In our client work, not only do we help people to build brands, we also help them decide what type of brand to build. In the brand building process, there are many positioning approaches you can choose. Some will focus on price, desiring a brand that is always viewed as the most affordable option, while others will want to position their brand as the most reliable option, focusing on functional qualities. A third option is to position your brand as a premium brand.

How do you position your brand as premium? A premium brand is one that a consumer is willing to pay more for (a premium) because it is perceived to be better than cheaper options and provides certain intangible, emotional benefits. Consumers believe they are receiving something valuable from their purchase of (and relationship with) the premium brand and this justifies the higher cost. Though it may cost the brand more to produce and promote the premium product or service, they profit nonetheless because of the increased price they are able to charge for that premium.

Any brand can take the premium approach when trying to position an individual product or service, but when it comes to positioning your entire business as a premium brand, other considerations are in play. In today’s marketplace, what helps shape a brand’s perception more than anything is the brand experience that is delivered alongside a product or service. Everyone wants to have a brand that is highly-regarded and highly-sought out in its industry. This doesn’t just happen overnight.

As a business owner, you have many decisions to make, including whether you want to present a premium brand or just premium-priced products or services. One is a function of expression, the other a function of experience. Whichever path you choose, your decision must be well-thought out, communicated well, and then executed well. Customers decide whether a brand is a premium brand long before the point of purchase, and your business can either solidify that perception or detract from it through effective branding.

The desire to build a premium brand is generally a concern for B2C brands, but it is something that B2B brands can and should consider as well. It’s not just for fashion or consumer goods, this approach can be developed for any industry or vertical. Choosing to be identified and positioned as a premium brand should be done thoughtfully and strategically. So what are the things that a B2B service brand should consider when trying to position itself as a premium brand? Here are three considerations.

Consider the competitive landscape.

Who already occupies the premium position in your market? Is there space for your brand? Can you or should you try to compete? Here is where a brand positioning matrix is helpful. A positioning matrix is a helpful brand strategy tool that plots two or more competing entities together along with brand attributes and characteristics. This exercise can help illustrate graphically where competitors have positioned themselves and where opportunities lie for your business to pursue and achieve a premium perception.

Consider how you can truly differentiate.

The three qualities that make something a true differentiator are: Valid, Valuable, and Verifiable. Valid means that the differentiator is true, rooted in reality. Valuable means it must be relevant, focused around what actually matters to customers. Verifiable means it must be provable, able to be validated through data, statistics, testimonials, etc. You should conduct research to determine how much more valuable differentiators are for your business in light of what your customers are willing to pay. As it relates to your business, you will need to ask yourself, “What makes people willing to pay more?”

Consider how you can elevate your experience.

Premium implies certain intangible, emotional benefits. Think about what the benefits are that truly matter to your customer and that they’d be willing to pay that premium price point for. How are you helping them feel better about their life/experience? Among the most valuable benefits that contribute to an elevated experience are ease of use, improved performance, time and cost savings (over time), and sustainable, ethically-sourced or locally-sourced products or components. Though it may be tempting to communicate these outcomes as features, you need to be sure they are communicated as benefits, with specific, positive value for your ideal consumer.

Customer experience and their engagement with your all your brand’s touchpoints throughout the entire sales lifespan, goes a long way toward solidifying the work you’ve done to position your brand as a premium brand. Experience is hugely important to today’s consumer, in many cases, more so than price. In fact, a recent Walker study highlighted how customer experience has essentially overtaken price and product as the key brand differentiator. In addition, according to research from PWC,  86% of buyers are willing to pay more for a great customer experience. The more expensive the item, the more they are willing to pay.

In our next blog post, we’ll look at a few specific, meaningful ways that businesses enhance the sense of value in their brand and transform it into a premium brand.

Enthuse Creative can help

Enthuse Creative can help you develop a successful brand strategy for your new or developing premium brand. Reach out to us today for a free consultation.