Branding: The Key To Establishing A Successful Business
Look at the above logos. Do they remind you of something?
What emotions do they evoke in you? Trendy, satisfaction, happiness?
The reason why you can easily identify with logos without needing the brand name to be spelt out visibly is due to the strong branding behind these corporations. These logos are the faces of the companies and they form the brand image.
Of course, logos are just one part of branding. There are many other aspects of branding, some being customer service and advertising. Effectively, branding is how you establish an identity for your brand which differentiates itself from your competitors. When consumers see or hear of your brand, they can easily identify it with something, be it an emotion, an experience, or a combination of both.
For instance, when you think of Apple, you associate it with minimalism. When you think of Disney, you associate it with happiness. When you think of Gucci, you associate it with luxury.
Branding is an important aspect of any business as it ensures that the consumer’s perception of the brand is in line with the message that the company is trying to communicate. The brand in itself is an asset to the company, creating a positive and long-lasting impression on the consumers. This not only creates a strong and loyal customer base but generates a steady stream of revenue in the long term.
Constituents reported an average of 33% in growth if they maintained brand consistency.
Branding is a very effective marketing strategy when done well and we shall delve deeper into the importance of branding.
Why Is Branding Important?
1. Creates Customer Loyalty
If you are a Pepsi drinker, how likely are you to switch to Coca-Cola?
If you are a Coca-Cola drinker, how likely are you to switch to Pepsi?
Unlikely, isn’t it?
There may be various reasons as to why you refuse to do a brand switch, such as the preference for a particular taste, or the habit of buying a specific brand.
Ultimately, when branding is done correctly, it can instill a sense of loyalty in your customers and they will choose your brand over another. The satisfaction derived from consuming or utilizing your product or service keeps them coming back for more. Not just that, they will be more willing to try other products of the same brand due to the positive perception associated with it.
It costs about 5 to 10 times more to find a new customer than to keep your existing one.
Current customers tend to spend 67% more than new customers do.
Strong branding campaigns have the ability to retain your customers and convert them into long-term loyal customers. This secures a constant inflow of revenue for your company, once again proving that customer loyalty is key to running a successful business.
2. Establish Credibility and Trust
Look at GoPro. GoPro branded itself as “the world’s most versatile action cameras” and even though it was only founded in 2002, it has sold over 30 million action cameras since 2009. GoPro is known for its really small cameras, yet offer quality recording for different kinds of action. How then, did it manage to gain customers’ trust despite being a relatively new player in the market?
Well, GoPro focused its branding on the nature of action and adventure. It was able to communicate to the customers about its unique features and functions. Of course, GoPro did not just make empty promises. It was able to deliver quality photos and videos produced from its cameras, further strengthening its credibility as the producer of the world’s most versatile action cameras.
62% of customers state that they are loyal to brands that they can trust.
For someone who may not require or own an action camera, it is difficult not to know about the existence of GoPro due to the extensive branding done by them. Branding as a marketing strategy helps to put your brand out there, showcasing it to the world and letting everyone know about it. When done well, the image of your brand and its story will be remembered by people, even by those who have yet to become your customers. This builds credibility for your brand and product, allowing anyone (both customers and non-customers) to fully trust what you are offering.
3. Form An Emotional Connection With Your Customers
Besides earning the trust of your customers and their loyalty towards your brand, branding gives you the ability to develop an emotional connection with your customers.
Look at Disney. The word “Disney” itself evokes a sense of happiness and nostalgia. Disney attracts people of all ages and across all countries. With a market capitalization hovering near $200 billion, the Disney brand is constantly expanding and growing. The answer in Disney’s success lies in its branding strategy.
Disney is able to effectively communicate a brand story to its audience. It creates a whole new world of the impossible and conveys these emotions through storytelling. By first creating a story, Disney is then able to build a product line around this story. This emotional link connects customers to the brand and makes it easy for customers to relate to the brand.
Different brands can evoke different emotions and feelings. The key is for your customers to feel emotionally connected to your brand through a similarity in emotions. The emotion does not have to always be a happy emotion, it can be fear, anxiousness, or sadness. As long as you have successfully formed an emotional connection with your customers, they are more likely to remember your brand and stay as a loyal customer.
4. Foster Employee Loyalty and Pride
As an employee, would you prefer to work for a company that is well-known with a strong brand history? Or a company with a negative reputation?
Of course, you will choose the former.
By working for a company with strong branding and reputation, the employees will take pride in their work. It gives them a sense of purpose and fulfillment to work for the company, whereby they will find satisfaction in it and be motivated to work even harder.
With a common goal and direction, your employees can better understand their job and perform better. This plays a part in integrating them into the company, becoming part of a big company and fostering a sense of belonging.
No one likes to work in a company with a depressing culture. A happy employee in a positive work culture and environment is sure to perform better. With a strong motivation and drive for the work they are doing, work efficiency and productivity will surely improve. This in turn will bring in more revenue for the company, where highly engaged employees show 21% greater profitability.
Take Lush for instance. Lush has recognized the importance of employee engagement on its brand image. Their motto “happy people make happy soap” shows their acknowledgement of its employees as important assets. As a result, Lush ranks in the top 10 retail employers to work for.
Employees are the driving force behind the success of a company and if you want your employees to take pride in their work, strong branding is the way to go.
5. Competitive Edge Over Competitors
In any industry, there is always more than one person doing the same thing. The market is a competitive place, saturated with brands and companies offering a similar product or service. If you want your customers to be loyal to you, you need to differentiate yourself from your competitors and stand out to your potential customers.
What makes you different from your competitors? If you can’t answer this question yourself, your potential customers will not be able to tell the difference as well.
How can you differentiate yourself from your competitors then?
Giving yourself a name and a positive reputation is the fastest way to be a leader in the industry. Through branding, you can tell your customers what makes you so special or unique. The ability to differentiate yourself from your competitors will give you a competitive advantage over your competitors. With an effective branding strategy, you raise the barrier to entry and make it harder for new brands to compete against you.
Branding is a very effective marketing strategy which can transform your business from a common street name to one that is widely recognized. It is important to establish a strong brand and reputation as it ensures a loyal customer base, which will result in continuous profitability for the company.
Continuous efforts in branding open up more doors for opportunities in the future. With a brand that is credible and trusted by many, it is easier to expand into other industries and loyal customers will follow suit. Even with quality products and services, a company will not be able to excel if it has a poor branding strategy.
As mentioned earlier, there are many aspects to branding, some being the logo, quality of customer service, and forms of advertising.
With an effective branding strategy, people will come to trust your brand. Of course, you should do more to further improve your credibility, such as the use of social proof to further increase your conversion rate. Check out Ping Proof for a suite of notification widgets that leverage on social proof to add onto your website in a few easy steps. Request for a 14-day free trial with us today!