Benefits of branding: 8 Reasons why brand building is important
By in-house staff| October 22, 2021
Although it takes time and constant effort to build a strong brand, it is also true that a strong brand adds to the value of the company in a big way. It provides the workforce of the company with orientation, motivation and a sense of belonging. It enables the business to raise prices, and gain new customers.
Customer recognition"Oh, I know that brand."
Branding makes your business memorable. It gives a business an identity beyond just the products and services it sells. It become more than just a name and overtakes its competitors, especially if it develops a strong brand identity.
Customer loyalty and retention"I like everything they do."
Branding builds trust, and trust is the foundation of customer loyalty.
A strong brand helps the customers feel connected and when customers feel connected to a business, they’re more likely to be loyal. Loyal customers drive revenue, as they’re more likely to make repeat purchases and bring in new customers to your business.
Competitive advantage"Well, I think this company offers better products over yours."
A brand identity sets a business apart from its competitors, especially in industries where it’s not easy to stand out because of offering similar products. If a business develops a unique identity, it can still offer those similar products, but the unique brand personality and reputation are what seals the deal.
Free advertisement"Did you hear about this? It’s amazing."
Loyal customers are more likely to practice word-of-mouth marketing and promote your products to their family, friends and even strangers online. As people trust other consumers more than marketers, this becomes the most crucial and beneficial aspect of your organization.
According to Edelman’s statistics, 39% of consumers build trust in a brand from just peer-to-peer conversation compared to 23% of paid ads.
High ROI"They're showing something new."
As discussed above, a strong brand results in higher customer recognition, loyalty and retention and gives direct competitive advantage, branding is a significant factor in achieving high ROI.
Employee motivation"Working for this brand must be pretty awesome."
Apart from several other direct benefits, branding also impacts internal employee retention, morale, and the hiring process. As per LinkedIn Business statistics, brand value has a direct correlation with employee performance and morale.
Lower price sensitivity"I need this, no matter what."
The power of a strong brand gives you the ability to raise prices. How and why? This is because the brand value of an organization helps justify its almost every action to the potential and existing customers. So, when it raises prices customers don't care much.
Investment opportunities"It seems to be safe to invest in."
When a product or business makes a mark in the market and becomes a brand, it results in a large number of loyal customers. This loyal customer base further instils confidence and trust factor in the minds of investors.