Your brand is a combination of a customer’s experiences with your business/organization at every touchpoint. Each memory, thought, impression, website visit, story, sales letter, social media post, event, phone call, and transaction contribute to your company’s brand reputation.
Building a strong brand can truly pay off. Here’s my list of 9 benefits for focusing on, and building your brand:
1. Increased Visibility
Organizations with strong brands typically have higher visibility in the locations they serve. Their relationships and stories can receive more local media coverage, increased word-of-mouth (WOM) referrals, and new inbound business leads. When prospects and customers come to your business, it can reduce the overall marketing and advertising costs of trying to attract them.
2. Ability to Attract and Retain Loyal Customers and Employees
People gravitate to brands they know, like, and trust. Businesses and organizations with strong brands are more likely to attract their target market segments (audiences) with less effort. Happy customers become repeat customers. They share their good experiences with their networks of friends, families, colleagues, and social connections, which can subsequently multiply.
Employees who work for organizations that have built and earned positive brand reputations — internally and externally — will stick around longer. That means improved retention rates with less aggravation, downtime, and cost. Higher retention rates also save business owners the time it takes to recruit, interview, and train new employees.
3. Differentiation in a Crowded Marketplace
When there are many other companies with similar products and services, stronger brands have an advantage over their competitors. If your customers are thrilled with your products and/or services, and your pricing is comparable with those of other businesses of your type, why would they switch? Your brand will stand out in their minds.
4. Increased Credibility and Legitimacy
When a business has a solid brand, many will perceive it as having greater credibility and a positive reputation. Brand recognition and widespread exposure will often bring it brand legitimacy, even in the minds of people who have never been customers.
5. Emotional Connection
People who frequent well-branded businesses/organizations often feel an emotional connection with them. Whatever their rationale, whether conscious or subconscious, the emotional bond can keep customers coming back while they continue to refer others.
6. Ability to Form and Maintain Long-Term Relationships
When you serve your customers with consistent excellence, communicate with them regularly, and give them something they value, they are more likely to stay in the relationship for a longer term. As long as they continue to have positive brand experiences, they can become part of your business’ circle of friends and fans.
7. Reduced Risk
Well-branded organizations are not as vulnerable to market shifts and economic downturns as those that lack strong brands. Although they may still experience customer attrition, they are usually better positioned to stay afloat and weather storms more capably than their counterparts can.
They also have an edge to earn back their customers’ respect and patronage after receiving negative publicity or causing a poor customer experience. Loyal customers are often more forgiving with well-branded businesses. However, if negative experiences recur, then the risk increases.
8. Increased Business Value
The stronger a brand is in customers’ eyes, the stronger the asset, and the more business value it acquires.
9. Growth and Increased Revenue
Of course, the best-case scenario for any business is manageable growth with increased sales and revenue. Organizations with stronger brands typically have greater opportunities to generate more money than those that do not focus on their brands at all.
For more on how to build a strong brand, check out my book below…
This post is excerpted from Beyond Your Logo: 7 Brand Ideas That Matter Most For Small Business Success ©2015. All rights reserved.