1. Do you need a new logo?
Now before we jump into whether your business is missing out on millions in opportunity cost we first need to establish whether your current logo is up to date and whether it could be the cause of potential missed revenue.
So we need to establish what makes a good logo and what makes a bad logo:
- A logos purpose is to identify, not to inform (Sagi Haviv). Meaning that the mark of the logo doesn’t need to describe what your business does, it needs must to be a mark that people can identify and associate to your business. All the top logos in the world do this, for example; apple, national geographic, nike and chase bank. What does an apple have to do with selling computers? The informative part comes within the brand messaging to their audience.
- Simplicity. It’s much harder to design with simplicity. A logo must be rememberable therefore the less amount of information it gives you the easier it is to remember and reproduce. Once again all of the logos stated above are minimal and highly rememberable marks.
- A further reason as to why a logo mark must be simple is due to the different applications it will have. Whether that be in a small space on a digital format or printed and embroidered on uniform, complicated and intricate logos don’t work with these applications.
2. Why It’s Important To Have An Up To Date Logo
So why is it important to have an up to date logo for your business? The answer is simple … you make more money! And if you are still using your outdated logo then your business could be losing millions in opportunity cost!
So how will having a new logo increase my revenue? Well here’s how:
- It will make your business appear more professional and legitimate with a contemporary logo. Therefore customer opting to use your services rather than your competition as the customer will part ways with their money for the safest option, not necessarily the best option.
- Stand out from competition. A fairly straight forward point, but a key point none the less. You only have to stand out by an eighth of an inch to be noticed. Setting yourself apart from the competition is key, and that applies on a visual level too, it helps your business to be the one thats remembered.
- Start targeting the right audience. A well designed logo will attract and aim to target the audience that your business is aimed towards.
- It’s the face of your business. It’s the first interaction potential customers have with your business. The First interaction is key, as within those first seconds an assumption or judgement has already been made within the potential customer’s mind.
- It also shows that you care about your business, and if you don’t care about it why should others care and give you their money?
- It creates a strong visual identity that customers can buy into and you can start to cultivate a strong community within your audience.
- Grants you the ability to have an online presence - which is a must nowadays.
3. What Is Opportunity Cost?
So what is opportunity cost? Opportunity cost is the potential gain that is missed due to taking an alternative decision. For example, spending time doing one task which could be handled by an employee rather than focusing on various other tasks which stand to give you more gain.
4. Lets Do The Math
So it’s hard to measure success in a qualitative way, so let’s set a quantitive goal.
Studies have found that:
- 60% of consumers say they avoid brands that have odd, unattractive, or unappealing logos, regardless if they received good reviews. (Study Finds)
- Presenting a brand consistently across all platforms can increase revenue by up to 23%. (Forbes)
If as the study above says and that 60% of consumers avoid brands that have outdated, unattractive, or unappealing logos, regardless if they received good reviews, in other words you have only captured 40% of your potential customer base. Now capturing 100% of your customer base is un-realistic, but if you could improve upon a 40% capture and increase sales just by an attainable amount. For argument sake, your business generates £150,000 amount in monthly income, if by having a new logo you could increase that amount by 5%-10%. Which is between £18,750 and £37,500 per month, so in a year you would be making an extra £225,000 - £450,000!
So is an outdated logo really worth keeping? How much would you invest if you stand to make £450,000, 30% maybe 10%? You decide.
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