Consider any product, say a skin care product, and now think about what customers will prefer to buy. A skin care product from a rather unknown brand, or one from a brand like MamaEarth, Kama Ayurveda, Forest Essentials, Lakme and CeraVe. There is a high chance that customers will opt for the second option. The reason for this choice is simple. Customers buy products they recognise, associate with and think are good, trustworthy and worth their money.
This is what branding does for a business. It builds identity and perception in customers’ minds, enhances trust and encourages them to make a purchase. In the long term, it builds loyalty among customers. The advantages of branding don’t end here. As of now, we have just scratched the surface. The benefits of branding go beyond these and there is much to discover.
In this blog, we will do exactly this. We will explore the various benefits that strong branding can have for a business. These benefits are the reasons why companies must invest their time, money and resources in their branding endeavours and brand identity development.
So, stay with us as we explore the topic in greater detail.
Builds Awareness & Recognition
Before customers purchase your product, they need to be aware of it. They should be able to recognise it amongst a sea of other products in the same category. This is what branding does first.
When businesses launch a new product in the market, branding helps build awareness and recognition. The brand name, logo, colours, fonts, tagline, images and USP, together build the brand’s identity and presence in the market. This identity is unique to the product and helps customers differentiate it from other similar products in the market.
When these branding elements are used consistently – in packaging design, website and social media promotion – it builds recognition. And this recognition is important as it builds familiarity, which in turn influences the behaviour of the buyers. As per WorldMetrics’ 2024 data, brand familiarity can sway consumer behaviour by up to 30%.
Fosters Trust & Loyalty
With familiarity comes emotional connection and trust. When consumers recognise your brand and learn about your values and beliefs, they gradually begin to connect with you. And when they connect with and trust your brand, they are encouraged to make a purchase.
A good product and a positive overall experience with the brand further boost this trust in the customer. So, next time, when they need to purchase the same product again, they prefer your brand over other options simply because they consider it dependable and of quality. In short, branding strengthens customers’ confidence in the long term and builds loyalty.
A company without a cohesive business branding will find it really difficult to gain customers’ trust and loyalty.
Generates Business
Branding helps generate business both directly and indirectly. When consumers recognise and trust your brand, they purchase your products/services regularly. Moreover, they also recommend your brand in their own circle. Their positive reviews encourage others around them to try out the product and service for themselves. This becomes a chain, wherein more customers begin to trust and buy from your brand. The result is an increase in business for your brand.
Here’s a statistic to understand just how word-of-mouth or referral marketing can help you generate business. According to an Impact study, around 86% of consumers prefer recommendations and reviews while making their buying decisions.
Enables Premium Pricing
How often have you, as a consumer, happily spent extra while purchasing a product of a particular brand, perfectly knowing that a similar product of another brand will cost reasonably low? Several times, right?
What is the reason, though, for this willingness to pay above the usual? It is simple – you completely trust the brand and the quality of its products and services. You consider it to be high value and worth the money you are investing. Moreover, the ‘prestige’ factor associated with the possession of such a product also plays a role. This emotional connection with a particular brand makes consumers less sensitive to price. They don’t just buy the products themselves; rather, they recommend them to other consumers as well.
So, the point here is that consumers don’t really hesitate to stretch their budget a little when buying from certain brands. Apple, Nike, Dove and Tanishq are a few such brands that buyers are willing to pay more for.
Supports Advertising & Promotion
References, reviews, and word-of-mouth publicity – all of these help increase business sales. Still, the importance of promotion and advertising cannot be negated. For a long time now, businesses have always relied on advertising to establish themselves in the market and increase sales, and it will continue to be the same.
However, what supports promotion and advertising in making a product or service successful is strong branding – a consistent visual appearance, voice, message and values. Advertisers use this branding across their marketing campaigns, both in print and online media. When customers come across advertisements from a known brand, they pay more attention.
For instance, customers will be extremely interested in or even look forward to an advertisement or promotional offer by well-known brands like Swiggy, Zomato, Dove or Hyundai. The same may not be true for a business that lacks branding.
In short, branding makes the advertising more effective and impactful.
Builds Employee Satisfaction
Business branding also helps attract and retain talented individuals in the company. How does that happen? Well, who doesn’t want to be a part of a company that is established and considered a good brand? Just think about how many people aspire to work with brands like TCS, Wipro, Infosys, Facebook, Google and Microsoft.
So, like a well-known brand attracts customers to make a purchase, it also attracts the most talented employees to join the company and contribute to its growth. Employees trust the reputation of these companies and feel great working for them. They are, in fact, proud to add the brand name to their resume.
Let’s look at some data that supports this
- As per LinkedIn, 75% of job seekers consider an employer’s brand before
even applying for a job.
- As per a study by Randstad, 92% of candidates would consider changing jobs for a company with a better reputation.
- Keeve mentions another data by Randstad according to which, 76% of employees are more likely to stay with a company that has a strong employer brand.
Builds Company’s Value
Strong business branding doesn’t just increase a company’s value in the eyes of the customers. It additionally improves the overall value of the company in a specific industry. A strong brand commands a strong presence in the market. As a result, other businesses find this brand more appealing for partnership and investment. They are willing to collaborate with a brand that will enhance their own brand value in the market.
Helps Withstand Crisis
Any business can go through a bad phase. The reason for this crisis could either be external or internal, but the important thing for businesses here is to survive the difficult time and come out of it successfully. A strong brand has far greater chances of this. This is because it has consistently delivered on its promise and won the trust of its customers. So, even when it hits a rough patch and faces challenges, consumers are far more willing to continue trusting the brand and give it another opportunity.
In Conclusion
Branding has multiple benefits and, therefore, businesses must focus on building a brand that people recognise and relate to. These people could be customers, employees or even other brands in the market seeking partnership opportunities. Strong branding will always make a business stand out in a crowded market. Want to transform your product, service or entire business into a strong brand? We are all set to help you in the process. Start building your brand with DN Designs today!
