The Importance of Branding
10 seconds. That’s how long you have to make an impression.
In a matter of seconds, a consumer has already formed a lasting opinion of your business based on your branding. Your brand communicates everything, from your organisational values to the quality of your products, with most of these judgements occurring subconsciously in those initial moments of contact. In short, your brand shapes public perceptions of your business, positive or negative.
Let’s break it down…
Good branding can be transformative for a business. Yet, many business leaders need help to measure the value that investing in branding will bring to their organisation. We’ve identified four key areas where branding can have real, tangible benefits for your business.
Recognition
When surveyed, 59% of consumers stated they prefer to buy products from brands that are already familiar to them. The influence of brand recognition on purchase decisions is apparent.
So, what drives this brand recognition?
Naturally, a compelling logo is crucial for creating a memorable visual brand. For example, consumers worldwide will instantly recognise the “golden arches” of the McDonald’s logo or Nike’s “swoosh” tick. However, other visual brand elements can be just as important.
Research has suggested that using a signature colour palette can increase brand recognition by as much as 80%. Coca-Cola is a fantastic example of a company that has successfully harnessed the power of colour. In 1931, the brand popularised the depiction of Santa Claus wearing red, their signature shade. This image has been reiterated countless times throughout popular culture, creating the Santa we know and love today. Much later, in 2014, Coca-Cola turned the iconic London Eye red in a £3.1 million sponsorship deal. They have effectively weaved reminders of their brand into our everyday lives. It’s difficult to quantify the impact of this subliminal messaging, but no doubt, Coca-Cola has one of the strongest colour-brand associations in the world.
Customer Loyalty
Companies that make a meaningful and lasting impression on customers will strengthen their ability to drive repeat sales. Loyal customers can be one of your best assets as a business: 7/10 consumers report that they are more likely to buy from brands they trust.
Customer experience is undoubtedly essential for securing this trust, but it is not the only factor. Presenting a strong, cohesive brand identity that resonates with your target audiences is pivotal. To create a coherent brand, you must identify some core principles you want to embody as an organisation. Remember, branding is not limited to visual assets! It’s how you communicate as a company and the storytelling behind the messages you’re putting out.
To identify your core brand, ask yourself the following questions:
- Who is our target market, and what do they expect from a business like ours?
- What makes us unique?
- What values do we want to represent?
Business Value
Not only can a strong brand identity boost customer loyalty and increase your turnover, but it can also make you a more valuable proposition for potential investors. Investors recognise the power wielded by a brand with a well-known and respected public image. It is easy to imitate a product and a business model, but a timeless brand is nearly impossible to replicate; this means investors are often willing to pay a premium for businesses that have achieved this.
Cohesion
A brand knits everything together, something that is evident when it comes to your workforce. Combining under one image creates a feeling of common goals and increased morale. Everyone needs to feel part of something great, especially those who make you what you are.
Is Branding as Important in B2B marketing?
In a word, yes. Many B2B business leaders believe that the basis for their buyers’ purchase decisions is rational cost-benefit analysis, with no emotion or aesthetic judgment clouding their choices; this is not the case at all. As an agency, we work predominantly with B2B brands and see the impact of good branding on their success. Potential business customers want to work with other businesses that are reliable and trustworthy. A professional and sleek brand identity can boost trust and reassure prospects that your business won’t disappoint them.
Good branding can take some of the pressure off you. Without a strong brand presence, you rely on one of three strategies to make sales: networking, product differentiation, or sheer luck.
Networking, whilst a fantastic tool, has its limitations. There are only so many people that your team can reach each day. With a robust digital brand presence, however, there is no limit on the number of prospects who can encounter your business daily.
Similarly, having a product or service you can back is excellent, knowing nobody else in the market can offer it. However, it isn’t easy to maintain this standard as a company. If you are offering a fantastic product, eventually, a rival business will attempt to replicate your success. Alternatively, if you want to provide the cheapest product on the market, you may continuously cut your prices until there is no room for profit. When this happens, you need a solid brand to maintain your foothold in the market.
