We have heard time and time again how important building a good brand identity is to running and growing a successful business. Essentially, the brand is you. Branding tells your company’s story and is the very first thing that potential customers think of when considering engaging with your organization. Your brand is so much more than just your logo or your mission statement, it is everything that the customer experiences with your company far beyond a simple monetary transaction. Without branding, your business could be lost in the clutter of millions of other businesses around the world.
Here are 10 reasons why branding is important to your business and why it is the starting point for any successful company:
1. Branding communicates a clear story
When your brand is able to tell your story, you show potential customers what makes you, you (or your business in that case). You can show customers why they should work with you and what about your company makes you better than any others in the industry. People are more likely to buy from companies that they know and that make it clear what they stand for. If customers can feel like they can understand and believe in your company, they are more likely to do business with you.
2. Branding gives your customers insight into your company
As we said, the company’s brand is essentially telling its story while also giving it a personality. If you want customers to know what your business is all about, what you do, how you do it, and what you can deliver, then perfecting your brand identity can tell them just that. With a clear and concise brand, customers feel like they can get to know your company and what you stand for before making a purchase. People are more likely to buy from a company that they feel like they can get to know and maintain a relationship with.
3. Branding helps you stand out from your competition
How many shampoo brands can you think of? What was the very first one on your list? There are millions of organizations all around the world that offer a variety of different products and services. In order to break through the clutter and be the company that customers are drawn to, you need to have a brand that grabs their attention. An ultimate goal of your brand should be to reach top-of-mind status, which means that you are the first company that customers think of when they are buying a certain product. Some examples of companies that have achieved this are Coke in the soda industry and Amazon in the online shopping industry. These companies have found incredible success because their brand has helped them reach the top of mind status.
4. Branding provides internal direction and focus
Aside from giving potential customers an idea of what your company is all about, branding can also provide some guidance within the company workforce. When a company has a clear brand and message, it makes it easier for employees to work according to that message. When employees know why a company does what it does, it can help them create their own why. When employees feel like they have a why, they can feel like they have more of an impact on the success of the business and overall feel more motivated to do their best work.
5. Branding builds stronger recognition
How many times have you gone to a store and are overwhelmed by the number of options on the shelves? With competition making it hard to be the only company in an industry, it is important to be a company that customers can recognize. With a clear brand, your product will stand out on the shelf because customers will recognize your logo as it is a symbol for your company. Making sure that every aspect of your company, such as logo, packaging, values, and quality of the product, aligns with your brand identity will build this recognition. While moving through the buyer's journey, your brand wants to be able to move customers from company awareness to company recognition.
6. Branding builds an emotional connection with the consumers
When your brand tells a story, customers feel like they can see the real human motivation to do good work within the company. When a company is able to create a story that relates to and sparks an emotional reaction within a potential customer, then they are invested in the company and why they do what they do. You want consumers to feel good about doing business with your company so that they are more willing to build a relationship with you.
7. Branding builds trust and authenticity
One of the most important feelings that you can introduce to your customers is trust. When customers trust you, they are more willing to build a long-lasting relationship with your company. Having a good brand not only makes a promise to customers but when your company delivers on these promises, trust is built. Companies that make realistic promises show that they are authentic and do not over promise just to win over customers. A good and loyal relationship with customers is essential for success.
8. Branding builds preference
The best thing that someone can say about your product is that it is their favorite. When a product earns the title “favorite” it often means that the consumer will not stray away from the specific product and this could reflect positively on the whole company. Customers will also want to talk about their favorite product which creates positive word-of-mouth promotion. People will share their preferences with friends and family who may feel like they should go out and try the product. Good branding brings products up out of the level of just being an option to the level of being a favorite.
9. Branding makes buying a whole experience
A good brand is about much more than just the product or service, it is about giving the customers a whole experience. Customers want more than just a simple transaction when buying a product, they want to feel like they are involved in the journey of the company that made the product. The excitement that consumers feel about buying a product is a result of the promises of the brand and when consumers find that the product matches up to their excitement, then they have a positive experience.
10. Branding delivers financial results
Of course, the overall goal of any good company is to make money. A good brand makes all of the above things happen which then leads to more sales as customers want to do business with your company. People are more likely to give their effort and money to companies that they can really understand and trust. This can lead to financial growth within the company and create a cycle of satisfying customers and increasing sales.
As you can see, branding is one of the most important aspects of your company and should be taken very seriously when developing your business strategy. Luckily, Skigital is an agency full of knowledgeable team members who pride themselves on their unique and attention grabbing branding development. If you want your branding to be above and beyond the competition, reach out to Skigital or check out our website to get started!