BENEFITS OF BRANDING STRATEGY
What are the benefits of branding? Businesses spend billions every year on branding. Netflix alone spent nearly 1.5 billion on their branding in 2020 alone. Why is branding such a valuable asset to a business?
To answer these questions you have to understand what branding actually is. Branding is far more than just a logo and some business cards. It’s more than just an identity. Your brand identity is just one part of your branding.
THE BIGGER PICTURE
In order to fully grasp the benefits of branding, you must stand back and look at the bigger picture. You have to include all aspects of value that makes up a strong brand. The truth is, when a business pays for branding, they are not just paying for the results you can see visually. They are paying for the strategy that brings those visuals to life. They are paying for research into the market and consumer.
Anyone can pop a logo onto a business, but that alone holds very little value. However when you back that logo with key market and consumer insight derived from deep research followed by a strategic plan and design to amplify your brand, you add immense value and begin to reap the benefits of branding. This research and insight provides data that tells you who your target really is as well as where you stand among your competition. That information allows for a targeted design strategy that is fine tuned to generate optimal results. So what are those results?
The primary benefit of branding, is added value to your brand as a whole. That value comes in the form of insight and definition. The insight about your target consumer, gives you an idea on how to get and keep their attention. This means more sales and loyalty based relationships with your customer. If you know what your customer wants and provide it, you will create, not just a happy customer, but a loyal one.
The insight about your market category lets you know who your competition is, and how you stand apart from them. It defines your point of difference and gives you an edge. All of this information is then used to define your brand. When you know who you want to attract, it’s easier to create a brand and identity that targets them and offers a promise to deliver what the consumers wants. Below is a list of several benefits of branding.
- Consumer Insight: Identifying your target.
- Market Insight: Defining your place in the market.
- Defined Brand: Defined elements of your brand that are used to guide a brands image/persona and maintain consistency.
- Fine Tuned Identity: A strategically designed identity that pleases your targeted consumer and differentiates you from the competition.
- Customer Loyalty: Consistently delivering the brands promise forms loyal customer relationships.
- Increased Revenue: A fine tuned brand increases customer satisfaction and revenue by an average of 33%.
- Recognition: Branding creates a brand identity that is easily remembered and recognized.
- Reputation and Trust: Reputation and trust are built from the consistency that comes from branding and the delivery of your brands promise.
- Consistency: Branding provides the framework to maintain your brands image. This consistency is the key to continued growth and success.
These points are what differentiates a business from a brand. A business will make money and may even be successful under the right circumstances. A brand, takes control of their circumstances, molds them in a way that it benefits their brand and in effect, its own success. While it may not take out all all of the risks involved in doing business, it definitely puts the odds in your favor.
ABOUT THE AUTHOR
My name is Dennis Bosher. I have been in the design business for nearly 15 years, with a large portion of that focused on branding and identity development. Branding has been a passion of mine for a very long time.
If you would like to reach out, feel free to contact me and I will be happy to get back to you.