Building your brand is a crucial part of developing your business. It’s the foundation for giving your company a voice, identity, value and awareness among potential customers. Branding is all about perception. How your target audience perceives you and what they think of you can make all the difference in growing your business. Good branding and business growth go hand in hand. Here’s why:
Branding builds credibility
If you want your audience to trust that you can deliver what you promise, you need to ask yourself the following: Does your brand position you correctly in the market as professional and as an expert? People are likelier to do business with a company that has a polished and professional brand image. A strong brand weathers the test of time and connects with consumers on a more personal level. From the colors you choose to the words you use, make sure you’re communicating what you stand for and state it consistently across all channels.
Branding attracts customers
When customers understand who you are, what you offer and why you are a good choice, they consider doing business with you. Once your brand is solid, word of mouth will help grow your base. Branding can also help create more business by showcasing how you have helped other customers via testimonials.
Branding lets you be clear with your strategy and stay focused
Branding helps everyone in your company believe in the same vision and the same purpose. If your employees understand and believe in what they’re doing and why they’re doing it, they will come through for your customers. That’s why it’s important to have a clear brand strategy and provide everyone in your company with structured and detailed brand guidelines that will reflect the brand’s purpose, values, strategy and personality.
Branding makes you memorable and keeps you top of mind
The marketplace is filled with brands competing to make their names the most recognizable among consumers. Good branding helps you stand out from the crowd and foremost in the minds of your audience. It’s a way to clearly distinguish yourself from your competitors and clarify what you offer and how it’s better than the rest. In return, this can help improve the sales cycle and cash flow performance of your business, as well as increase engagement with current and future customers.
“Why should I spend money on branding?” The answer is simple: because it increases the bottom line.
Let’s start with the obvious. Nobody will buy from you if they don’t know you exist. Branding can increase your bottom line, and here’s how:
Branding builds customer loyalty
Seventy percent of companies state that it’s less expensive to retain an existing customer than attract a new one. Multiple studies have shown that brand recognition is a common denominator in customers’ buying decisions, especially when it’s a product or service they’re unfamiliar with. By implementing solid branding guidelines and building a recognizable brand, you make a critical connection with your audience and build a positive, lasting relationship.
Branding creates brand advocates
Nothing sells like word of mouth. In a world where customers can voice their opinion on brands, your existing customers can be your biggest asset when it comes to increasing sales. The more you reach out to them, the more you stay top of mind. In turn, these new brand advocates are likelier to recommend your company to someone in need of your product or service.
Branding increases the perception of value
Customers are more willing to pay higher prices for services and products from companies with positive brand equity. When customers attach a level of quality or prestige to a brand, they perceive that brand’s products as being worth more than products made by competitors. As a result, they are willing to pay more. Put simply, customers gravitate toward products with great reputations. A good example of this is Apple. When it releases a new product, customers line up around the block to buy it, even though it is usually priced higher than similar products from competitors.
Branding can give you the edge over your competitors
Having your brand solidified in the minds of your customers gives you an advantage over the competition. With good brand recognition in the market, customers are likelier to choose your products or services, therefore helping you achieve greater sales. Even if you aren’t first in your industry, you can still capture an increased market share by focusing on your branding and being aggressive with your market exposure.
Branding helps you attract and retain the best employees
At the end of the day, companies are all about people. Attracting the right talent for your business is key to cultivating growth. Employees aren’t just looking for a paycheck these days; they want to work for brands that share similar values and visions. Like yours. Remember: With so many communications options available to talent these days, it’s important for your brand to cut through the clutter and grab the attention of top-tier talent before someone else does.
To create the brand recognition and credibility that improve your bottom line, start by creating a branding strategy that reflects your company values, mission and vision. Identify your target audience, distill your brand differentiators and go from there!