A brand, in its simplest form, is the mental picture you get when you think of a company. Every organization needs a strong brand to boost sales and increase profits. Having a strong brand is all about creating a positive mental image of your business in a way that resonates with consumers. This is something that takes time, given that strong brands are built on trust, credibility, and authenticity. It may take time, money, and effort to build a strong brand, but in return, your customers will reward you by spreading the word to other customers and increasing your brand loyalty. Here are just a few of the important benefits of building a strong brand for your business.
1. Customer Recognition
When a friend starts talking about the new pair of shoes they just bought and you immediately say, “Oh yeah I’ve heard that’s a great brand,” you have just demonstrated customer recognition. Customer recognition is important because people like to purchase brands they know. In fact, research shows that customers are far more likely to purchase a brand they recognize over something unfamiliar. Even if they don’t know much about your business, they will trust you because they know your brand.
2. Improves Customer Loyalty
Another benefit of strong branding is that it increases customer loyalty. Most consumers spend money purchasing from brands they know, so they are more likely to bring you repeat business. They will likely even look forward to new products and services provided by your company. A strong brand with a loyal following will build more positive customer experiences, leading to higher profits.
3. Easy Introduction of New Products
When you have a strong brand, it’s easier and requires less marketing to introduce new products. If you have loyal customers, they will already be excited about and anticipate the launch of new items. With a strong brand, it’s easy to create a “buzz” around the release of new products, and your customers will be lined up to get them!
4. Enhanced Credibility
One of the main reasons people purchase products from brands they recognize is simply because they trust them. For example, if you go shopping for a new flat-screen TV, are you more likely to save a little money and try the off-brand or would you rather pay a little more for a brand you know? Chances are you will end up choosing the familiar brand. It may not be better quality, but you feel better about purchasing a credible brand.
5. Competitive Edge
Having a strong brand is what sets you apart from competitors in the market. If you have a brand customers know, your company instantly has an advantage over less identifiable competitors. The more well-known your brand is, the greater your competitive edge.