3 min read
Branding is the tactic that keeps the engines of a successful company running. When infused in all aspects of the business, branding creates value that speaks to the target audience and contributes to better customer experiences.
In spite of the added advantages, many marketers have to answer the same old question from higher management: Why is branding important?
In short, because it governs the perception of your customers, prospects, and employees alike. It is the underlying force that can propel your products to new heights and drive influencing behavior. And it allows you to stand out in an increasingly crowded market, clarify your product offering, and explain what makes you the best choice.
Example: Apple has one of the strongest brand identity
That’s why winning companies put branding at the heart of their products and services. They understand the value it generates. They commit to building the necessary resources and adjusting the business operations to incorporate branded documents. And they work with the right tools in order to achieve the right branding and logo design — at scale.
But before you get started with your own branding strategy, let’s explore the importance of branding in more detail and why businesses should invest in it.
The Power of Branding
Many customers decide if they want to make a purchase before they even see the product in person. Your brand reputation could make or break that decision. Here are the top reasons that should put the Why is branding important? question to rest — once and for all.
1. Branding Puts Your Business on the Map
That’s right! Branding helps you increase brand awareness by letting your business stay top of mind with consumers. At the end of the day, no matter how much you invest in product quality, advertising, or social media posts, your business will not reach its full potential unless you have a brand that pushes it forward. It’s the key to setting yourself apart.
Example: Can you still remember these brands with their signature color and shape?
Ultimately, your brand leverages your name, logo, offerings, and messages in order to create a memorable experience for your audience and customers. That’s why all these elements should be powerful and easily memorable in order to make a strong impression from a first glance. If you go for a signature color, this could improve brand recognition by 80%, so don’t be afraid of bold contrasts.
And all this feeds into higher conversion rates. In fact, 75% of shoppers are more inclined to make a purchase from a brand they recognize. So having a strong brand identity pays off.
2. Branding Can Help You Grow
With a strong branding strategy, you’re not just setting a foothold in the marketplace. It’s the starting point for future ventures and opportunities. This is the fastest way to get from niche to mainstream and help your business expand.
One way to do this would be to diversify your product offering. Or establish a market presence abroad, or in a different region. Either way, you will have more leverage in the industry if you already have a strong brand presence. And in turn, a strong market presence is likely to attract investors that can add new capital to your expansion plans.
3. Branding Increases Your Customer Base
Infusing your brand identity in all areas of the business will not only help retain existing customers but also gain new ones. So much so that you can experience a 33% increase in revenue if you project a consistent brand image.
Indeed, brand consistency is important because it helps customers recognize and remember you. This is increasingly relevant, considering that you have to establish a cross-channel presence that promotes the same brand values, images, and messaging.
If this presence provides a consistent experience to your prospects, you generate a positive impression among customers, which in turn leads to higher sales. In a way, they are more likely to buy from you because you are familiar and reliable. And once your brand name becomes commonplace, you know you are well on your way to word of mouth marketing success.
4. Branding Makes You Trustworthy
What do customers want? At a first glance, they are looking to brands to meet their needs. But actually, it’s more than that. They are looking for brands to trust. In fact, 81% consumers will not make a purchase from a brand they do not trust.
That’s why it makes business sense to build a strong brand identity that will resonate with prospects and turn them into customers. To this end, you need a professional appearance consolidated by strong branding elements so that you can build trust based on the fundamentals that matter most to your target audience.
5. Branding Helps You Hire Top Talent
A story might make up your brand, but your people make up your business. You need top talent to sustain your business and drive future growth. But what if you’d let this top talent come to you?
With a strong brand and corporate identity, you have higher leverage when it comes to the talent pool. After all, everyone would like to work for a brand that is reputable and recognizable.
To make sure you’re on the right track, integrate the spirit of your brand into the employee experience as well. By projecting consistent values and messages across all touchpoints, candidates know what to expect, and they know what they need to do in order to perform.
Example: Google currently receives more than two million job applications each year.
Strong branding not only helps you become the employer of choice for top-professionals, but also contributes to higher employee engagement and retention. And engaged employees are likely to speak highly of you as a business, which could turn them into brand advocates.
Good Branding — How Can You Measure It?
Your brand is about what you want your business to represent. You put your business story and core values at the heart of the business in order to let your brand shine through and create a vivid image in the minds of the consumers.
Now, you’ve seen what you can do with a strong branding strategy. But how can you measure the progress within your organization? How do you know if your brand is set to conquer the masses and become top of mind?
In short, how can you justify why is branding important? Here are some of the indications:
- Higher logo recognition
- Increase in direct contacts
- Faster close rates
- More engagement on your social media channels
- More job applications
- Higher customer retention rates
Ultimately, the benefits of being brand-focused will help you amplify your business and consolidate your presence on the market.
NEXT: Branding examples ⟶
Whether you want to grasp the basics of branding for your new business, want to work on your brand strategy, are stuck with your brand visuals or want to find branding tips on how to grow your business, check out:
- Foundations — Learn the basics of branding
- Strategy — Plan your brand strategy
- Build Story — Build a brand 1: Your brand story
- Build Visuals — Build a brand 2: Your brand visuals
- Management — Control your brand: Brand management
- Growth — Grow your brand: Brand marketing
- Improvement — Improve your brand: The rebrand
- Measurement — Measure your brand: Brand analytics and KPIs