5 Reasons why Good Branding is Crucial
Building a successful brand spans way further than a logo and company colours. A strong brand can increase the value of a business and drive more sales. It’s the entity that sets you apart from the competition and is a key element of any business.
Whether you’ve just started out in businesses or are considering a rebrand, it’s key that you give it the time and attention it deserves. Here’s why…
1. It builds loyalty
Brands are what consumers associate with when they make buying decisions. To buy products, they must first buy into the brand and what they stand for.
For example, the McDonald’s brand was built on efficiency, cleanliness and good food. By implementing a core set of brand values across every single restaurant, the fast food giant built a reputation for doing exactly what the brand stands for and promises.
Without these values and core principles, McDonald’s could very easily be ‘just another local fast food place’ and not the global empire it is today.
2. It enhances credibility
Have you ever gone to make an online payment and hesitated because of the brand’s credibility? You land on a payment page for a company with very little brand visibility and you suddenly question the security of the purchase.
Businesses with weak branding can instantly appear less credible and cause consumers to shop elsewhere. At the other end of the spectrum, we have PayPal. A business that has build a brand based on security and become one of the world’s most trusted payment methods.
Therefore, by ensuring your branding is strong, you’ll remove any consumer doubts and make them much more confident in their buying decisions.
3. It gives you a competitive edge
Every business wants this and it’s not always easy. That edge that sets you apart from your competitors and puts you at the forefront of the market. More often than not, this is down to branding.
It’s all about becoming that brand that people think about when they want a certain product. For example – Coffee: Starbucks, Soft drink: Coca Cola, Pencil: Staedtler… you get the gist. If you want to make your product the ‘go to’ choice in the market then it all starts with the brand.
4. It is an asset
When businesses are valued, a key element that’s considered is the company brand. Although it’s not a physical asset, it is still plays a key role in the success and longevity of any business.
This is usually based on customer perceptions and the amount they are willing to pay for a certain product or service. For example, consumers would generally be willing to pay more for an item with a well known brand name. This represents positive brand equity and is something that can really boost the value of a business.
5. It conveys what you stand for
Branding provides the means for you to convey what you stand for as a business. If you’re a particularly environmentally conscious business or you donate a certain amount to charity each year – your brand enables you to communicate this.
Shoe brand TOMS is a great example of this. The company was founded in a bit to help children in Argentina whose families were unable to afford shoes. The for-profit company decided to donate one pair of shoes to a child for every pair sold. 11 years on and TOMS has provided over 60 million children with new shoes. This brand therefore sends out a key message which makes the product more appealing to consumers.