By Jen Smith
Whether you’re a small local cafe or an international realtor, good branding is essential. All-too-often, though, small businesses fall short on branding, either with common mistakes or by disregarding its importance altogether.
In this article, we’re going to explore how good branding positively impacts businesses; from momtrepreneur projects to multinational corporates.
But first, what is a brand?
Traditionally, branding relates to a company’s logo or wordmark along with the colors and design elements consistently used in their marketing. However, in today’s modern brand-focussed world, “branding” has come to mean so much more.
Nowadays, branding extends far beyond a company’s marketing image. It takes into account corporate culture, social responsibility, company ethics and more.
Why is good branding important?
Branding is important because it influences how people view your company and products. With good branding, people will see your company as desirable. On the other hand, bad branding can negatively affect how people perceive your business and its offerings.
So, let’s dig into just how branding can help improve your business and draw in new customers.
1. Inspires Trust
It’s no secret that stellar branding is difficult to pull off. It takes time, money and plenty of effort, often iterating through months and years of business. Because of this, good branding inspires trust amongst potential new customers as they recognize the dedication it’s taken to get your brand where it is today.
2. Connects With Targeted Customers Faster
Good branding is a shortcut to building rapport with your ideal customer. This benefit comes with both the image and actions of your brand. For example, if single mothers are your ideal customer, good branding could feature a feminine design style. Likewise, actively supporting single mothers or female-focused charities in your area would also enhance your brand in the eyes of your ideal customer.
3. Separates You from the Competition
In the case of a crowded marketplace, standing out from the competition is vital. Though easier said than done, one of the easiest ways to overstep your competition is by investing in better branding.
Starting with your logo and brand colors, ensure your brand is updated and relevant to today’s current trends.
4. Increases Perceived Quality
Peer-reviewed research has repeatedly shown that products with good branding are perceived as higher quality. Whether its sunglasses, chamomile tea or [insert your product here], with good branding you’ll likely be perceived as a higher quality good.
The reasons for this is many, but essentially it boils down to a subliminal promise made to customers: you’ve invested so much into your brand because your product is worth it.
After all, why would you put in so much effort to give a low-quality product good branding?
5. Shows You Care
Harking back to my previous point: why would you invest in branding for a low-quality product?
Most people wouldn’t, so, building a well-branded branded business shows you care. Potential customers recognize and appreciate this, trusting you and believing your product is worth their money.
6. Is Recognizable
Today’s exemplars of well-branded companies, like McDonalds and Apple, started their branding focus decades ago. Without that focus on quality branding all those years back, one could argue they wouldn’t be the globally recognized brands that they are today.
Recognition may be more of a benefit once you’ve built a business, but nonetheless, it is a good reason to consider today the resources you allocate to branding.
7. Improves Employee Satisfaction
Employee retention is the Achilles heel of many businesses. No matter how dedicated you are to growing your business, losing a trained worker can be a huge setback.
As it happens, good branding actually helps companies keep employees. Studies have shown that branding, along with an organization’s culture, holds value for employees and contributes to them staying employed within the company.
Considering the cost of replacing employees can number into the tens of thousands, it can be worthwhile investing in your brand to improve employee satisfaction and keep them working for you longer.
8. Encourages Word-of-Mouth Promotion
Word of mouth promotion is amongst the most effective marketing channels for any business.
As we’ve discussed in this article, branding inspires trust, increases perceived value, shows you care, connects with ideal customers and separates you from the competition.
Accumulating these points, you can see why a customer would be more likely to recommend a well-branded company to friends and family. After all, nobody wants to share a business with a low-quality image, right?
What did we miss?
Can you think of any other benefits to effective branding? Let us know what we missed in the comments below!Featured photo credit: Depositphotos