Any business executive or marketing professional could tell you how important branding is to their business.
According to the 2019 Edelman Trust Barometer survey, 81 percent of consumers say they must be able to trust a brand before buying.
If you are new to branding and would like to learn more about it, keep reading this guide to learn what the benefits of branding are and how it can help your business.
What Is Branding?
Your brand is one of the most, if not the most, important aspects of your business. It tells customers who you are and what you can offer.
Your brand is what makes you different than the competition. Simply put, branding is what connects you to the consumer. Many different aspects of the business will go into building the brand, including
- Website design
- Logo design
- Customer service
- Company culture
- Product quality and design
- Social media presence
You get the idea; building a brand is not easy. It takes many different departments working collectively on the same vision to create value for their customers.
As Scott Cook, co-founder of Intuit, once said: “A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is.”
Why Is Branding Important
Building a brand is a critical step in growing your business. Without a brand, you are just another company that sells a product.
A good brand can help you get a step ahead of the competition and attract new customers. It could help you grow your business beyond what you could ever imagine, and without one, it could hold your company back from its true potential.
If you are considering branding your business, take a look at the benefits a brand can bring and decide for yourself.
Makes You Unique
One of the significant advantages of having a good brand is that it helps you stand out amongst the competition.
When consumers are deciding what product to choose, many times, the product is the same or very similar: the only difference is the brand itself.
With a good brand, consumers will immediately recognize the company and most likely go with their product over a no-name product. According to a study by Wunderman, a leading digital agency company, 89 percent of American consumers are loyal to brands that they share values with.
Having a good brand can significantly increase the value of your company. Think about companies like Apple, one of the highest valued companies ever, has such a strong brand that users will buy a new phone every time the new iPhone is released.
Not only that, with a brand like Apple, you can determine the price of the products, and consumers will still buy it. When you have a strong brand, people will pay more for the value of that brand.
Apple’s customers look at the brand as being innovative, modern, and sophisticated. Naturally, consumers who fit the part or want to be perceived as those things will buy Apple products.
Having a clear and strong brand gives off the impression you know what you are talking about.
People will flock to your brand for advice on subjects they consider you to be professional at.
Builds Customer Loyalty
A great brand will not only attract new customers, but it will also keep current consumers coming back for more.
Building customer loyalty is not an easy thing to do. Most consumers are already wary of a new brand because they are sometimes perceived as trying to take their money.
Good brands will have things like memberships, and customer rewards programs to keep them connected to the brand. Many companies find success with social media when it comes to customer loyalty.
A great example of this is Starbucks. Starbucks launched the My Starbucks Rewards program through its app. This way, customers don’t need any cards and don’t have to remember any passwords. To earn points, customers must order or pay with the app creating an easy way to manage users’ data.
A successful advertising campaign will not only explain why you need the product but should also share the companies traits and values.
The advertisements your team puts out will be a direct reflection of how your company is perceived.
A recent example of this is Peloton, who sells premium stationary exercise bikes, was criticized for an advertisement they put out. People were outraged, calling it “sexist” and “horrifying.” Peleton was all over the news for an ad that many rejected.
When developing an advertising campaign, it’s essential to look at it through the eyes of the consumers and try to put yourself in their position. So many people rejected the advertisement over issues with body-shaming and feeling the need to fit in, which is a big revolution happening in society.
Having a successful brand comes with many advantages, for one individual will more likely choose a company with a good brand than one without.
If your company has the right brand name, not only will you attract more talent, it will cost less as well.
A recent study by the Harvard Business Review in conjunction with ICM Unlimited concluded that businesses with a poor reputation or bad branding typically spend at least 10 percent more per hire.
Having a good brand name is a win-win for your business.
Final Thoughts on Benefits of Branding
The benefits of branding speak for themselves. Having a successful brand name will save you much needed time and resources.
The importance of branding cannot be understated. If you want to survive in a highly competitive industry, you will need to develop a successful brand and put your company in a position to grow.
For more informative articles like this one, check out the rest of our website!