For decades, branding has been associated with a symbol, slogan, sign, design, or a combination of these elements to represent a product or service and to distinguish it from the competition. Small businesses often consider branding exclusively for the big fish, companies with massive budgets and nationwide recognition.
But, as it turns out, branding matters to all and any business, regardless of size, budget, and audience reach. In fact, Global Resources LLC advises businesses to develop branding and recognition, as it is one of the most effective ways to increase company value. Your brand is essential to a sales and marketing plan designed to maintain existing business and generate new business.
Branding as part of a sales and marketing plan can boost company value along with diversified revenue and profits, reduced shareholder loans, proper financial ratio management, and the elimination of non business related accounts, among others.
Research findings showed that brands remain powerful because:
- Consumers continue to support leading brands, resulting in their continued growth in sales and market share.
- Consumer loyalty remains high, especially towards leading brands. In fact, repurchase rates are around 58% on average.
- Any decline in leading brands has more to do with the category than the brand itself.
It is clear that a business cannot do away with branding, even in a highly competitive and innately hostile marketplace.
Reasons Branding Remains Relevant to Modern Consumers
It signifies your intent.
Good branding tells your audience that you mean business, and any promises your company made will be delivered. By creating a brand, you are making a bold proclamation. This is why the brand you create must exemplify your organization.
It should be easily recognizable, without any gaps between what was promised and what was actually delivered. Otherwise, brand awareness and the overall well being of a business will suffer.
Build trust and credibility.
Trust is the currency of commerce. Establishing a reputable brand builds a strong foundation of trust and credibility among consumers. When a brand consistently delivers on its promises, it forges a bond of reliability that consumers seek when making purchasing decisions.
Branding provides a consumer experience.
This is why leading brands enjoy high repurchase rates. Consumers know that the brand they want to buy delivers the kind of experience that they enjoy. And every time a business delivers, consumers experience something satisfying.
How exactly does branding provide a customer experience?
- Provide products whose quality is as good as promised.
- Provide products or services that serve the purpose they were designed for.
- Provide an overall customer service experience that motivates trust and loyalty.
Forge emotional connections:
Brands have an extraordinary power to evoke emotions and create lasting connections with consumers. Beyond being mere transactions, purchases become experiences intertwined with personal values and aspirations. Brands that align with these emotions create a sense of loyalty that extends beyond individual transactions.
Consistency Across Channels:
Today's consumers engage with brands across multiple touchpoints, from websites and social media to physical stores. Maintaining a consistent brand identity and message across these channels is essential to providing a cohesive and memorable customer experience. Consistency reinforces the brand's image and message, helping it remain etched in consumers' minds.
Outdo competition
In today’s marketplace, businesses are no longer competing at a local level. With offline and online entities within the same marketplace, you’re up against an entire world of competitors.
By establishing a brand and branding credibility, you stand out from the competition. It also gives consumers a valid reason to consider your brand before anything else. People prefer to associate with credible and reputed brands, after all. With branding as a representation of business, its values, and personality, it remains relevant and powerful as ever.
Sustain Competitive Advantage:
Branding offers a sustainable competitive advantage that is not easily replicable. It encapsulates the holistic perception of a company, encapsulating its values, identity, and offerings. This comprehensive advantage extends beyond individual products, creating a distinct position in the market.
In conclusion, while the methods and platforms for branding have evolved with technology, the core principles that underpin branding's importance have not wavered. Branding remains a vital tool for businesses seeking to navigate the modern marketplace successfully.
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