Culture shock is a phenomenon typically associated with travel and experiencing new environments.
However, it can easily be applied to other contexts beyond personal adventures. In the business world, when an organization lacks a strong and cohesive brand culture, it can experience a form of culture shock.
This article explores the importance of a strong culture in maximizing brand value. Backed by statistics, best practices, and diverse perspectives, we examine the importance of brand culture and how it can help your brand set itself apart from competitors.
The Power of Brand Culture
Brand culture encompasses the collective values and behaviors of a company, its employees, and its customers. It plays a significant role in shaping a brand’s reputation and directly impacts the audience’s perception of that brand. As Maya Angelou wisely noted
“People will forget what you said. People will forget what you did. But people will never forget how you made them feel.”
Therefore, it is vital for both employers and employees to actively embody and embrace their brand identity in their day-to-day activities, creating an ideal environment where the organization can thrive.
A strong brand culture serves as the backbone of an organization, permeating all aspects of its operations and interactions. Culture is the link that connects employees, influences decision-making, and impacts the brand’s reputation. According to a study conducted by Deloitte, companies with strong cultures are more likely to experience revenue growth and have higher levels of customer satisfaction.
At Brand Lounge, we understand that a strong organizational culture is essential for building a successful brand. That’s why we place great importance on ensuring that our four dimensions of differentiation include culture, so every representation of your brand, both digital and physical, can be an opportunity to showcase a strong and vibrant culture.
Employee Engagement and Retention
A strong brand culture plays a crucial role in engaging and retaining top talent. When employees feel a strong sense of connection to the brand’s values and purpose, they are more motivated, productive, and likely to stay with the company.
Research from Gallup indicates that companies with highly engaged employees outperform their competitors by 147%. Moreover, a study by Glassdoor found that 77% of employees consider a company’s culture before applying for a job. When employees feel aligned with their organization’s culture, turnover rates decrease significantly. 88% of respondents in a recent survey by Paul Polman considered employer values crucial in choosing where to work, with 73% valuing environmental dedication and 75% prioritizing social equality.
When employees are aligned with the brand culture, they become your first ambassadors to the outside world. It is a more rewarding investment when a company decides to invest in employees than in new products and services, which in turn leads to a higher return on investment.
Enhancing Customer Experience
A robust brand culture goes beyond the internal culture and significantly impacts the customer experience. After all, a brand is what its consumers perceive it as – it lives in the minds of the consumers.
According to a survey conducted by Wunderman, 89% of customers are more loyal to companies that share their values, highlighting the importance of aligning brand culture with customer expectations. It is also important to note that millennials and Gen Z consumers, the main drivers of the consumer markets, tend to favor brands that align directly with their values and beliefs.
This illustrates that companies with healthy and balanced brand cultures are more likely to establish authentic connections with their customers, leading to increased loyalty and advocacy. These connections are built upon trust and an appreciation for the company’s values.
Diversity and Inclusion
The significance of diversity and inclusion in shaping a healthy brand culture has grown substantially in recent years.
Diversity cultivates an environment where individuals from various backgrounds, perspectives, and experiences feel welcome and valued. McKinsey & Company research shows that companies with a diverse workforce are more likely to outperform their competitors and have a 35% higher financial return in comparison to less diverse organizations.
Diversity in a company not only fosters creativity and innovation but also enhances the brand’s appeal to a wider range of consumers. It enables the brand to connect with diverse customer segments, ultimately increasing market share and profitability.
Differentiation and Innovation
In an increasingly competitive marketplace, a strong brand culture becomes a powerful tool for growth. A study by MIT Sloan Management Review has found that innovative cultures are more likely to experience financial success and market leadership. It sets the foundation for a unique identity that differentiates the brand from its competitors. By fostering a culture of innovation and collaboration, brands can create a fertile ground for creativity and fresh ideas.
Brands with innovative cultures also tend to be more adaptable and resilient in the face of industry and global disruptions. Their employees are more likely to embrace change and actively look for innovative solutions, positioning the brand as an industry leader.
Brand and Core Values
A strong brand culture actively embodies a set of values and principles that go beyond words written on a website. Organizations need to undergo a process of introspection to identify the values and beliefs that define how and what they stand for.
Once those values are identified, they must be lived authentically and permeate through every cornerstone of the organization. This means that the brand culture design, writing style, and how employees are treated must all follow the chosen values thoroughly and truthfully.
In many cases, strong brands have differentiated themselves by cultivating a strong brand culture. Zappos, with its people-centric culture, and Apple, with its strong culture of innovation, are excellent examples of culture-driven brands.
Developing your Brand Culture
We live in times where a single misstep can lead to a brand’s downfall, paying attention to and nurturing an authentic brand culture is a vital business strategy. A strong brand culture is not just a choice; it’s a prerequisite to thrive in the modern business landscape. It enhances employee engagement and retention, elevates the customer experience, and fosters innovation.
At Brand Lounge, we recognize the critical role of brand culture in maximizing brand value. Our proven expertise in helping brands develop and implement effective culture strategies has resulted in notable achievements for clients such as Hayat Biotech, RAKEZ, and Salehiya to name a few.
To learn more about our approach and explore how we can maximize your brand culture, visit our culture practice and connect with us to schedule a consultation with our culture strategy experts. One thing is for sure— your culture is your brand.
