Branding is everything. It is not just your business name, logo, or website. Simply put, your brand is your business’s promise to your customers and this is why EVERY business needs to invest in it. Sadly, many entrepreneurs make the mistake of overlooking their branding because they think of themselves as a “business” and not a brand. Truth is, small businesses need to take their branding efforts seriously if they want to connect with their customers, stand out in the market and ultimately be profitable. In this article, we’ll highlight 5 reasons why branding is essential for your small business.
Branding creates trust for your customers
Trust is very important in building and maintaining any relationship; a business relationship is no different. More than ever, customers buy from brands they trust. According to 2019 Edelman trust barometer special report, 81% say that the ability to trust a brand to do what is right can be a deciding factor or deal-breaker. Since branding goes beyond just your logo and slogan, it is important to be clear and consistent about your messaging. This way, people understand what your business stands for and can trust you to deliver on your brand promise.
Branding makes your business recognizable
Ever heard of the “Rule of 7”? It dates back to an old advertising adage developed in the 1930s. It states that a consumer needs to hear an advertiser’s message at least seven times before they’ll make a purchase. It’s no surprise when someone mentions a product, say sugar, you automatically think of a brand. This is what consistent branding helps to achieve. As a small business, being intentional about your brand helps you become recognizable and ultimately overshadow your competition and establish a long-term position in the marketplace.
Branding Supports Your Marketing Efforts
Marketing is an important component of any business and it works concurrently with your branding efforts. If your brand is not clearly defined, you may run into obstacles developing an effective marketing plan. Clearly defining your brand helps you choose the right messaging and communication channels to achieve your marketing goals. Additionally, having a strong brand helps to easily convert prospective consumers to customers because they can sense the effort made towards the growth of your business.
Branding promotes a strong company culture
A Brand culture is a blend of the ideals, attitudes, ideas, and work that forms a brand’s reputation. Being intentional about building and maintaining your brand keeps your team motivated to embrace and lead the business’ vision. When your team feels inspired, they easily achieve the goals you’ve set for the business.
Branding Generates New Revenue
Branding done well can inspire brand loyalty. Brand loyalty is influenced by how well consumers trust your brand. In fact, a survey curated by Fundera shows that 43% of customers spend more money on brands they are loyal to. Loyal customers also have a reputation for providing referrals and testimonials which help drive more leads and ultimately contribute to the revenue of your small business.
Your brand is the identity customers come to know. The importance of branding for your small business cannot be overstated. Branding is how customers perceive you and it ultimately serves as the blueprint that supports the growth of your business.