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Better Business by Design

Natasha Zlobec of Phage on why investment in good design can bring huge commercial benefits for your company.

Effective design adds immense value to both products and services and is a crucial element of building a business today, with PIMS (Profit Impact of Market Strategies) research into brands and ROI showing that investment in a business’ image at an early stage can yield a return of up to 38% in sales.

Underestimating the value of effective design means missing out on a valuable opportunity to experience the huge commercial benefits that design can bring to your business: Whether your aim is to promote customer loyalty, encourage new sales, or to raise funds, an appropriate design strategy is now more than ever a key asset when it comes to fulfiling your objectives.

The rise of the lifestyle brand and Ikea culture has led to a significant rise in public visual awareness, and the acceptance of design as integral to modern living is growing. In the last year alone, 74% of rapidly growing businesses increased their spending on design–compared to only 17% of businesses overall–while nine in ten said that design is integral to the running of their operation, clearly illustrating that design is about much more than just window-dressing, and in fact contributes enormously to long-term growth and business success.

Effective use of design provides an invaluable platform for fulfiling your business objectives, from increasing your market penetration to encouraging more productive customer interactions. When informed by clear market knowledge, design will lead your customers through each distinct selling stage, arresting their attention, arousing their interest and encouraging further inspection and ultimately leading to desire for what you are offering and point of sale. But a good brand is about much more than a name, logo or slogan, a good brand will make people feel good about the choice they have made–it will help them make that choice to begin with.

People make decisions based upon the image you present to them and every interaction between you and your audience should be maximised to ensure that you are getting the message right. With a lasting impression made within the first ninety seconds of seeing a business card, brochure, or website, how you choose to express yourself can enhance or reduce the effectiveness of your communications. The heavier the competition you face, the more important a role design will play in differentiating your business, and with more and more choices becoming available you need to grab attention to sell: 64% of rapidly growing businesses have used design, innovation, and creativity to improve their competitiveness over the last three years, compared to only 14% of businesses overall.

A strong identity will express your difference from your competitors every time someone interacts with it: The typeface you use, or the colour of your stationery, will create associations in the minds of those who see it. However, one size does not fit all and to ensure long term commercial success it is important to look closely at your target market to find out what pushes their buttons.

One common problem is that a lot of bad design actually looks quite good. Rather than being let down by aesthetics, its unsuitability stems from its inappropriateness either for its audience or its required purpose. Using orange on your promotional material may be very effective if you are targeting the 10% of the population who are considered trend leaders, but it is the least popular colour amongst adults overall, while an annual report which looks more like an internal newsletter, or marketing material that has been produced on a photocopier, will not promote a professional image of your business to potential sponsors or customers.

Consistency of approach in design will go a long way towards maintaining your customers' perceptions of quality, reliability and continuity. Whether your business is a start-up or has an established record, you will need to spend time and resources to keep your image alive – investment in a corporate identity and logo will benefit your business little if subsequent promotional material is not produced to the same standard.

In today’s society people increasingly identify themselves through patterns of consumption and early investment in an effective brand reaps market share at a later date, with research by the London Business School showing that sales and profits rise an average of 3-4% a year for five years with every 1% of sales invested. While financial accountability is high on the agenda for any business, too much focus on cutting short-term costs can lead to losses in the long-term as you lose out to a more brand savvy competition.

Because your business communicates not only through what it says but through how it says it, you should weigh up carefully the benefits of getting it right against the initial investment cost of getting your corporate communications and marketing material designed and produced professionally, bearing in mind that even by saying nothing you are saying something.

Information was obtained from the following sources:
The Creative Economy–How People Make Money From Ideas, John Howkins, Penguin Press Ltd, 2003
Design in Britain 2003-04, Design Council, Dec 2003
If You’re So Brilliant How Come Your Brand isn’t Working Hard Enough?, Peter Cheverton, Kogan Page Ltd
2002 Pantone Consumer Colour Preference Study, Pantone, June 1996
Design in Britain 2003-04, Design Council, Dec 2003