brand is just a perception, and perception will match reality over time
– Elon Musk
Branding
It doesn’t matter if you run a large company or start your own small business. You have heard that branding is very important.
Before we talk in-depth about the benefits of branding, you need to understand what branding is, or you may not realize how important it is to have a brand strategy for a business.
Your brand is the first thought that comes to your customer’s mind and the feelings associated with it. When they hear your name or see your logo, and so on. If the first thought or feeling associated with your brand is positive, your business is going to do well. If not, it’s hard for your small business or company to meet expectations.
How can I build a brand that people LOVE?
You need to define the “why” of your business in order to build a brand that supports loyalty. The goal of every business is to make money, but you should not do it in isolation from your customers.
Once you have a proper understanding of your business, all you have to do is apply it to every aspect of your business. It doesn’t matter if it’s your logo, company slogan, marketing message, sales, customer service or your products, every aspect of your business should reflect your cause. If you have been doing this training for a long time and you can create a brand that people want to buy
What if I don’t actively build a brand?
Well, most companies out there do nothing to build an active brand. But that doesn’t mean people won’t associate anything with your business name. You will be just another company that doesn’t care about customers and only cares about money.
So, this means that if you are not actively creating an image for your business, people may associate negative things and feelings with your business. And trust me, it never augurs well for any business.
By deciding to take charge of building an image for your company, you will have more control. Isn’t it better to take these things into your own hands and not leave it to chance?
If you are still not convinced that the right branding strategy is needed for your small business or company, let us explain the advantages of branding in detail. Here are 8 reasons why branding is important to your business.
01. Branding gets loyalty
If you know your company’s values and build a brand around it, you’ll attract all people who share your beliefs. Your goal isn’t to get every customer in the market, it’s to get customers who regard you as a company. These customers are the best because they are the most forgiving. They won’t care if your products have some flaws or are a little prickly compared to other companies. They will keep coming back to do business with you again and again.
Companies usually calculate the Return on Investment (ROI) of each marketing effort they make. But what they fail to realize is that the ROI of branding is through the roof as the lifetime value of a customer is so high. About 70% of companies admit that “it is cheaper to retain a customer than to acquire a new one”. Therefore, with the right branding, you can focus more on serving your loyal customers than putting all your money and effort into acquiring new customers to achieve your revenue goal.
02. Your brand will set you apart from the competition
Every company tries to get the attention of its customers and puts up hundreds of ads in a single day. Advertisements are everywhere, whether people are mobile, PC, watching TV or walking down the street. Because of this, people have learned to ignore every ad they see. So every day it takes to get your customer’s attention is tough.
Why would anyone buy from you if they do not know you? Only good branding can win people’s attention in this battle for attention.
03. A Strong Brand Will Generate Referrals
In the brand-building process, it is wise to target early adopters in your industry and focus all of your energy and resources on caring for those early adopters. This will not only help you understand the needs of your customers but will also help you in gaining customer loyalty.
You already know this, don’t you?
But one thing that most of you don’t fully understand is the adoption motivation and brand loyalty among early adopters. Let us show it to you with an example.
Let’s say you are planning to buy a car, but you have no idea how to choose a perfect car that meets your needs. What would you do?
If I had to guess, you’d be talking to a friend or family member who is more into cars and buys newer cars more often, right? Or if you need to buy a laptop for some office work, will you go to the same person?
Possibly not.
You will be looking for someone in your social circle who is a techie. These people who buy new products on a regular basis and are enthusiastic about a certain area are early adopters. If you are able to build a strong brand keeping those early adopters in mind, then you are going to get a regular stream of referral customers. And best of all, you don’t have to spend money to get
04. Great Branding Motivates Your Staff
No one can achieve great things and goals alone. If we need to reach some big goal then we need people by our side. Especially when it comes to building a big business, you need a lot of people who are committed and motivated.
If you already have a business, you will be familiar with what they have to say. Hiring intelligent and capable people just won’t help. Why?
Because most of the employees do minimum necessary work to save their job and you cannot build a big brand with this approach. All you need is for all your employees to work in the same direction with the same goal in mind.
If your only aim is to earn money, it is very difficult to achieve. However, if you have your values defined and you know you are in business, it becomes easier. Your core values and beliefs will become part of your company culture that will eventually be reflected in your products and services.
05. The right branding will build trust in the market
In the business world, trust is everything. If you don’t keep your promises, word will spread and people will stop doing business with you. It’s that easy!
However, if your brand is based on truth and honesty, people will slowly start trusting your brand. This will not only increase your revenue and get more customers but it will also increase the trust in the entire market.
As a result, you can attract more talent and inspire more loyalty. And if you ever need a loan or investment for a future project; Banks, other companies, and investors will be ready to own your company in the blink of an eye. I know it may sound far to you now but you will be surprised by the results.
06. IT will increase your company’s net worth
The purpose of starting a company for most entrepreneurs is to sell the business later and get a big payout. Entrepreneurs often fail to realize the importance of branding, so all they focus on is profits and company growth. To understand how branding can increase your company’s net worth, you must have an idea of the valuation process.
I am not going to go into depth about the whole business evaluation process and its methods. To give you an idea, all assets, liabilities, and future revenues, and profits are considered when
07. If you are a famous brand you can set your terms
Walmart is one of the largest retailers all over the world. Their brand revolves around their low prices and they have been doing great for themselves since their inception. Their mission is “to save people’s money so that they can live a better life”. Therefore, their mission is to enable them to negotiate prices with their suppliers as their brand depends on it. Because if they can’t get better prices from their suppliers, how should they offer lower prices to their customers?
In the same way, if you build a big brand, all your suppliers will listen to your demands. You can also negotiate with them on your own terms.
Why???
It’s easy if you are a big brand, merchants and suppliers can’t afford to lose you. They will do whatever it takes to work with you. This way you can enjoy high-profit margins by building a brand.
08. Branding can save you from financial trouble
If you look at history, whenever the financial crisis hit, a large number of businesses and companies were forced to close. As a result, hundreds of thousands of people lose their jobs. Amidst this chaos, while every single person is trying to save money to survive, few businesses are spared.
And some companies thrive during a crisis. Ever wondered why?
Branding is the secret to their success in tough times. Even though they are not spending much on marketing at such times, it is the branding that keeps them on their way to success.