Besides a great product or service, a strong brand is one of the most important assets of any company. It’s what sets you apart from your competitors and allows customers to connect with you on a deeper level. However, the majority of businesses still don’t invest enough time or resources into building a strong brand. Regardless of the industry, you’re in, your brand is an essential part of your success. And while there are many reasons why every business should start focusing on their brand, here are the most important ones that will convince you it’s worth your while:
It Will Help You Attract And Retain Customers
Attracting new customers and keeping the ones you already have is essential for any business. After all, without customers, your business wouldn’t exist. And while many factors contribute to attracting and retaining customers, your brand is one of the most important.
People are more likely to purchase from brands they trust and feel connected to. Studies have shown that up to 86% of consumers say they’re willing to pay more for a better customer experience. If your brand provides an exceptional experience that meets the needs of your target audience, you’ll be able to build a loyal customer base that will stick with you for years to come.
Additionally, since a strong brand will make your business more recognizable, it will also be easier for customers to find you when they’re ready to buy. In fact, according to the 71 branding statistics, 60% of consumers avoid companies with unappealing logos or those they can’t remember. If your brand is easily recognizable, you’ll have a leg up on the competition and be more likely to drive sales.
It Will Help You Command A Higher Price
A strong brand will also help you command a higher price for your products or services. Customers are willing to pay more for products that come from a brand they trust and feel connected to. Studies have shown that brands can charge up to 20% more without impacting demand. In the business world, this is known as price premium and it’s a direct result of investing in your brand.
For example, when Apple first launched the iPhone, it was priced significantly higher than competing smartphones on the market. Yet, despite its high price tag, people were still lining up to buy it.
This is because when customers feel strongly about a brand, they’re less price-sensitive and view the purchase as an investment rather than an expense. So, if you want to increase your prices without losing customers, focus on building a strong brand that provides exceptional value. You may be surprised at how much more you can charge once you have a loyal customer base that’s invested in your success.
It Will Help You Stand Out From The Competition
In today’s competitive landscape, it’s more important than ever to stand out from the crowd. With so many options available, customers are looking for ways to simplify their purchase decision and narrow down their options. A strong brand will help you do just that by making you more recognizable and trustworthy.
What’s more, with a strong brand, you’ll be able to charge a premium price and command a larger market share. According to the Brand Keys Customer Loyalty Engagement Index, businesses with a strong brand can capture up to 30% more market share than their weaker counterparts. This is because customers are more likely to purchase from brands they’re familiar with and feel confident about.
It Will Help You Attract Top Talent
While attracting customers is essential for any business, so is attracting top talent. After all, your employees are the ones who will be responsible for carrying out your brand’s mission and delivering on its promises.
In today’s competitive job market, employees are looking for more than just a paycheck. They want to work for a company that has a purpose and values that align with their own. A strong brand will help you attract these types of employees by conveying what your company is all about and what makes it unique.
What’s more, a strong employer brand will also help you retain the talented employees you already have. For instance, let’s say you have a high-performing salesperson who’s considering leaving your company for a competitor. If your brand is strong, they’re more likely to stay because they identify with your company and feel proud to work there. This is especially true for millennial employees who place a high value on working for a purpose-driven company.
It Makes Your Business More Resilient
In the face of challenges, having a strong brand will make your business more resilient. That meant that if you’re faced with a crisis, such as a product recall or a data breach, your brand can help you weather the storm and come out unscathed. This is because customers who trust and feel connected to your brand will be more forgiving and understanding if something goes wrong.
What’s more, a strong brand can also help you bounce back from failure. If you make a mistake or launch a product that flops, you’ll be able to recover quickly if you have a strong brand behind you. This is because your customers will trust that you’re still committed to providing quality products and services, even if things don’t always go according to plan.
It Will Help You Weather Economic Downturns
As we’ve seen in the past, economic downturns can be devastating for businesses. In fact, according to the Small Business Association, 60% of small businesses fail within the first six years. However, businesses with a strong brand are more likely to survive during these tough times.
This is because a strong brand conveys stability and reliability, which is essential for instilling confidence in customers and employees during an economic downturn. And even if your business does experience some setbacks, you will quickly recover and get back on track if your name in the business and the connections you have with your customers are strong.
It Increases the Value of Your Business
Having a strong brand makes your company more attractive to potential buyers and investors. Studies have shown that businesses with a strong brand can be valued at up to 20% more than businesses without a strong brand.
This is because a strong brand signals to buyers and investors that your company is stable and has a clear direction. It also conveys that you have a loyal customer base and are committed to delivering quality products and services. So even if you are planning to sell your business or bring on investors, it’s important to focus on building a strong brand first.
While many benefits come with having a strong brand, these are just a few of the most important ones. If you’re not already investing in branding, now is the time to start. By creating a strong business image and conveying what makes your company unique, you’ll be able to attract more customers, employees, and investors. And in today’s competitive marketplace, that can make all the difference.