By Yhordan Serpentini | April 28, 2023
As a business owner, you know that standing out from the competition is crucial to success. Whether you’re launching a startup or looking to grow an established business, developing a strong brand identity can help set you apart and build a loyal customer base. In today’s blog, we’ll explore five key benefits of developing a business brand identity, from increased recognition and customer loyalty to improved marketing and communication strategies.
What Is Brand Identity?
In short, a business brand identity is the collection of visual and non-visual elements that distinguish a brand from a business’s competitors. A brand identity can range from any form of mode, including the name, logo, colors, typography, voice, personality, and overall visual style that represents your business in some way. When done correctly, a strong brand identity can provide many benefits to a business, including increased recognition, customer loyalty, and sales. For example, Progressive’s Flo character is the brand identity of Progressive, and Kelogg’s tiger is the brand identity of Kelogg’s Frosted Flakes.
1. Better Brand Recognition
One of the best benefits that we briefly went over is that developing a strong brand identity will help businesses stand out in a crowded marketplace. Whether it be like the General from The General, or Terry Cruz’s hilarious character for Old Spice, having a strong brand identity will make it easier for consumers to recognize and remember your brand, which can lead to more business over time.
2. Improved Customer Retention
One of the biggest dreams businesses all over the world want, but so few have, is customer retention—developing a brand identity can make that desire a reality. When customers feel a connection to a brand, they are more likely to continue doing business with that said brand. Brand identity can help businesses create that connection by communicating a consistent message and personality across all platforms.
3. Better Brand Reputation
If you have a brand that you want to get out there, developing a brand identity can reinforce a positive reputation of that brand in the minds of your customers. For example, if a brand is consistent and reliable, having a brand identity reinforcing that idea will encourage consumers to likely trust it over another. Additionally, there is also a sense of increased perceived value gained for developing a brand identity, appearing more valuable to consumers that would otherwise render a brand worthless if not for its identity.
4. Competitive Advantage & Higher Profit Margins
A great benefit every business wants is a competitive advantage, which is exactly what can be achieved through the development of a brand identity. As mentioned earlier, one of the competitive advantages you’ll have over your competitors is increased recognition from consumers, resulting in higher sales and revenue. Additionally, your brand identity, depending on how creative it is, can help your business differentiate itself as distinct from other options in the marketplace. The more distinct and valuable your identity makes your business, the more trusting and willing consumers are to pay.
5. Better Employee Morale
A strong brand identity can have a very positive impact on your business and your employee morale. When employees feel proud to work for a business with a strong brand identity, they are more likely to be engaged and motivated in their work. They may feel a sense of ownership and responsibility towards the brand, leading to higher levels of productivity and job satisfaction. Moreover, the increased morale can also lead to lower turnover rates which can result in saving your business time and money on recruitment, as well as training costs.
Disclaimer: This blog is not intended for financial advice
Sources:
- Ashley. (2019, January 24). Why develop a brand identity? 4 benefits of a strong brand identity. Lean Labs. Retrieved April 28, 2023, from https://www.lean-labs.com/blog/why-develop-a-brand-identity-4-benefits-of-a-strong-brand-identity
- Duberg, O. (2018, June 14). 7 major benefits of strong branding. Frontify. Retrieved April 28, 2023, from https://www.frontify.com/en/blog/7-major-benefits-of-a-strong-brand/
Jaeli Tools:
Latest Posts:
- Digital Mastery Unlocked: Navigating the Costs and Returns of Your Business Website
- From Dream to Reality: Financing Your Business Acquisition for Success
- Marketing vs Sales – Why Both Are Important and How They Complement Each Other
- Defying the Startup Graveyard: Navigating the Mysteries of Business Ventures
- Tips to Boost Your Chances of Raising Capital Through Ten Different Methods
