8 Reasons Why Branding Is Important for Your Business

According to Action Card, it takes 10 seconds for someone to form an opinion about your company — because of your brand.

Your brand isn’t just a logo or color scheme. From social media and website design to tone and voice, the smallest details create an overall aesthetic that represents your company as a whole. 

A marketing strategy needs a strong brand behind it for that extra, all-important boost. Here are eight reasons why branding is important to your company. 

By plugging each one into your brand, you can attract and retain customers to get your company growing!

1. Branding Builds Recognition

Most of us can name a company based on their slogan, logo, or packaging. Since customers are more likely to choose a company that’s familiar to them, it’s important to develop a brand that’s recognizable on sight. 

This can include visual elements like your logo or a humorous tone used in social media posts and on your website.

According to a study by the University of Loyola, color increases brand recognition by up to 80 percent. That includes Target’s red, Starbucks’ green, and even McDonalds’ golden arches. 

From distinct colors and imagery to word choice and tone, the smallest details of your brand can make a huge difference in attracting customers.

2. Branding Develops Trust

Trust develops over time. As customers begin to recognize your brand — not only visually, but emotionally as well — that trust will grow. 

Don’t forget, that first impression matters. Customers will look at your customer service, communication online and on social media platforms, and their personal experience with your product or service.

Help customers develop a positive first impression by offering them an exceptional experience in all three areas. 

Then, they’ll begin to associate those positive traits with your brand.

That first impression builds trust with your customers. As a result, they’re more likely to return in the future, helping that trust grow even more over time.

3. Branding Helps You Differentiate

Whether customers are searching online or in stores, it’s important that your brand stands out from the rest. By setting yourself apart from the crowd, you can help customers develop a preference for your company over competitors.

Differentiating can include your visual brand, such as packaging and an eye-catching logo.

However, in discussing why branding is important, we need to consider benefits and features, too. 

Pinpoint your competitive advantage — what you offer customers that makes you different from everyone else in the market. By making that a key component of your brand, you can show customers why they should choose your company above the rest.
Here are a few tips to help you build a brand that stands out.

4. Branding Adds Value

As your company gains recognition in the marketplace and trust with customers, your company will also become more valuable. 

After all, a company is only as strong as the customers that help it grow. It’s not the equipment or product you’re investing in, but your customers — and a brand they invest in. The importance of brands is their ability to generate business later as much as it can today. A brand may not be physical, but it still promotes future business. With a well-known brand, you can establish your company in the marketplace, ensuring customers and competitors you’re not going anywhere. 

5. Branding Encourages Employees

A strong brand becomes a part of your company’s DNA. As a result, the brand also impacts everyone involved with the company, including employees.

With a clear brand, employees will know what values to uphold and what message to convey. This will influence their interactions with customers as well as their understanding of the company they work for.

A clear mission gives employees a reason to be proud and passionate towards your company. It also helps them achieve the company’s goals. 

As a result, your employees help represent the heart and soul of your company while helping it grow!

6. Branding Leverages Emotions

Emotions drive most of our decisions on a daily basis. They also influence what we buy, and why.

Once you know your target audience, it’s easier to know how to spark a specific emotional response that encourages them to buy your product or service. Then, you can create content to trigger those emotions.

Another way to leverage emotions is by creating a brand personality.

A brand personality lies in the voice, attitude, and tone used within your content. That personality can give your brand life, making it easier to communicate with your customers.

7. Branding Assists Advertising

According to the New Jersey Institute of Technology, 90 percent of customers expect a brand to be the same across all marketing platforms. A consistent brand can help existing customers recognize you with ease.

It can also attract new customers, spark their interest, and generate purchases.

If you’re still wondering why branding is important, look no further than your sales. As customers begin to recognize your brand and develop that trust, they’re more likely to return to your company again and again. 

One key feature of the value of a strong brand is that it helps your advertising campaigns. With a consistent brand and well thought-out ads across numerous marketing channels (including social media), you can reach customers and get them buzzing about your business.

8. Branding Produces a Message

Branding also allows you to convey a message about your company. It’s in every promise your company makes.

The message you deliver to customers and employees is a chance for transparency. By being honest with customers, it’s also another opportunity to develop trust towards your brand.

That transparent, honest message should also be clear and concise. As a result, you can eliminate any confusion about what your company has to offer.

Build that Brand: Why Branding is Important

So, why is branding important? It helps companies grow by developing trust with their customers and employees. The brand also creates an identity that customers can recognize, allowing you to stand out from the rest. 

Using these eight reasons why branding is important, we can help set your company up for success.

Don’t forget: branding doesn’t happen overnight. Check out our blog to find more helpful branding tips.