7 Reasons Why Branding Is Important

Branding defines the way consumers perceive your company and products. It defines you as a business (visually and beyond) and makes you stand out and differentiate yourself from others. A consistent brand can drive new business and retain current customers.

The most common symbol associated with branding is a logo, a quick and very visual way to make an impression on a customer. But branding goes beyond just a logo: it includes colors, voice, name, style, and more. With the right branding strategy, your business can achieve real success. By ensuring all its channels accurately represent and are consistent with the brand identity, a business can foster loyalty, sales, and professionalism.

1. Improves Recognition

A brand that’s both consistent and memorable can help your business grow loyalty. If a customer recognizes your business and can associate it with certain products, values, and feelings, they will be more likely to buy from you than from a brand that they don’t know.

Your logo is the face of your brand and what it represents, so they are usually the first tool for recognition. The right logos have the power to be simple but memorable and give the right impression of your company. Your logo should be carefully and professionally designed to make the desired impact and display what your brand is all about in the most simple way.

2. Generates Referrals 

Customers tend to talk about brands they like, especially if they are continually exposed to and have excellent experiences with the brand. It’s difficult to share about a brand someone is unfamiliar with or one they can’t remember, but a recognizable logo is the first step to achieving recognition. With time and consistency, a memorable logo will go a long way.

3. Differentiates You From Competitors

With so much competition out there, it’s critical to stand out from everyone else, because chances are your product or service already exists. Find the ways your business stands out and how you add value, then transmit those through your branding. This is a more subtle and powerful way to express your uniqueness than by simply saying it — your customers will feel and believe it.

4. Creates Trust

Customers are much more likely to buy from a brand they know and, more importantly, one they trust. Branding can help you create that trust through consistency and recognition.

Also, when a company has an excellent branding strategy, they unconsciously communicate  professionalism to consumers. Customers trust, and buy from, brands that are professional, so when you’re adequately branded, people will look to you as an industry expert and trust your product.

5. Aligns With Your Advertising Efforts

Advertising is part of branding, and your strategies will reflect how you want to portray your brand. When you advertise your products or services, you must keep branding consistent and appealing so that everything in your business aligns.

Brand manuals, for example, are created to ensure brand consistency exists whether your team or a third party creates marketing materials, for example. They serve as the guide to how the brand will be communicated through any marketing channel, so that when customers see your advertising efforts, they recognize your brand and its values.

6. Influences Purchasing Decisions

Your branding can have a huge effect on your consumer’s actions. A brand that’s consistent in everything can increase their revenue by up to 23%. Consequently, your logo can also influence consumers at first glance, from the font, shape, size, and color. When a product is both recognizable and attractive (both achievable with consistent branding), it generates more sales.