Branding your business is more important than you realize. It could mean the difference between becoming the next Apple or that other guy who makes phones.
When it comes to consumer behavior, emotions play a tremendous role in their purchasing decisions. Gerald Zaltman, a Harvard professor, has said that 95 percent of all purchasing decisions are done subconsciously.
Without building your brand, consumers will look elsewhere for a product or service with a company they recognize and trust.
If you are curious as to why your brand is so critical to sustained growth and profitability, keep reading this article to discover the benefits it can bring to your business.
1. Builds Value
First and foremost, building your business brand will significantly increase the value of it. The value is enhanced through multiple streams, including:
- Competitive advantage
- Price premium
- Customer loyalty
- Ease of advertising
One way to see how branding can affect the value of your business can be seen through publicly listed companies on the stock market. Many companies that are publicly traded on the open market are valued at much higher levels thanks in large part to the company’s brand.
A great example of this is with the luxury electric carmaker Tesla. Tesla, up until recently, was losing money, but the value of the automaker was still hitting all-time highs. The reason being – the CEO of Tesla, Elon Musk, was branding the carmaker.
Now, it is the most valuable automaker in the world.
2. Enhances Credibility
There is nothing more detrimental to your business than looking like a fake.
According to recent insights, 86 percent of individuals reported authenticity as a deciding factor when choosing what brands to support.
Building a personal brand will give off the impression that you are authentic, resulting in people being more susceptible to listen to what you are promoting.
Trust is a hard thing to come by these days – making it essential to start building your brand and getting noticed.
3. Easier to Hire Talent
When talking about sustained growth, one of the most important factors behind that is the individuals making it happen day in and day out – the employees.
When you already have a brand built, talent will come knocking at your door. Recruiting will be a breeze, and you will most likely have over-qualified talent in many positions.
Remember when the reports were going around that “everyone” at google was overqualified for there position a few years back?
Look how that turned out for them… They could hire the top talent and stay ahead of their industry. According to the most recent statistics, Google owns about 92 percent of the global search engine market share.
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4. Brand Loyalty
If you haven’t noticed yet, consumers are very loyal to the brands they love. According to Fortune Magazine, the top three most admired companies in the world include:
Interestingly, these are also three of the largest brands in the world that many consumers stay loyal to.
Apple is a prime example, every year, they release a new iPhone, and every year consumers line up at the Apple store to buy it. Apple established itself as an innovative, cool business technology to have.
The brand strategy has worked so well for Apple that consumers who buy these products feel as though they take on the personality of the brand.
Brand loyalty goes a long way in building a sustained future. Having consumers that represent your brand as if it is their own, is priceless.
5. Differentiate Yourself From the Competition
In this day and age, the markets are flooded with competition and knock off products making it hard for consumers to differentiate. Many consumers will base their purchasing decision on the brand name itself.
Why do people buy Apple products instead of the cheaper knock off products?
Because of the brand itself, consumers want to feel a part of something bigger, and apple offers that to them.
Everybody wants to be a part of the “in-crowd,” Apple has been that for the past few years and doesn’t look to be handing over the reins anytime soon.
6. Ease of Advertising
Building a brand can help increase awareness and allow customers to find you easier, whether that be online or even in the store.
Advertising is a significant factor in brand building. With an established brand, your product or service will sell itself. Customers will typically purchase from a brand that they are comfortable with and recognize.
According to a recent study, brand awareness is the ultimate goal for 89 percent of marketing professionals.
Some companies have developed innovative strategies to achieve brand awareness, like Geico. But, some companies have such a strong brand they don’t even have to advertise with traditional methods.
A company that is very successful at this is Lululemon. Lululemon has been one of the top consumer brands over the past couple of years, thanks to its branding success. Consumers look at Lululemon as the top choice in the industry, and the company’s profits reflect it.
You have heard the saying “consistency is the key to success,” that holds even more true when it comes to the business world.
Consider a company that already has a brand built, like Coca-Cola. Coca-Cola posts consistent revenues every quarter thanks to the brand that they have developed for over 100 years.
Consistency comes in many forms – from employee retention, to repeat consumer, to even consistent financials. All of these factors combine to create the big businesses we see on Wall St.
As you build your brand, the image you are presenting becomes more evident for the consumer, making it easier for them to recognize and continue giving you their business.
Need Help Building Your Brand?
Building your brand will prove to be one of your most significant assets. It will help grow your business to become the company you always dreamed of and clear the path for a sustainable future.
If you are wondering how to build your brand, schedule a call with us to see if our services can help you get started.