When people talk about "brand" they usually refer to a specific logo or symbol. As much we like to simplify things, this isn't true. At least, not completely.
Yes, a good logo makes your company more recognisable to the eye of your clients and future customers, but it doesn't build the brand.
To build trust, interest and subsequently increase the revenue for your company, you'll need to work on other aspects too.
Beyond a beautiful and unforgettable logo, branding increase the perceived value of your company, products and services, gives your employees motivation, direction and guidelines while creating a bond between you and your customers.
Let's see together a few reasons why you need to build your brand:
Branding builds financial value
Most of the companies who publicly trade on a stock exchange receive evaluations at many times the actual tangible assets of the company.
Part of this value is due to the strong branding and recognition of the company in the industry. A strong brand more likely guarantees future business while being perceived as more valuable will make the process to borrow funds for expansion or rolling out to an IPO much easier for the company owner.
Branding generates new customers
The most profitable companies, whether they are small or large, have at least one thing in common. They have established themselves as a leader in their particular industry by building a strong brand, starting with a strong logo. This generates interest in future customers and helps the business grow via word of mouth referrals.
How could a potential client remember or describe a brand if you don't have one?
Branding creates recognition
Probably the major component of a brand is the logo, the “face” of a business, really it’s what people instantly recognise and we all associate with the word "Brand".
If I say, Nike, Apple, Starbucks you'll remember the logo and how the overall experience of those companies made you feel more than the products themselves. The proof is that we proudly wear or show companies marks around like a badge of honour, willing to pay a premium price for it.
That's the power of a good logo and a strong brand.
Branding generates trust
It's not a secret that people are more likely to purchase from a business that appears trustworthy, polished and legitimate, that has a clear direction and they feel comfortable spending money too.
Companies that don't invest time and resources in the process of branding trying to separate themselves from the mass, will always be many steps behind their competitors not because of the quality of their products and services provided, but mostly based on the perception that they have in the eyes of the customers.
Branding inspires employees
I've known many employees that loved their work and the company they've been working for despite longer hours and less benefit compared to other companies.
Why?
Because many employees want and need more than just a job;
They need a goal to work toward. When the mission of a business is crystal clear employees are more likely to feel proud of the company's achievements as they see them as their achievements.
And when the employee is happy and satisfied with the company mission and culture, he/she will go the extra mile to make the clients happy.
To sum all this up, as Marty Neumeier said:
"A brand is a gut feeling about a product, service or company. You cannot control the process, but you can influence it."
