Ineffective branding is like a scar on a beautiful face. It can crumble and deflate your whole seemingly perfect venture within days of its inception.
According to the U.S. Bureau of Labor Statistics data, about 20% of small businesses in the U.S fail within the first year. A failing business’s underlying equation is quite simple – flawed branding can cause loopholes in the business structure.
On the other hand, successful branding is a striking combo of different ingredients mixed in perfect proportions. History narrates various stories where a lousy branding campaign resulted in an absolute mess.
For example, Estee Lauder released a new line of a foundation called Double Wear Nude Water Fresh Makeup SPF25. It had 30 shades, but over half were geared toward women with pale, light skin tones. There was only a limited number of shades for women of color. Ads for the makeup sent a clear message to potential customers.
Deep Patel has achieved more as a 22-year-old than many people do in their entire lives. He’s never raised a dollar from investors, but he’s already started multiple businesses.
Branding and Business Size
No matter the size of your business, branding should stand on a strong groundwork. It permeates every part of your company. Each component should send out a clear, unified message from logo and marketing to products and customer service. Assuming that you are just starting and don’t need branding might be a massive mistake on your part.
People are incredibly skeptical and cynical when it comes to small business branding. They’d instead buy products from an established international entity than trying out the local small ones. You must figure out creative ways to attract customers. And branding is an umbrella term that contains all possible directions needed to make a mark in the industry.
Sidenote: If you’re struggling with branding for your business. Two Wolves can help you with a strategy for your brand, so make sure that you get in touch with them.
Why Small Businesses need Customized Branding?
Most of the time, small ventures spend time and resources trying to mimic the big fishes in the corporate pond. This is a sure-fire way to failure. A wiser approach is to devise an impeccable plan to brand your small business.
Still not sure about investing in branding? Here are five more reasons to convince you why it’s important…
1. It Creates Trust
Companies that communicate their brand promise through every single client touchpoint build a positive and lasting brand memory. In simpler terms, consumers develop brand loyalty through brand messages, and positive word-of-mouth then has those messages reinforced through direct experiences with the brand.
To build trust, your customers should know that:
1. You are honest and genuine
2. You can deliver your promises
3. You have the consumers best interest at heart
When a company professionally presents itself and social proof of product/service quality, prospects will eventually trust that company. They will feel more comfortable giving it their hard-earned money.
2. Enhances Market Recognition
A logo is fundamental for your market recognition. It is memorable, separates you from the competition, fosters brand loyalty, and grabs attention.
Mounting research backs up how important a logo can be to your brand. A 2019 study from the Journal of Marketing Research found that an effectively designed logo can “influence brand evaluations, purchase intentions, and brand performance.”
Though it is not the be-all-end-all of your branding efforts, you should devote time and efforts to come up with a memorable logo. A professional logo design company, can develop a unique logo to illustrate a desirable company impression.
Today, we think of the Apple logo as a simple but sleek design. But it wasn’t the same since the beginning. The logo originally had a picture of Isaac Newton sitting under a tree. Finally, it changed to the logo we know and love today.
3. Supports your Marketing Efforts
Marketing is another indispensable ingredient of your brand. The medium and channel chosen along with the targeted demographics, help to build your brand.
Small businesses should take extra care when working on their marketing focus. If it is too narrow, there is a risk of being pigeon-holed. Over time, they lose the ability to expand into new paradigms.
On the contrary, a broad marketing focus could lead to an inability to create a definable impression of your company in consumers’ minds.
Branding your business in a certain way determines whether you can go for a versatile marketing campaign. For instance, Louis Vuitton has always targeted the affluent and aspirational market. In recent years, they have refocused their brand strategy to include social media channels like Twitter and Instagram. Previously, it would have been considered too commercial for luxury brands.
4. Generates New Revenue
Successful organizations consider branding an investment. They know their company is a valuable asset. Brands like KFC, valued at $7.4 billion, have proven market visibility and exceptional reputation.
The way people perceive your brand increases the economic value of your business. Greater brand equity, in turn, creates greater leveraging power. You get a greater capacity to demand high prices from the customers or more leverage in business negotiations.
Also, it is one of the best methods to get a referral or word-of-mouth business. And again, this is why it’s crucial that your marketing, logo, and reputation work cohesively to form an indelible impression on consumer minds.
Think about it, how many times you recommended your friend to try out the coffee at a new restaurant downtown by describing its name frame hanging outside?
5. Attracts the Best Talent for Growth
Anyone can hire employees. But only a strong brand is successful in getting talented people up to their sleeve. Think of companies like Facebook and Google. Both are multibillion-dollar companies. Although their founders are visionaries in their own right, it is the talent they hired that allowed them to move forward.
If you can create an effective branding strategy within a limited budget, then the best talent will want to work for you. You can execute operations with optimal efficiency and effectiveness. Innovation runs in their blood, and passion is found in every employee. All of this equates to rapid growth and sustainable profitability in the long-term.
Parting Thoughts
Branding is not something you can’t quantify. A well-designed branding strategy can help generate new business by creating exciting opportunities and referrals from existing customers.
Time and money are two critical resources for small businesses. Spending all of it or most of it on branding can be a poor decision. Finding a balanced branding approach will open doors to thrive in the future.
Watch this space for regular updates in the Hacks category on Running Wolf’s Rant.
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