In the recent decade, more and moreimportance has been placed on brand and brand identity. Agencies are concerningthemselves with proposing branding solutions to businesses, and whole teams arededicated to assuring success in this area.
Needless to say, investing in brandidentity can therefore demand considerable effort and budget. You might bewondering what the importance of brand identity is, and if it really benefitsyour business.
In this article, we will be exploringthe term and its significance to modern organizations.
What’s Brand Identity?
Before we can examine the importanceof brand identity for businesses, let’s define what the term means.
Your brand identity describes how yourbusiness is portrayed to its customers. It includes everything from yourbusiness name, design and logo, to the colours and shapes of your graphics andfonts. It incorporates your tone of voice on social media, the humour in youradvertisem*nt, the values you hold close and the mission statement you arepursuing.
Many strong brand identities areimmediately recognizable and are known across the world. Such examples includeApple, Coca Cola, Adidas, Tesla and many others. These companies have investedmillions into promoting and developing their brands and can share successstories as a result. Coca Cola, for example, can boast that 94% of the world’s population recognize their logo!
It’s easy to identify how brandingplayed an essential role in getting these brands to where they are today. Butwhy should you care about it for your business?
The Importance of Brand Identity
Your brand identity has the potentialto make you stand out from your competition in a meaningful way. It cannot beunderstated how the brand can change the perception surrounding your productand elevate it to something more.
The importance of brand identity canbe illustrated through the benefits it can provide to your business.
Win a Price Premium
Branded products can demand moremoney than those with a weak brand. That is because strong brands inspire trustand are associated with certain expectations. Apple and Microsoft, two long-timecompetitors, are probably the best examples in this case.
Although Microsoft’s products areoften technologically at the same level as Apple products, Apple has won aloyal following through its branding. Its technologies are perceived as cutting-edge,modern and innovative. As a result, customers will pay a premium price forApple products even if they are very similar in capabilities to much cheaperalternatives. 63% of people pay particular attention to brands when theychoose a smartphone.
A strong brand makes your customerbelieve that they are paying for quality.
Build a LoyalCustomer Base
It takes five to seven impressions ofa brand for consumers to start recognizing you. Strong brand identity makes iteasier for customers to remember your business. This means you can beginbuilding a long-lasting relationship, whereby happy customers will return tosupport your brand.
It is much cheaper to retaincustomers over long periods than it is to invest in one-time only shoppers. Theresult of a strong brand shows in the bottom line. Businesses that present aconsistent brand across multiple channels enjoy a 23% increase in their bottomline on average.
Showcasing a strong brand identitycan help communicate your values to your customers and inspire them to supportyou. 89% of shoppers stay loyal to brands that share their values.
The Importance ofBrand Identity on Employment
Importance of Brand identity isn’t only to customers and marketing teams. Your recruitment process and employee retention could also heavily rely on how your company is branded.
That’s because employees too preferto stay loyal to brands that share similar values to them. They are, in fact,willing to accept lower salaries if they believe their employer’s brand to bein line with their views. Companies with inferior branding pay 10% higherwages.
Additionally, over 90% of people would consider leaving their job if they were offered a position from a brand with an excellent corporate reputation. Suppose your business has a strong brand identity. In that case, skilled talent will also flock towards your job openings more frequently and manage the expectations of suitable applicants by its value signaling.
Having a great brand can reducehiring and training expenses significantly.
Don’t Underestimate the Importance of Brand Identity
Let’s recap. A strong brand identity can make your customers perceive your products and services as higher quality. This empowers you to enjoy a price premium. Brand identity allows you to build loyal customer relationships and lift your bottom line. It also strengthens your position in the hiring market, securing better talent, and helping to retain employees that share your values.But, the brand identity needs to flow through everything in the organisation in order to be authentic and this is no mean feat, especially considering different geographies, time zones, and channels.
At SERVICEBRAND GLOBAL, we help authentic businesses embrace theirvalues and formulate a strategy for a strong brand identity. Get in touch todayto hear how we can help you profit from your brand.
