Branding22 Aug 2025Simon Druery

The hidden costs of ignoring your Brand (and the ROI you miss)

Ask most organisations to define their brand, and you’ll likely hear about logos, taglines or campaigns. But branding isn’t just what your audience sees, it’s what your people feel. When there’s a disconnect between culture and brand, it creates confusion, misalignment and missed opportunity. And that disconnection doesn’t stay internal. It impacts your reputation, performance and people.

Your employee experience shapes your customer experience. Every interaction, every promise kept (or broken), every feeling created by your team is a reflection of your brand. When your people are aligned and engaged, your brand feels consistent, credible and compelling. When they’re not, that gap becomes obvious. Your brand is what your culture makes it.

Imagine two businesses with similar products, pricing and sales teams. One consistently grows, even in downturns. The other fights for every deal, spends more to win customers, and struggles to keep talent.

The difference? One treats brand as a strategic asset. The other treats it as decoration.

When organisations neglect brand, the cost shows up in subtle but powerful ways: customers see little difference between suppliers, price becomes the battleground, recruitment costs spiral, and teams lack a unifying purpose. Over time, growth slows while costs rise.

That’s the hidden cost of ignoring brand. And the research shows it’s not only real, but measurable.

The Business Case for Brand

Too often, brand is dismissed as “soft” or “creative,” disconnected from hard business metrics. But the evidence tells a different story. Strong brands consistently outperform weaker ones because they deliver clear financial returns:

1. Faster market share growth

Brands that invest above their share of voice see measurable growth. According to research from the LinkedIn B2B Institute and IPA, for every 10% increase in “excess share of voice,” brands gain around 0.7% in market share. In simple terms: the more you invest in being remembered, the faster you grow.

2. Freedom from price pressure

Edelman and McKinsey data show that 80% of B2B buyers will pay more for a trusted brand. That means you don’t have to win by being the cheapest—you can win by being the most trusted.

3. Lower acquisition costs

Google and McKinsey research highlights that strong brands see up to 50% lower customer acquisition costs. Why? Because branded searches convert better. Customers already trust you, so your funnel becomes more efficient.

4. Higher lifetime value

One LinkedIn B2B Institute case study showed that every $1 invested in brand returned $24 in customer lifetime value. While not every brand will achieve that exact return, it demonstrates how perception amplifies long-term revenue.

5. Retention drives profitability

Bain & Company and Harvard Business Review found that a 5% improvement in customer retention can increase profits by 25–95%. When trust drives loyalty, revenue stabilises and compounds.

6. Standing out in a sea of sameness

Harvard Business Review reports that 64% of B2B buyers believe suppliers all look the same. If your brand doesn’t differentiate, you’re just another line item. Perception, not product features, creates distinction.

7. Revenue from consistency

According to Lucidpress (now Marq), companies with consistent branding across channels and touchpoints enjoy 23% higher revenue. Consistency builds recognition, and recognition builds trust.

8. Familiarity wins deals

Google and CEB research shows that 78% of buyers choose from brands they already know. If your brand is invisible, even the best product won’t get considered.

9. Resilience in downturns

Kantar and HBR found that strong brands recover faster during economic shocks. When markets shake, trust provides stability.

The message is clear: brand isn’t a cost centre. It’s a growth engine.

The Human Case: Belonging

The external numbers tell part of the story. But there’s an equally important dimension: how brand performs internally.

Attracting talent

According to LinkedIn Talent Insights and Harvard Business Review, companies with a strong employer brand see 43% lower cost-per-hire. Instead of spending heavily to attract candidates, the right people seek you out.

Retaining knowledge

Turnover falls by 28% in companies with strong employer branding. That means teams stay together longer, knowledge compounds, and culture stabilises.

Unlocking performance

Gallup workplace research shows that aligned and engaged teams deliver 17% more productivity and 21% more profitability. When employees see meaning in their work, they deliver more.

Streamlining operations

When brand is clear, decision-making gets easier. Teams know what the organisation stands for, which reduces friction and accelerates execution.

This is where belonging plays a transformative role. Belonging creates emotional connection. Employees who feel they belong are more committed, more innovative, and more likely to stay. Customers who feel they belong don’t just buy, they advocate.

In short: belonging is what multiplies the ROI of brand.

What leaders should do next

If you treat brand as “fluff,” the costs don’t disappear — they show up elsewhere.

For Customers, the costs appear as:

  • Higher acquisition costs
  • Lower retention and loyalty
  • Pressure to compete on price
  • Difficulty standing out in a crowded market

For Employees, the costs appear as:

  • Slower, more expensive hiring
  • Higher turnover and knowledge loss
  • Weaker engagement and productivity
  • Less alignment across teams

If you treat brand as a strategic asset, you unlock growth, efficiency and resilience.

And if you integrate belonging into your brand — so customers feel they belong with you, and employees feel they belong in your culture — you don’t just grow, you endure.

Because the ROI of branding isn’t just about numbers. It’s about connection. And connection is what makes businesses thrive in the long term.

Bringing it All Together: The Magnetic Brand Builder™

Maximising the ROI of branding takes more than a refreshed logo or a clever campaign. It requires a structured framework that unites insight, strategy, creativity and activation.

That’s why at Belong Creative we developed our Magnetic Brand Builder™ (MBB™) process. For more than 15 years, MBB™ has helped organisations like Allianz and Sydney Airport align their brand with their business goals. It’s a proven methodology with four phases:

  • Evaluate: Understand why people feel they belong with your brand or why they don’t and uncover what makes you distinct.
  • Calibrate: Develop an insight-led CVP or EVP alongside a single-minded ‘Belonging’ Brand Essence.
  • Create: Build a Magnetic Brand identity - visual, verbal and experiential, that attracts your ideal people and repels the rest.
  • Activate: Embed belonging at every touchpoint with our Belonging Growth Engine™, deepening connections and driving compounding growth.

The outcome is an insight-led value proposition and a brand identity that doesn’t just communicate but connects. Because when people belong, your brand creates loyalty, trust and measurable long-term ROI.

Contact Belong Creative at hello@belongcreative.com.au to schedule a free Magnetic Brand Strategy session.

Article by Simon Druery

Simon Druery is Director and Brand Strategist at Belong Creative. What gets him jumping out of bed each day is helping business owners and marketers craft brands that people want to belong to. When he’s not working you can find him travelling Australia in the family caravan and enjoying a tawny port by the fire.