Why Branding Is So Important For Your Business
April 14, 2020
Author: Liam Dunne
Reading Time: 2 minutes
Since you were just a little kid, you’ve most likely always been taught to ‘never judge a book by its cover’. Why? Because it’s what’s on the inside that counts, don’t judge based purely on what you see… Well, you may want to rethink that one… It’s a nice sentiment, but it’s not what is going down in real town – especially when it comes to your branding.
Whether you think it does or not your business has a brand image. Your business is being judged by its cover – it’s being judged as soon as a person sees it, and based on that first visual alone they are immediately deciding what to expect from you – who you are, what quality to expect, how good you are, how cheap or expensive you are. Added all together these collection of customer experiences with your business create your brand equity and this has a significant value, so you want to make sure you are in control of it. After you remove every measurable factor from the total market value of your company, what’s left is your brand equity.
A good example of a company with a high brand equity is Apple. Because of this brand equity, they can charge a premium price for their products. Apple’s total turnover in 2019 was $260.17 Billion USD (Statista). Its estimated market value (pre-coronavirus) was over $1 trillion although at time of writing is $960 Billion (Bloomberg.com). 3.7 times its annual turnover! That folks is the value of brand equity at its best.
As a business, you only have a snapshot to make an impression and be memorable in today’s marketing noise, so you need to make decisions as though you are always being judged by your cover.
- Your brand makes you recognisable – it sets expectations and helps people become more comfortable interacting with you.
- Builds trust – a trustworthy brand forms an emotional connection with consumers, which develops into long-lasting relationships.
- Competitive edge – that first impression is what differentiates your brand and makes you stand out.
- Gets you the right customers – do you want every customer or just the right ones? A misaligned brand could bring in lots of business, but is it the right business? Are they all the customer persona that you want for your business? Remember, quality over quantity can count.
Many famous companies are constantly tweaking their brands and logos to keep them relevant. Keeping your core, but continuously tweaking the fringe. Check out this timeline of one of the world’s most recognisable brands.
A strong brand is not just the tip of the iceberg, it is the foundation on which your entire company is built in the eyes of your customer. It includes your brand story and good brand communication, which could mean logos that convey your company persona. Remember you don’t need to completely overhaul and rebrand, sometimes it’s the small steps and continual improvement that can help you stay competitive and relevant in a crowded market.