Throughout the twentieth century, many companies established reputations and a level of customer loyalty that still endures to this day. So how did they do it? They may not have been using the same terminology, but successful branding certainly played a part, and you only need to think of some of the world’s most recognizable logos to see it.
Today, branding strategies have become more complex and more refined, but the same formula for success applies: recognition, repetition, and reputation are the key ingredients to a successful branding strategy.
It’s about so much more than having a fancy logo, too. Studies repeatedly show the positive impact of a successful branding strategy on the company’s bottom line across multiple business functions and revenue streams.
Read on to find out exactly how branding helps to maximize business success.
Your branding includes every single touchpoint or interaction a person has with your company, from the first ad they see or recommendation they hear, right down to customer service interactions and repeat purchases.
Recognition matters because it directly impacts a buyer’s purchasing decision. The most significant predictor of whether a prospect will purchase from your brand is whether they have previously heard of you.
The key to achieving this recognition is repetition. A consumer needs to have had at least 5-7 touchpoints with your brand before they can recall it.
Repetition of brand touchpoints can include many different things, including:
-Any type of advertising
-Social media posts
-Organic search results on search engines
-Word of mouth (in person and online)
-Interactions with employees/brand ambassadors
An important part of brand recognition is establishing brand assets, particularly a unique logo. Check out providers such as Infinity Digital, a design company in Coimbatore who creates beautiful and impactful graphics.
Brand equity refers to the value that is added to your products purely based on market perception rather than the actual value of your product/service.
For example, imagine Rolex had a goofy logo, used bright pastel colors, and was perceived as a widely available, everyday accessory. It’s highly doubtful that people would still be paying tens of thousands of dollars to own one.
Brand equity can also include perceived service value. It’s the reason that people are willing to pay more for certain products because a particular brand has a reputation for exceptional customer service.
In this way, how you position your brand in the market can add significantly to your revenue stream than the product/service alone.
In today’s digital world, with so much information at our fingertips, customers have become very discerning about the brands they choose.
Part of developing a branding strategy is attempting to embody your target market’s values and perspectives. If you choose not to do this, it can backfire spectacularly.
Several clothing manufacturers have come under fire in recent years for their lack of corporate social responsibility, particularly regarding how they manage their supply chains. That’s why brands like H&M are now attempting to shed the negative “fast fashion” label and have pledged to use recycled material exclusively by 2030.
After all, 94% of people are inclined to stay loyal to a brand that promotes total transparency.
It cannot be emphasized enough how important trust is to people when it comes to brand loyalty. In fact, 33% of people say that trust is the most important brand attributes a company can have.
Trust doesn’t just encompass the ethics of a company’s activities in the wider world. Trust also implies:
-Good customer service
Trustworthiness and branding go hand in hand because people are far more likely to perceive strong, established brands as trustworthy.
So how can you start to build trust in your brand? Here are a few tips to keep in mind:
-Encourage customers to review your product
-Respond to every review you can, positive or negative
-Leverage user-generated content (UGC)
-Interact with followers on social media
-Develop partnerships with more established brands
-Use sponsorships/influencer marketing
Branding isn’t just about your customers. In today’s competitive landscape, a top strategic priority for companies is attracting (and retaining) top talent. Contrary to popular belief, employees often care about a lot more than just the salary that ends up in their bank account.
Over 90% of people said they would think about leaving their job if a company with a fantastic reputation made them an employment offer.
Not only that, but companies with strong brands also spend a lot less on recruitment - as much as 50% less.
Good employer branding also spills over into your reputation amongst customers. Nobody likes it when employees are poorly treated, and this is something that has hit companies like Amazon hard in the past.
Attracting new customers is costly, a lot more costly than retaining existing customers and nurturing their continued loyalty.
Branding can help you with both lowering the cost of new customer acquisition and increasing customer retention. When it comes to clicking during online shopping, 70% of shoppers click on retailers they have already heard about.
The stronger your brand, the more memorable it is, and the more likely people are to purchase from you.
While branding may not be a one-stop-shop solution to business success, when done right, it can help to boost revenue, retain customers, and support a positive corporate reputation. What branding strategy step will you take first?