While business branding seems like a popular buzzword used by corporations and media experts, there are real positive effects to be had from brand development. Before any company writes off the concept as a new age fad, executives should consider that business branding yields better customer retention, employee performance and many other benefits.
Most Internet marketing experts will note that business branding helps provide businesses with increased visibility and a memorable presence that consumers will recognize easily. A brand also helps businesses retain customers. Once customers connect with a brand that they trust, they often implement that brand into their daily living. They avoid competitors simply because they liked this brand first, or because competitors lacked a meaningful brand with which they could connect. Some customers even personally identify with the brand itself, forming their own persona around the brand. This is especially true for teens and young adults who remain loyal to specific clothing and sports brands.
Worker productivity has been shown to increase when a business sticks to its brand qualities and promises. Most workers want to feel useful and connect with their work. Establishing a brand that provides them with values and goals to share helps to strengthen the bond between the company and employees. This bond results in higher productivity, happier workers and greater quality in customer service and production. In fact, many companies that have failed to create some sort of logo or namesake with known qualities and ethics are the same ones that fail to retain employees.
The instant positive result of a good brand effort is free marketing at every hour, every day of the week at little to no time or money cost to the company. Every time a customer sees a business logo, he or she quickly associated that company with its goods, services, and values. Customers purchase products that feature this logo and wear them to broadcast their loyalty to the logo in an effort to be trendy. In this way, their actions also result in free advertising each time the logo is worn or displayed.
One of the most obvious positive effects of having a brand behind your business is that you are able to increase your profits by simply charging more for your goods or services. Customers are willing to pay much more for a brand they know and trust, especially if it is a well-known brand that they can showcase. The proof of this is easily available in any typical shopping mall that features products similar to those in standard retail companies sold at much higher prices. While customers may demand an explanation for higher costs, they often are still willing to pay more when a trusted brand is concerned.
Cause-related marketing, which involves establishing a brand that contributes to a common good, is especially beneficial in a modern world that demands corporate accountability. Above all, the brand must help consumers easily associate your business with your product as well as your values in order to succeed. When your company builds a brand, it is building the first steps toward long-term success.