For decades, branding has been associated with a symbol, slogan, sign, design or a combination of these elements to represent a product or service and to distinguish it from the competition. Small businesses often consider branding as exclusively for the big fish, companies with massive budgets and nationwide recognition.
But, as it turns out, branding matters to all and any business, regardless of the size budget and audience reach. In fact, Global Resources LLC advises businesses to develop branding and recognition as it is one of the effective ways to increase company value. Your brand is essential to a sales and marketing plan designed to maintain existing business and to generate new business.
Branding as part of a sales and marketing plan can boost company value along with diversified revenue and profits, reduced shareholder loans, proper financial ratio management, and elimination of non-business-related accounts, among others.
But many are asking, do brands still matter to today’s marketplace and modern consumer?
Yes.
Research findings showed that brands remain powerful because:
- Consumers continue to support leading brands, resulting in their continued growth in sales and market share.
- Consumer loyalty remains high, especially towards leading brands. In fact, repurchase rates are around 58% on average.
- Any decline in leading brands has more to do with the category instead of the brand itself.
It is clear that a business could not do away with branding, even in a highly competitive and innately hostile marketplace.
Reasons Branding Remains Relevant to Modern Consumers
Defines your business
Your brand is the sum total of how your customers perceive, experience, and understand your business. It defines the personality, face, and values that your business embraces.
This is why branding is vital to any organization. It is the one thing that, when people see and hear about it, they will associate it with every single facet of your business.
Branding should be consistent in the tone of your voicemails, the way you market and deliver a service, your social media profile, and the way you present your company. Because the objective is to constantly reaffirm your credibility, deliver a clear and succinct message, build an emotional connection with your target audience, generate loyalty, and to motivate potential consumers to take the next step in the sales process.
Signifies your intent
Good branding tells your audience that you mean business, and any promises your company made will be delivered. By creating a brand, you are making a bold proclamation. This is why the brand you create must exemplify your organization.
It should be easily recognizable, and without any gaps between what was promised and what was actually delivered. Otherwise, brand awareness and the overall well-being of a business will suffer.
Builds trust
Explicit trust in a brand is one of the reasons that leading companies are ahead of the race. For a startup, breaking through that established level of trust can be challenging. But not with the right brand.
Branding is a way to shout out loud and motivate people to try out your product or service. It is an opportunity for the first few customers to test the quality of your products or services. Once you catch their attention, the next step is to keep them coming back to you.
Branding provides consumer experience
This is why leading brands enjoy high repurchase rates. Consumers know that the brand they want to buy delivers the kind of experience that they enjoy. And every time a business delivers, consumers experience something satisfying.
How exactly does branding provide customer experience?
- Provide products which quality is as good as promised.
- Provide products or services that served the purpose they were designed for.
- Provide an overall customer service experience that motivates trust and loyalty.
Outdo competition
In today’s marketplace, businesses are no longer competing at a local level. With offline and online entities within the same marketplace, you’re up against an entire world of competitors.
By establishing a brand and branding credibility, you stand out from the competition. It also gives consumers a valid reason to consider your brand before anything else. People prefer to associate with credible and reputed brands, after all.
With branding as a representation of business, it values, and personality, it remains relevant and powerful as ever.