Benefits of a Strong Brand
The 8 Benefits of a Strong Brand
- 1 — Customer Recognition
- 2 — Improved Customer Loyalty
- 3 — Easily Roll Out New Products
- 4 — Retain Better Talent
- 5 — Attract Influencers
- 6 — Reinforced Corporate Partnerships
- 7 — Stronger Financial Performance
- 8 — Better Stakeholder Relationships
A “brand,” in its most basic form, is the mental picture that forms when a customer thinks of your business. One of the most basic ways to positively shape this mental picture is to create a visually appealing, memorable and cohesive visual identity for your business. If your business is fortunate enough to create a positive picture in the minds of consumers, then you’ll be afforded many positive benefits which we’ll cover in detail below.
So, what advantages do strong brands provide an organization?
1 — Customer Recognition
When it comes to most products and services, customers want three things: fast, reliable and a good price. But even if you can easily offer all of these things, you still need to put effort into your overall brand messaging. Why? The right branding increases brand awareness, and when people know you, they’re more likely to buy from you. Having uniquely memorable branding means one-time customers could turn into life-time customers.
2 — Improved Customer Loyalty
A strong corporate brand does more than just increase recognition. It also encourages existing customers to stay with you. Need proof? Think about the concept of the “store brand” versus “name brand” products. Though the contents may be very similar (or in some cases even identical), study after study has shown, consumers are drawn to brand names, simply because more was invested in the branding and marketing of big-name products. Familiar is comforting, and customers will buy what they know and what makes them comfortable. Time and again.
3 — Easily Roll Out New Products
With a base of customers who recognize and trust your brand, you effectively have an entire band of beta testers at your fingertips, ready to try out new product launches. That means you can test certain products and services with your already-repeat customers. If something turns out to be a flop, an existing customer (who’s familiar with your brand) is much more likely to be forgiving. Odds are, even if you have a new product launch bomb, it won’t break you. It might have a very minimal impact on your bottom line.
4 — Retain Better Talent
At this point, the Millennial generation makes up more than a third of the workforce, giving the cohort a good bit of leverage in terms of corporate culture. And as they continue to dominate, they’ve brought a demand for major change with them.
Unlike generational predecessors the Gen-Xers and Baby Boomers, Millennials as a majority demand positive brand empowerment and to work for companies with missions that matter. From this standpoint, the benefits of building a great brand could even spill over into retaining better employees.
5 — Attract Influencers
Especially in the wake of COVID-19, online influencers have become more important than ever in terms of keeping brands up. Influencers are people who make a living off of their online presence and following. If your brand is mission-driven, focused, clear, engaging and positive, and you are able to express that through consistent and powerful branding, you’re much more likely to attract the right influencers.
6 — Reinforced Corporate Partnerships
Everyone knows the old adage you are the average of the five people who are closest to you. Just like with personal relationships, corporate branding and reputation is directly tied to the companies brands have business relationships with.
If your brand stands out from the crowd, is bold and pushing in the right direction, you’re more likely to have other companies with similar outlooks interested in partnering. This can create synergy that elevates both of your brands in the eyes of interested customers.
7 — Stronger Financial Performance
For decades, cognitive psychologists have conducted studies that demonstrate the stronger your brand is, the more likely social brand awareness becomes. And it makes sense, too. The more eyes on you, the more likely you’ll sell.
8 — Better Stakeholder Relationships
It’s no wonder that companies who focus on improving their brands experience more satisfying stakeholder relationships. It’s often easier to retain advertising, services and quality partnerships. Given that a great brand image also typically brings the best employees, it’s clear that sometimes image is indeed everything!
Brands With a Strong Brand Image
Want to see some real-world examples of strong branding? Here are a few companies who invested early on in branding, and it ended up making all the difference!
Snapchat — Snapchat first entered the social media market at a time that was dominated by Facebook. It’s little yellow logo was a breath of fresh air and represented something “new.” Fast forward several years, and that iconic yellow still stands out and represents innovation, coolness and a younger generation.
Nike — Nike entered one of the most competitive markets around, with very little advantage over the competition. But they focused on contracting with athletes (initially even going into debt to do so), before there was a direct association of athletes with good reputations, leading to industry dominance.
Peloton — The indoor-at-home-cycling brand made a name for itself when it launched a Kickstarter campaign nearly a decade ago and never looked back. Targeting busy, health-conscious professionals who appreciate instructor-led classes but want to eliminate the time-suck of getting to and from a gym, the brand made waves with positivity and strong marketing. Their cult-following is made up of more than 1m subscribers and over 3m members to date, who all live and breathe by the little black “P” bike-wheel logo. Add to that an ambitious 100m subscriber goal, and the brand doesn’t seem to be going anywhere but up!
Haven’t defined your brand yet? Learn how to define your brand values
With all the creative resources in the world, if you haven’t defined
your brand’s values yet, you’re selling your company short; learn how to do it today!
