Why Branding is Important and How it Affects Your Business Bottom Line

Why Branding is Important and How it Affects Your Business Bottom Line

Consistent branding increases your business revenue up to 23 percent.

That percentage translates to customers who are not only engaged but interested and invested (socially, emotionally and financially) in the services you offer and the products you share.

But branding isn’t as simple as slapping a logo on your products.

A good brand leaves viewers with an experience. This includes components like targeted storytelling, visual elements, and overall customer satisfaction that builds relationships between business and buyer.

If you want to know why branding is important, look no further than the most successful companies. Can you recognize them simply by their color scheme? By their products?

There’s no question about what a good business is, believes in, and how it creates something unique and beneficial for its customers. In fact, you can probably just see a logo on a product and know, without a doubt, who or what that’s associated with.

That’s what good branding does.

Every single day, there are 2.1 million negative social mentions about brands — and that’s just in the United States alone! You don’t want to be a part of that statistic.

Here’s why branding is important and ways you can positively influence your business by creating a strong and engaging brand.

What Is Branding?

In simplest terms, your brand is your reputation. For businesses based online, this is even more important because 86 percent of consumers read online reviews. What they discover can make or break your business!

Your brand can be divided into several distinct parts: color scheme, images/logo, voice, and marketing.

It’s of utmost importance to have consistency throughout. From your social media pages and website to your newsletters and press releases, everything should have a similar style, readability, and design.

Why Is Branding Important?

Your brand is the first thing consumers will see (and recognize) as they engage with your platform, page, or physical store. If there is a lack of consistency between different pages on a website, for example, the business will feel disjointed. Not only will there be less engagement, but there will be less of a reason for the consumer to trust what you have to say.

Here are some reasons why branding is important for your business’ bottom line:

1. Branding Impacts Your Ability to Reach (And Retain) Buyers

You want a strong brand to expand your digital influence. If your brand is lacking, you’re not able to drive customers to your page or physical store as easily. This can impact your reach.

When you have a strong, consistent brand, customers are naturally more engaged. They trust what you have to say, they feel comfortable on your site/in your store.

2. Branding Sets You Apart

A simple Google search can show you your competition. Regardless of what you do or sell, there’s probably at least someone who can offer similar services.

So how do you set yourself apart? Solid branding.

As you create your brand, you’ll want to think about how this brand shapes your influence, both globally and digitally.

For example, you’ll want to consider the importance of branding with sustainability in mind. Maybe that translates to creating an eco-friendly product design. For other ideas, read more here about design.

Once you determine your business’ message, color scheme, logo, and other aspects to market and drive sales, you’re on your way to developing what makes you, YOU. Although you will be different than your competition, this actually increases familiarity.

Because consumers will become familiar with your business, they’ll be more likely to engage and make purchases.

3. Branding Increases Customer Loyalty

If customers choose to purchase a product or service, they now have had an experience. This experience will retain them and bring them back the next time they need to make an order.

That’s what customer loyalty is all about.

If customers have quality experiences with your business, they’re much more likely to return, rather than pursuing the same products and services elsewhere.

This is especially important if you own a small business. Where competition is fierce, you want to have an edge over your competitors. You can do this with a strong brand.

4. Branding Positively Influences Your Pricing

If you have a strong brand, it positively shapes your pricing. Even if your prices increase (which they will over time) because consumers recognize your brand, they are more willing to pay that price.

As you work on your marketing efforts, too, this will also help your overall profit. The more people recognize and engage with your brand, the more people are making purchases. And the more money you’re making!

Bottom Line: Your Brand Builds Your Business

If you want to build a successful business, you have to recognize the importance of branding. Not only is this going to give your business an identity, but it’s going to create connections. This is one of the most important (if not the most important) way to drive sales.

If you’ve already started branding, you’re on the right track. Keep going!

If you’ve already launched with a brand and aren’t sure what steps to take next, don’t worry. You can always re-brand if you aren’t happy with where you are.

The most important thing is to focus on consistency and get started if you haven’t already. For more information on why branding is important and how to market your business, head over to our blog page.

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