Every business owner, entrepreneur, and marketing director has heard the phrase branding is everything at least once in their life, and that’s because it’s true. Branding encompasses everything about your business: from your packaging to your marketing materials to your pricing strategy to your website design, every detail comes together to create the image of your brand. But what exactly does that mean? And why is branding so important?
1) Branding Builds Trust
When customers interact with a business or product for which they’ve had previous experience, it builds trust in both them and your brand. This trust can lead to repeat purchases and more sales. A strong brand builds loyalty, meaning you have repeat customers who buy from you time and again.
2) Branding Builds Loyalty
The customers you want to see return to your business on a regular basis are far more likely to do so if they’re loyal, and branding is one of several ways you can cultivate loyalty in a customer. Not only will they choose your business over another option when given two similar options, but they’ll also be happy with their experience every time they come in.
3) Branding Helps Scale Your Business
In order to scale your business, you need to be sure that people can find you. Having a strong brand increases your visibility and makes it easier for people to recognize you and your business. Additionally, having a strong brand means that people are more likely to remember you when they’re looking for someone to do business with in a particular industry. Brands also play an important role in generating sales leads because brands help identify what products or services your company offers and who it’s geared toward.
4) Branding Determines Pricing
We should all try to make a profit, right? But pricing your products or services too high or too low isn’t going to help you succeed. If you want customers to give you their money, it’s a good idea to know what they’re willing and able to pay for. While each business is different, there are two easy ways of determining how much of a profit margin is acceptable for any given market: cost-plus and price-to-value.
5) Branding Influences Public Perception
A positive perception of your brand will boost customer loyalty and make customers want to do business with you. Conversely, an ill-regarded brand can result in negative reviews on social media sites like Yelp, which may impact sales. The way a company presents itself has a direct effect on its public perception. For instance, over 70% of consumers say they’ve avoided certain brands because of poor reviews they’ve read online. A well-made brand will also make it easier for people to remember who you are and what you offer—again making it more likely that they’ll choose to buy from you instead of someone else.
6) Branding Influences Decision Making Process
New to buying things? What are you looking for in a purchase? What do you like and dislike about products before you buy them? How do you make your decision when purchasing? If it’s something really big, who advises you on what to buy and why? All of these factors are influenced by branding. We cannot escape it no matter how much we try. So let’s take a closer look at what branding is, why it matters, and how it impacts our lives.
7) Branding Allows You to Gain a Competitive Advantage
A brand is what people say about you when you’re not in the room. That’s why an effective brand allows your customers to think positively of your business and what it has to offer. This, in turn, will attract more potential customers than its competitors. In short, a strong branding strategy can make all of the difference between mediocre and outstanding sales results.
8) Branding Creates Personality and Credibility
A brand is more than a logo. In fact, logo means word mark. A brand can be described as everything that makes up your business. This includes products and services, interactions with customers, marketing campaigns, and even office culture. It’s crucial to develop a strong personal brand so that you can connect with people on an emotional level. If you want to be trusted in your industry and differentiate yourself from competitors, it’s essential that you invest time into developing your own unique style—and setting yourself apart through various aspects of your company.
9) Brand Reputation Spreads Online - Positively and
Whether you're a small business, an up-and-coming start-up or even a major corporation, it's important to be aware of your online brand reputation. Social media makes it easier than ever to get information about businesses, which is both good and bad. It's good because if people love your product or service, they can tell everyone by posting on Facebook or tweeting your name. The downside is that if someone has a negative experience with your company, they can do just as much damage as one who praises you (just in different ways). People now have access to millions of opinions on social media and you need to know how that affects your overall image.
10) Brand Identity Tells the Story of Your Business
A brand identity is like a full-length biography of your business. It’s what potential customers and investors will use to decide whether or not they want to do business with you. Without brand identity, it’s difficult for people to know who you are and what you stand for—which means they may be less likely to trust your products or services and seek out your company when they need something. You might think that you don’t have an identity just yet, but that shouldn’t stop you from working toward one; many companies start by creating a mission statement.