We’ve all heard it before. A company says, “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. Now, let’s move to more ways branding can increase your bottom line.
Branding builds customer loyalty
Nearly 70% of companies state that it’s cheaper 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 more likely 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 they release 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 more likely 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 improves your bottom line, start by creating a branding strategy that reflects your company values, missions and vision. Identify your target audience, distill your brand differentiators and go from there!