Branding is one of the key factors for the success of your business. It is not only essential for big companies, but for all corporations, big or small. Businesses need to focus on building a unique brand identity to set themselves apart from the competition and help their customers recognize the brand.
There are several crucial factors involved in branding, including targeting the right customers and creating the right brand image. This involves visuals, the message you’re conveying, and the people you are targeting.
To understand how to improve brands and impacts, you must first understand what branding actually is.
What is Branding?
What do you think of when you see Apple’s logo? If I see the logo, I immediately think of technology, innovation, market leader, premium quality, and high price range. It seems that I am not alone; research suggests that most consumers associate Apple with creativity, ingenuity, and luxury. This is a classic example of branding; through conscious marketing decisions, Apple has created this perception of themselves in the mind of the consumer.
Other brands do the same, through branding, they let the customer know what their brand stands for. In simple terms, branding is the way you define and identify your business. The way your customers perceive and experience your business is highly dependent upon your branding. Branding helps in creating an image and gives an impression on your business values and objectives.
Branding is important to gain reputation and credibility amongst the customers. People tend to underestimate the power of branding. Let’s have a look at some statistics for better understanding:
- Colors help in brand recognition by 80%
- 89% of shoppers are loyal to the brands who are open about their values
- 73% of shoppers are loyal to brands based on their good customer services
- Proper representation of a brand across several channels can help increase the revenue by 23%
- Adding music in branding can increase favorability by 46%
Why Is Branding Essential For A Small Business?
Following are some of the benefits that you would be able to achieve through strong branding of your small business:
1. Stand Out Amongst the Crowd
Branding can help you stand out amongst thousands of competing brands globally. It can help you attract customers and keep them coming back. There are millions of small businesses out there, and buying a logo online is not a difficult thing. But purchasing a $20 logo is not what branding is about.
What the majority of brands lack is a strategy on branding and developing a brand story. Staying consistent and having a well thought upon the strategy for branding can help you stand out from your competitors.
2. Gain Customer Loyalty
Having strong branding can help in gaining customer loyalty and trust. According to various statistics, people prefer to trust in brands with strong branding and recognition efforts. People tend to trust the brands that resonate with their values, such as transparency in product ingredients, environment conservation, women empowerment, etc.
Customer’s trust is achieved once you follow the following practices:
- Deliver good quality products or services
- Good reviews and feedback
- Attention towards customer support
- Value their customers
- Provide transparency in products/ procedures
3. Gain Credibility
For people to trust your brand, it is important to have well-established branding. Small businesses tend to ignore putting efforts into branding; hence people hesitate in trusting them. Having proper branding can help you achieve the credibility and trust of customers. Using statistics, feedback, and focusing on customer services can help you impact in having strong credibility.
4. Increases Business Value
If you pay attention to building strong branding for your business, in no time, you can create your business’s worth and ask for the rice you wish rather than offering discounts and freebies to people. Once a brand develops its identity, people are willing to pay a premium for the products.
5. Returning Customers and Referrals
People remember the brands that serve well to their clients, deliver the promises, and focus on customer assistance. No matter what the scale of your business, customers would always return and refer your services to people if they receive quality services from your brand.
People often ask their friends and acquaintances for referrals before they shop. This is especially true for specialty products, such as cars, watches, coaxial cables, and technological gadgets, etc. Hence, it is important to pay attention to branding to attract newer customers.
- There is a 37% higher retention rate of customers acquired through referral
- It is 4x more likely for people to buy things when a friend recommends it
- An additional 16% profit should be expected from referrals
6. Attract Consumers
As a small business, it is hard to attract new customers. You can target new customers if you create a strong brand image. People tend to buy from brands that share the same ideology as themselves.
Therefore, building a brand that reflects the same values and ideology as your customer can help you attract your target audience. This can not only gain your customers but can also convert them into regular clients based on your consistency.
- 86% of the people are willing to pay more for businesses that provide better services
- 73% of buyers believe customer service an integral component in purchases
- 63% of buyers believe better experience is better than an advertisement
7. Brand Identity
A strong brand identity is a pre-requisite for your business to succeed and flourish. Having a strong brand identity through branding can help you achieve a name in the market, causing you to attract new clients and trust of existing clients.
Having consistency in your brand is also essential to gain customers and form an identity for people to recognize your brand. When you build a strong brand, you are instantly recognizable to your target consumers.
- People start recognizing your brand
- Can help you gain loyalty
- Can help you deal with competition
8. Cost-Saving In the Longer Run
Branding would cost you initially; however, if you look at it from a long term perspective, it will save you a lot of cost and time as well. Done correctly, branding can bring in a higher ROI, create a recognizable brand identity, loyal customers, and much more.
9. Better for Expansion
To build a brand’s identity and reputation, it is important to pay attention to branding.
If you have strong branding and people look up to what’s new, then it is easier for you to expand and add newer products in your range. For example, if you are a small soap business, you may introduce skincare products, and your clients who already use your soaps would be willing to try your newer products as well. Hence it is easier for small businesses with strong branding to expand.
10. Guides Strategy
Having strong branding can guide you towards your future goals and aspirations in the growth of your business. Branding sets principles and guidelines for your future aspirations and guides your way towards expansion. Having a strong strategy can help you move forward while you plan to grow your business.
Conclusion
These are some of the benefits that you can achieve if you have properly invested in the branding of your business. If you are serious about growing your small business, then you must get serious about building a brand identity.
A powerful branding strategy sets your company apart from the competition, it helps your consumers recognize and remember the brand, increases brand value, and so much more.
A little investment today can help you reap big rewards tomorrow.
