Branding is a pillar of success in several ways.
It will help you develop a number of features that are unique to your business, such as: B. A logo and a brand name with which customers can get to know your brand and link it to your offers.
Branding is effective in and of itself, but co-branding offers additional opportunities and benefits to companies that deal with it. In this post, discover the benefits of generating brand individuality for your company and the additional benefits of co-branding with a partner.
Benefits of branding
Branding is often the deciding factor for consumers in making purchasing decisions. Branding gives your company an identity. Branding sets you apart from your competitors in a saturated market. Branding makes your business memorable. Branding supports your marketing efforts and promotes consistency. Branding creates credibility and trust. Branding promotes customer loyalty and loyalty. Branding encourages word of mouth. Branding helps you share your values. Branding strengthens the morale and pride of internal employees. Branding makes it easy to introduce new products. Branding brings a high return on investment and higher profits.
1. Branding is often the deciding factor for consumers in making purchasing decisions.
Branding is often the deciding factor for consumers when making a purchase decision. In fact, consumers say they are more likely to buy from brands they know or know and have had positive experiences with.
This is especially true for social media, as 89% of consumers say they are buying from a brand that they already follow and that they recognize from a competitor. With that in mind, having a recognizable and unique brand gives you an edge over customers as they would feel more secure shopping from a company they already know.
2. Branding gives your company an identity.
Branding gives your business an identity that extends beyond the products and services you sell. They become more than just a name, especially when you develop a branding mission separate from your products.
For example, if your brand is committed to social responsibility, you will be associated with those interests in addition to your products. Your business is developing a personality outside of your sales that consumers value.
3. Branding sets you apart from your competitors in a saturated market.
There is no way to quantify how many brands there are in the world, but there are certainly many. With this in mind, branding helps you stand out from the crowd and gain a head start in an increasingly competitive market.
Your brand identity sets you apart from your competitors, especially in industries where it is not easy to stand out because you have similar products. If you have a unique identity, you can still offer these similar products, but your unique brand personality and reputation are what seals the deal.
4. Branding makes your business memorable.
Strong branding makes your company memorable and recognizable to consumers.
They can quickly tell that the content you create is yours, especially if they see it on channels you don’t own because it looks and fits with the content and style of content that they know you are creating.
Being memorable is also helpful when it comes to ad spend. A memorable brand can spend more resources on product promotion and less on brand awareness because consumers already know who you are. For example, Coca-Cola doesn’t need to know it exists because its brand already has a general awareness. Instead, they can focus their marketing efforts on promoting a new drink.
5. Branding supports your marketing efforts and promotes consistency.
When you have consistent branding, future business efforts must always be on a clear path. You spend less time showcasing yourself and more time making sure you’re always delivering the high quality content, products, and experiences that customers want.
Here are some stats to support the benefits of brand consistency:
Consistency also helps build trust with your audience, which we’ll get into below.
6. Branding creates credibility and trust.
Inconsistency confuses, but strong branding does the opposite.
Customers don’t have to guess how or why your content and products relate to your business as it is clear. This helps build credibility as you show consumers that you are keeping your word and not engaging in practices that are inconsistent with what you stand for.
As you build credibility, you also increase trust in your business, which influences consumers in purchasing decisions. As mentioned above, a customer is more likely to do business with a company they recognize and trust because they already know who you are and what you stand for.
7. Branding promotes customer loyalty and loyalty.
Branding increases trust and trust is a pillar of customer loyalty.
Your identity attracts customers because they can see what you stand for, which makes them feel connected to you. When customers feel connected to a company, they are more likely to be loyal. Loyal customers, in turn, increase sales because they are more likely to make repeat purchases and attract new customers to your business.
8. Branding encourages word of mouth.
Consistent branding makes customers loyal, making them more likely to be word of mouth marketing.
Word of mouth marketing is when consumers promote you online to their friends, family, and even strangers. This is of great benefit to all businesses as people trust other consumers more than marketers because they believe they have an agenda. Look at these statistics:
- 39% of consumers trust a brand through peer-to-peer conversations, compared to 23% with paid ads for a brand.
