Branding as a business strategy isn’t anything new. However, most smaller businesses and startups can overlook the necessity and indeed, power of quality branding. From product packaging to company values, there is a lot that goes into the outward facing branding.
So, what value does branding have for your company beyond a logo and a slogan? Of course, there is far more to successful branding than that! A branding consultant is the best place to start. However, from brand awareness to company value, here are some powerful examples.
Differentiation of a Brand in a Crowded Market
Everything a company does affects how it is perceived, and that includes branding. One of the first outward examples of branding a business has toward customers is packaging. Something as simple as custom shipping boxes have a very real impact on branding perception. Brands like Apple, Sony and Microsoft think strategically about packaging, with flashy boxes being instantly recognizable. However, they are also designed to make a statement about recycling!
Branding as a Business Strategy for Awareness
Making people aware of the company is the primary motivator for strong branding and can be extremely powerful when it’s done right. For example, 98% of restaurant customers are aware of the McDonald’s brand, something that money alone doesn’t buy. Here’s how it really works:
- Strong branding can make your business instantly recognizable to consumers.
- Your business may also become associated with a product, driving more sales.
- Familiarity is a large part of the customer journey on the path to lifelong loyalty.
Branding builds awareness by creating a distinct experience between a company and a customer. When done well, a business can become instantly recognizable and even associated with a product. Think burgers, you think McDonald’s, right? This is the pinnacle of branding.
Improved Credibility and Trust
Trust in businesses is pretty low these days, as most put profit before service and commitment to outstanding value. So, any new businesses or companies wishing to rebrand, are in a unique position to overtake others. With a quality branding strategy, a modern organization can signify trust and reliability, pushing the credibility of the service or product. As a result, customers are much more likely to have confidence in the service or product you offer, and engage with them.
Attracting and Keeping Customers
There is so much competition these days that just attracting customers is becoming more challenging. However, there are enough consumers for everyone, and it’s simply a matter of branding in a way that appeals to them. Data analysis, segmentation, and demographics play a core role in this. Of course, a company must also brand in a way that retains customers. Rewards, customer engagement, and helping consumers feel valued play a vital role in this.
Perception of Higher Value
There are some brands in retail and other sectors that command premium prices, even though they offer similar services to everyone else. But why, how, and is there anything special about these brands? First, there is nothing special about them. What they have done is cultivated an iconic brand that is perceived as a higher quality. Commitment to customers, consistency, and time plays a critical role in this. Yet, consumers will pay more for perceived premium brands.
Branding as a Business Strategy for Sales
Branding isn’t really optional anymore and should be a part of any business roadmap. More than an expense, branding is an investment. A strong branding campaign has a 10% to 20% ROI, which is why services like Sarke Consulting are to prioritize branding moving forward.
Appealing to loyal customers
Loyal customers are much more likely to make repeat purchases from a brand they have come to trust. Through marketing segmentation, a company can appeal to the loyalty of consumers.
Forging emotional connections
The emotional connections that are made between brands and loyal customers can influence purchase decisions. This can be leveraged for higher price points and increased sales.
A unique and compelling story
With unique values, a compelling story and higher product quality, a brand can stand out against others and attract the people most likely to engage, interact and convert into valuable sales.
Sales are the life of a company, and excellent branding partners will work with a business with this in mind. There is a strong reliability of identifying and appealing to the consumers most likely to buy, such as loyal and repeat customers, while also working to attract new ones too.
Attracting Talented Employees
Among attracting customers, a reliable company also relies on talented employees. This can be one of the biggest challenges for a modern business, as there is a lot of choice for someone with the right skills. However, effective branding can also appeal just as much to potential staff members as consumers. Typically, strong moral and ethical commitments play a role in attracting employees who fit into company culture and commit themselves to a business.
Rapid Expansion and Growth
The time usually comes when a business needs to grow and expand. However, a rapidly scaling business is only as strong as the foundation upon which it is built, and there’s no one to catch it when it falls! Branding plays a pivotal role in setting up that foundation, mostly with appeal, introducing new products, and entering new markets. Existing brand equity makes it harder to fail and easier to gain the trust of a new audience segment, significantly reducing overall risks.
Positive Word of Mouth Marketing
There isn’t anything much more powerful in business than word of mouth. Satisfied customers are exceedingly powerful today, as one wrong social media post can be a disaster. However, quality branding takes consumers into account. Rather than distanced ads, modern customers can become part of the branding itself through engagement. Using modern engagement methods, a customer can become an advocate for the brand itself for free organic marketing.
Branding as a Business Strategy for Value
There are many things that affect the overall value of a company, and these can change all the time. Branding plays a crucial role in keeping these in line, such as public perception. Most experts agree that around 20% is a reasonable budget for branding to increase value:
- The brand itself is just as valuable an asset as patents, copyrights, and products.
- As an asset, the brand can significantly increase the overall value of a company.
- A strong brand is valuable when looking for investment or when selling a business.
A business can vastly increase value with branding that enhances customer loyalty. Through differentiation and perception, a strong brand drives performance beyond what is usually expected, resulting in more revenue, higher employee morale, and increased investor curiosity.
Alignment with Company Values
There is more to a strong brand than an eye-catching logo and memorable slogan. A lot of time and money is invested in presenting a strong brand with a solid foundation to back it up. For example, company values are talked about a lot these days, but how many actually commit to them? A business can be an example within an industry by stating a mission and making every effort to stick to it. Strong values are powerful for attracting customers and employees alike.
Summary
Standing out in a crowded market is one of the most powerful reasons why branding as a strategy is favored by some of the world’s top companies. Instant recognition garners trust and loyalty through expectations alone. Of course, it also works towards increased sales by appealing to customers. However, branding can also increase overall company value, helping the brand itself become just as powerful an asset as company holdings, staff, and copyrights.
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