will a company build design and branding into any of their significant financial forecasts.
However, studies have shown that design should never be overlooked. Adobe recently discovered that 59% of customers will choose a brand over its competitor based upon good design. A further 45% said they’d be happy to pay more for a product or service that had good design.
The Consequences Of Poor Design
The main reason for hiring a logo design agency is to ensure quality. As a brand, it’s imperative for the financial health of your business that you avoid poor concepts. When a design is created without direction or clarity, it’s impossible to accurately represent the brand and leaves no space to build customer relationships.
In the aforementioned Adobe study, 46% of respondents stated they would not purchase from a brand with poor design. A further 50% admitted that they judge a company based solely upon their marketing materials.
Measuring The ROI Of A Logo Design Agency
At first, it can appear difficult to gauge the ROI that stems from design work. This is predominantly because it’s so easy to see the costs associated with this marketing medium. According to a report from Accenture Strategy, businesses who are ‘design-alert’ see a 125% return on investment. After all, if a design isn’t lucrative, it’s little more than art. Nice-looking art, perhaps, but still purely decorative, nonetheless. Regardless of your size, investing in a logo design agency is vital. If nothing else, purely so you can compete against your design-alert competitors! It’s not unusual for a brand to gain immense value.
Consider designer brands, for instance, where people are quite literally paying to wear the brand – the logo. Or Google, which has become such a major brand in its own right that people use the word in verb form ‘just Google it’. You know your brand is succeeding when you’ve become a verb – Hoover, anybody? On a lesser scale, think of bars and restaurants that Instagram influencers want to be seen in. Everything that a company encompasses is right there within its brand. It all starts with the logo. In conclusion, with a poor logo, you can automatically assume that you’ve lost business. How much? We can’t be certain. We found our client-base almost double in the 18 months after rebranding a few years ago. This is a direct result of our fresh new look. Admittedly quantifying the ROI on a design project can be difficult, but that by no means automatically invalidates its benefit or worth!
The Cost Of Poor Design
We’re assuming you aren’t a Balenciaga, or Nike, though apologies if we’re wrong! Arguably, however, branding for small businesses is equally, if not more important than for those major players. After all, when people buy from a recognised brand, they know exactly what they’re getting. When they make a purchase from a small company, the results are more uncertain. A quality logo offers a sense of comfort and reassurance to the customer. Your logo is a first impression, and as we all know, you don’t get a second chance to make a first impression. A poorly-designed logo shows that you don’t take your brand seriously, and potentially that you’re willing to cut corners. It can even be a sub-conscious thing – your potential customers just know that, for whatever reason, they don’t feel entirely comfortable with your brand. That ‘for whatever reason’?
It’s most likely your logo. A way to consider the potential financial loss is to consider the company connections you stand to lose purely from people who will not take you seriously. Simply because you didn’t take yourself seriously. It can be easy for some to brush all this aside. However, remember it’s even easier for a customer to decide they don’t want to work with you, or purchase from you. The choice is yours! By using a logo design agency, you’ll end up with branding that lasts years, if not decades. If you consider the cost of an excellent logo spread over five or ten years, then you realise it’s an extremely reasonable investment.
Mind Over Matter
Customers now expect amazing design as standard, and that expectant mind-set shows no signs of slowing anytime soon. Companies are now under greater pressure, not only to innovate, but to do so quickly, in order to hold a consumer’s attention for longer. This stretches from the logo design onwards to the branding and marketing materials. When you work with a logo design agency, you can sit back and relax, content in the knowledge that a professional has your company and its identity safe in their care.
Successful businesses, globally, are making huge amounts of money by investing in ‘design thinking’. Time and time again, Fortune 500 companies like Disney, Apple, and IBM have shown the innate value of this kind of business decision. Innovation happens when business viability, customers’ expectations and the feasibility of technology meet. Design-based thinking integrates all three.
Contact Us
If you are looking for a quality logo design agency, then contact our multi-award-winning team. Our prices are transparent and our results speak for themselves. Once you enquire, a member of our senior management team will be in touch within just a few hours. We’ll produce a bespoke proposal within 48 hours following this. Just click here to speak to us, we look forward to hearing from you!