Why is a Strong Brand Important for Your Business?
Far beyond just a memorable logo good branding increases the value of a company, brand should provide employees with direction and motivation, and makes acquiring new customers easy.
What is a Brand?
The entire sum of people's perception of a company's customer service, reputation, advertising, and logo.
The sad truth is acquiring a new customer is far more difficult than retaining an existing customer. Customer service should be at the forefront of the concerns of any company with an eye to the future. Happy customers also serve as the most highly converting free advertising available. While a person may or may not buy based on an advertisement, their purchase is a near certainty when they receive a heartfelt testimonial from a trusted and respected friend.
Another large factor in the creation of a brand is the company's reputation. This reputation encompasses both the impressions of consumers and other businesses and is an ongoing concern. Building the image of a company that is scrupulous in its operation, both legally and ethically, is crucial.
Advertising is another component of the brand. Both the medium chosen and demographic targeted for advertisements builds a brand. Too narrow an advertising focus, and a company risks being "pigeon holed" and losing their ability to expand into new markets. Too broad a focus, and the company fails to create a definable impression of the company in the minds of would be customers.
The last but not least component of a brand is the logo. Is there a person alive who doesn't instantly recognize the golden arches of McDonalds? How about the simple but powerful eagle of the USPS? Logo design, as the "face" of a company, is critical because that simple graphic will be on every piece of correspondence and advertising the company uses. Logo design is an art that enables the resulting logo to be simple enough to be memorable, but powerful enough to give the desired impression of the company. (continued below)
Surprising Benefits That You May Not Have Thought of
How Does a Powerful Brand Help a Company?
Building a powerful brand increases a company's value, it provides direction and motivation for employees, and it enables customers to easily choose that company for a business relationship.
For getting the most out of employees they need more than just work, they need something to work toward. Companies with a strong brand have established a direction that employees can follow without being told in minutia exactly how to do so. For example, knowing the company is devoted to build a happy client base through extremely responsive customer service inspires employees to make that happen. Having a strong brand is like turning the company logo into a flag that the rest of the company can rally to. The greatest companies got where they are by pointing their people in the same direction, working toward the same goals.
The Power of A Strong Brand to Generate New Business
Branding allows a company to get referral business. Would it be possible for you to tell a friend about the new shoes you love if you couldn't remember the brand? A large reason 'brand' is the word used for this concept is that the goal is an indelible impression. As the most profitable advertising source word of mouth referrals are only possible in a situation where the company has created an unbreakable link between the fine product or service and the company that provided it.
Branding also allows a company to pick up easy new business by standing out from the crowd. Imagine that a person needs to buy a baseball bat but has never actually held one. There are many, many manufacturers out there, but it is a near certainty that the person has heard of Louisville Slugger. While the person may go with a different bat based on individual needs, the advantage of being the first company to enter a person's mind in a given industry is simply impossible to overstate.
The most profitable companies in the world all have a single thing in common. They have established themselves as a leader in their particular industry - they have built a strong brand.