- Consumers report that a person like them (another consumer) is 14% more credible than a brand employee.
As you build a following of loyal customers, they offer your business free marketing to attract new customers and increase sales.
9. Branding helps you share your values.
Customers are more interested than ever in buying from companies that share the same values. Hence, it’s important to have a consistent message that they can share. When customers believe you are making a positive impact in the world, they will pay 31 to 50% more for products and services.
Branding allows you to address this new consumer interest as it goes beyond a recognizable logo and allows you to communicate your branding mission and values.
10. Branding strengthens the morale and pride of internal employees.
Branding is beneficial for outward-looking ideas, but it also has an impact on internal employee retention, work ethic, and hiring processes. Check out these stats from LinkedIn Business on the impact of strong employer branding on hiring and retention:
- Well-known brands can cut training costs by up to 50%.
- 72% of hiring managers worldwide say employer brand has a significant impact on hiring.
- 50% of employers state more qualified applicants.
- Strong branding is associated with a 28% reduction in company sales.
- Inconsistent branding has been found to embarrass employees and lower morale.
The statistics show us that branding helps you position yourself as a reputable source so that employees feel like they are working for something big and authentic. You take pride in representing your brand and company and making sure everyone is continuously working to keep your customers happy.
11. Branding helps you introduce new products easily.
Branding is an easy way to bring new products to market and increase sales for those products.
First, you already have consistent branding in place so that marketing a product doesn’t take a lot of work so that it aligns with your existing products and branding. You don’t have to sit around a table and figure out how it all fits into your company or rename it. There is already a path to follow.
When you bring these new products to market, customers who are already loyal, familiar with and appreciate your quality of service will be happy to try what you have to offer to generate sales and increase sales.
12. Branding brings a high return on investment and higher profits.
Being profitable is the ultimate goal as it allows you to keep your business running, innovate continuously, and deliver the wonderful experiences that customers expect and want.
Since branding is an essential factor in achieving a high ROI, it makes sense to invest in practice.
The advantages mentioned above are relevant for all companies, regardless of size or duration. Co-branding can bring additional benefits, which we’ll discuss below.
Benefits of co-branding
Co-branding is a partnership between two companies in which the success of one company contributes to the success of the other. Co-branding partnerships are most effective when two similar companies work together as viewers draw unique value from their relationship. An example of co-branding that you may already be familiar with is a sports company partnering with an athlete.
1. Co-branding is exciting for consumers.
When two companies work together, the partnership is exciting for consumers. You may never have expected your collaboration and are excited to see what is to come.
Co-branding generates interest and increased attention as it is not a common practice. Customers might update your social media feeds or check your websites on launch days because they are incredibly excited to see what in store for them.
2. Co-branding creates new target groups
While you may be in the same industry, you and your partner are likely to target different audience segments. When you work on a co-branding campaign together, you get in touch with their audience, they get in touch with your audience, and help both of you grow brand awareness, attract new customers, and increase your overall reach.
3. Co-branding helps you build trust with new audiences.
When advertising alone and entering new markets, it is your responsibility to build trust with your audience. However, one benefit of co-branding is that your partners vouch for your credibility.
Your new audiences may not trust you 100%, but the trust they place in your partner shows them that they wouldn’t be exposing them to a brand that they disagree with or that they don’t think is credible. Essentially, your partners are telling their audience that they can trust you because they trust you.
4. Co-branding is inexpensive
When you work with another brand, you commit to sharing resources and investing money in your promotions. This means that you can save money and spend more than you might have with your individual budget.
For example, if you and your partners agree to share the cost of advertising, you can use double the money to access resources to create your campaigns. If you’re a small brand, this can be of great benefit as it gives you the opportunity to branch out in ways that you couldn’t manage on your own.
Ultimately, your business branding is the first thing consumers see about your business, regardless of whether you’re working with a partner. If you take the time to prioritize strong branding for your individual business, you will see revenue growth and new audiences when your co-branding campaigns go live.