A brand is more than a logo and tagline. It’s the promise of an experience, not just with products and services but the interactions a customer has with the company. Strong brands don’t just happen, however. It takes time and effort to build a strong and lasting brand, but that effort pays off in numerous benefits for the company and guides everything it does.
Here are 7 benefits of having a strong brand.
1. Increased Brand Recognition
Brand recognition is how recognizable you are – or how well the target audience recalls the brand and identity of the products. Brands with good recognition can be so powerful that they’re known beyond their existing customer base; non-customers recognize the brand as well.
A great example of brand recognition is Starbucks. One of the major coffee chains across the US and the world, even if you don’t drink Starbucks, you’ve likely heard of it and seen the logo.
Whether you visit a Starbucks in your hometown or anywhere else across the country, you can rely on consistent logos, colors, fonts, messaging, and café interiors. You know that your favorite drink will be the same as it is at home.
2. Improved Customer Loyalty
Strong brands have a tremendous impact on customer loyalty. Research has shown that 57% of customers will spend more money on brands they’re loyal to, and they’re more likely to make repeat purchases. This comes from continuously positive emotional experience and satisfaction.
Loyal customers can be fiercely faithful to their preferred brands, often believing them better than their competitors. Some famous examples of this type of connection include Apple vs. Microsoft and Pepsi vs. Coca-Cola.
If customers have strong loyalty, they’re more likely to stick with products from the same company, ultimately leading to more sales. For example, Apple enthusiasts typically have a MAC, iPad, and iPhone, rather than mixing and matching their devices and operating systems.
3. Lower Price Sensitivity
Price sensitivity describes the effect of product cost on the target market’s willingness to purchase. Lower price sensitivity indicates that customers don’t consider price to be a major factor in making a purchasing decision.
As a result, a strong brand gives you the freedom to use premium pricing. Luxury fashion houses like Gucci and Chanel have the ability to charge high prices for their products because of the customers’ emotional connection to the brand, leading to a higher perception of value.
This concept is not just limited to fashion and status symbols, however. Luxury can be communicated in a variety of products, including the candy company Sugarfina. Branded as the “ultimate luxury candy shop for grown-ups,” Sugarfina offers premium artisanal candies with exquisite details that command higher prices.
4. More Referrals
Word of mouth can be a powerful tool for growth. When people favor a brand and believe in its story, they are more likely to make recommendations to friends, family, or even perfect strangers – ultimately leading to free promotion of your brand. Often, these brands offer consistent, quality products that deliver on their claims, such as Zappos.
The online shoe and clothing retailer grew quickly with its vast selection, exceptional customer service, and legendary 365-day return policy. The word spread, and eventually Zappos created a referral program of its own to help customers earn rewards for their recommendations.
5. More Successful Product and Service Launches
When you already have customers who recognize and trust your brand, you have a group of people eagerly ready to try out your newest products or services. It’s easier for an established brand with an existing customer base to launch new products and services with ready adoption from current customers who are willing to bolster initial sales and give referrals on your behalf.
And if your new product doesn’t gain traction, it won’t ruin your entire brand. There are plenty of examples of strong brands with major product flops that stayed standing because of their preexisting foundation.
One great example of a company that used its existing brand equity to expand its product line is Nationwide Mutual Insurance Company. Along with home, auto, life, and specialty insurance, Nationwide offers pet insurance. With so many competitors in the market, Nationwide tapped into a built-in audience with its pet insurance products to gain traction more quickly.
6. Better Brand Trust
Brand trust refers to the confidence that customers have in a brand’s ability to deliver on its promises. When a brand consistently meets the expectations it sets, customer trust grows.
With strong trust, customers are more likely to make repeat purchases and choose your brand over a competitor. Conversely, when the experience doesn’t meet the brand’s promises, customers are more likely to switch loyalties.
Knott’s Berry Farm is an example of a brand that used customer trust to continually expand its offerings. From humble beginnings as a roadside berry stand in 1923, Knott’s Berry Farm has grown to become the 12th-most-visited theme park in North America. With its 40 rides, shops, restaurants, and other attractions, the park regularly hosts over four million visitors each year.
7. Easier Talent Recruitment and Retention
With an ongoing war for talent, having a strong brand can attract job candidates as well as customers. Top talent wants to have strong brands on their resume, and they’re looking for opportunities with companies that have a reputation for doing right by their customers and their employees.
A strong brand permeates company culture, keeping employees engaged while improving retention. Employees who are engaged are loyal to their employers, productive, and profitable.
Few brands have the reputation for being a positive workplace like Google. For six years running, Google took the top spot in the list of the country’s Best Companies to Work For from Fortune. This is due, in part, to its focus on employee perks like gourmet food and nap pods, positive company culture, and advancement opportunities.
Elevate Your Brand Strategy
Crafting a strong brand doesn’t happen overnight, but it’s a crucial part of having staying power and a competitive edge in an increasingly crowded market. The benefits of a powerful and lasting brand are virtually limitless, from more customer loyalty to simplified product launches to more customer referrals.
Gigasavvy is a brand strategy and creative agency with experience delivering results for brands award-winning strategy, content creation and marketing support. Contact us to talk about how we can help you with your brand.