A brand is the intangible yet simultaneously, the most valuable asset of a company.
Every year millions of startups are founded. That’s roughly 3-4 startups every second. Now, you might be wondering what happens to all these startups. Nearly 90% of them fail, and a majority of those that survive do not create a lasting, recognizable brand name for themselves.
The key here is hiring a reliable and experienced branding design agency that can create a strong brand identity for your company. If done right, your brand identity will correctly and effectively convey your message and values towards your target audience and prospective customers. And if you want your business to succeed, you want your audience to understand what you have to say and offer to them. This is what a strong brand identity does.
Benefits of having a strong brand identity
A strong brand identity is necessary for turning a regular business into a successful business. Here are some of the ways a brand identity can help you in the long run.
- Benefit #1. It Affects Clients
Having a brand name helps influence customers. Even dedicated customers of your competitors may check out your product and give it a try if you have a good brand name. In some cases, these act as replacement options to the original products. For example, let’s say you want a Coke, but can’t find one. Instead, you find a Pepsi and unknown cola brand you’ve never heard of. A majority of the people will opt for Pepsi, as it is quite a reputable brand and has created a recognizable name for itself. Even users who know nothing about the taste and quality of Pepsi will still choose it because of brand recognition.
- Benefit #2. It Helps Expand Your Business
A brand name also helps extend business. All businessmen want to expand their business and want it to reach a large number of people. A brand enables you to achieve this goal as it helps you reach a large number of people. Several other big and small businesses will want to become a part of your business. This can help you to extend your reach to different areas, increase your sales, and provides substantial overall benefits. McDonald’s has been able to open restaurants in different parts of the world. Not only that, but individual owners pay franchising fees to use the McDonald’s brand identity.
- Benefit #3. It Increases Client Loyalty
Customer loyalty is sought out by all businesses these days. It is far more desirable as a business owner than even customer satisfaction. There’s a good chance that even if a customer is satisfied, they might not return. But, if a customer is loyal to you, you can rest assured they will come to you again and again. If you focus solely on customer satisfaction, you need to focus on prices and promotions. In this case, you have to invest in marketing as well. However, if you focus on customer loyalty, you do not need to worry about these. You will end up spending far less on marketing. Having loyal customers helps you reach people via word of mouth, which is the best form of advertisement.
- Benefit #4. It Boosts the Sales
With the increase in brand name recognition, sales increase rapidly because more and more users come to know and believe in particular services and products. Similarly, the more a brand name can become a recognizable name, it can reach a large number of people, thereby leading to an increase in the number of sales. This helps increase the revenue of the company and stimulate further growth.
- Benefit #5. It Protects You from Competitors
A brand is always the preference in the eyes of the users. Even though similar copycat products are available at lower prices, buyers tend to buy products from their preferred brands. This helps provide you with protection from competitors.
- Benefit #6. It Makes an Identity Larger Than the Individual
A brand helps you to reach a large number of people and is always more significant than the identity of a single person. Let’s take a look at Mark Zuckerberg and Facebook. Both of these names are quite popular, yet Facebook is more recognizable than Mark Zuckerburg. Regular Facebook users or nonusers know about Facebook, even if they don’t know anything about the founder. Only some dedicated users know about Mark Zuckerberg. Hence, brands help you to create an identity more significant than any single person. This, in turn, makes it easier for the person to get identified with a brand. In the case of Mark Zuckerburg – those who know who he is, only do in relation to Facebook. This shows the brand’s power.
- Benefit #7. It Simplifies New Product Introduction
Every company wants to expand its business in the future. Having a brand name helps you introduce new products. Even the latest products that you produce gain popularity as they are associated with your brand, and people have the faith that similar services and quality will be provided. Not only that, but you also have proper knowledge of what customers expect from you. This, in turn, helps you provide the best services for your customers. In the case of Apple, after the success of Mac products, the company launched the iPod, iPad, and iPhone, which were wildly popular products. The brand name Apple and people’s continued belief in it ultimately drove these sales.
- Benefit #8. It Boosts Company’s Worth
In terms of accounts, the brand of the company is intangible and valuable. If the company has the right brand name, it has more worth than a similar company with the same resources available at its disposal. Let’s take the case of WhatsApp. In this case, similar apps have not been able to get such acquisition amounts even though they had nearly identical hardware and software resources. This is due to the brand name WhatsApp.
As you can see, having a strong brand identity helps you get a lot of the things in your company straight and streamlined towards success. Of course, if you are not a branding specialist yourself – which is probably true, as you wouldn’t be reading this piece otherwise – you need professional assistance. Thus, take your time and make a list of the best branding design agencies you can afford. Make sure to talk to your preferred candidates and make sure that they really understand your company and don’t just tell you what you want to hear. And when you finally find the right agency, the results will be outstanding.