How branding will make or break your business

Branding might be one of the most important aspects of any business, be it large or small, retail or B2B. Branding is not just an impressive and memorable logo, nor is it how many Facebook fans it has, or how its employees praises its working culture. In fact, it is everything.

A brand represents people’s perception of a company; what your customers can expect from your product, your service and how you are differentiated from your competitors. Given the importance of a company’s reputation especially in the age of social media, it is no wonder large corporations spend huge amounts of money in developing or repositioning their brand. Not to mention, a ‘bad’ branding exercise can also cause the company a PR disaster. Just have a look at Singtel:

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The Importance of Branding

Vanity aside, are there any concrete reasons to branding? Yes, because perception and reputation is everything in the business world, or rather, in the world. Let’s take a look at the important ways a strong brand impacts your business:

Branding Reinforces Recognition

One of major components of your brand is your logo. Think about Apple, Adidas and McDonald’s. Who can refute their ubiquitous influence even if you are not their brand proponent? Speak about Apple and the idea of a gadget that is sleek and white comes to mind. What about the signature three stripes of Adidas and the Golden arches? Logos are literally the “face” of a company, and a simple, professionally-designed logo will help to reinforce the impression on consumers.

Branding Builds Credibility

A professional appearance builds credibility and trust. Having a consistent brand identity will influence consumers to buy from you because it gives them the perception that your company is legitimate.

Branding Equity

Brand equity is the commercial value that derives from the public perception of the brand name, rather than the product or service itself. Companies who are listed on a stock exchange or even start-ups looking for investor-funding will know that much of the company’s value rely on the branding of the company. A strong brand usually calls for a great start for an IPO. In this sense, branding adds a concrete financial value to the company.

Branding Generates New Customers & Retains Loyalty