If you’re wondering ‘what are the advantages of branding?’ then this is the blog post for you.
Whilst you probably know what branding is as a concept, you might be unsure about the tangible benefit it brings your business.
There’s often a misconception that branding is fluffy, visual, and ‘nice-to-have’ rather than a strategic tool which is vital for attracting customers and boosting ROI.
Although branding is visual (think of your logo, colour palette, brand merchandise etc) it’s so much more than that; it’s what customers think of when they hear your brand name which builds trust and familiarity.
In turn this leads to a deeper sense of customer loyalty and retention which is key for driving your sales. As you can see, it’s so much more than just designing something to look pretty.
It’s about using your brand to engage customers and build out a wider story. In this blog we’ll be exploring the various advantages of branding as well as the meaning of co-branding and why this strategy is just as important!
Advantages of Branding
As mentioned above, there’s lots of advantages to branding that go beyond making a pretty logo that looks better than your competitors. When considered properly, branding is your most powerful tool as it extends to every single part of your business.
Below we’re exploring some further advantages of branding from building trust with your audience to expanding your product range.
Gives your business an identity
Your brand is more than just the products or services you sell. It’s what you stand for, the values you hold close, and the reasons why customers should choose you over a competitor who might be offering the same thing for cheaper.
By developing your brand, you’re giving your business an identity which is something that customers can resonate with. It makes your brand more relatable instead of being a corporate entity that doesn’t mean much to customers beyond what you sell.
However, a brand identity allows customers to connect with you on a deeper level which can lead to more customers and greater ROI. For example if your brand supports a sustainable cause such as packaging its products in recyclable boxes, this might resonate with your customers on a personal level. As they feel like you both share the same values they’re more likely to invest in your offering as they know they’re contributing to something meaningful.
Builds credibility and trust
Having a strong brand helps build credibility and trust with your audience as they come to know what your brand stands for and the quality they can expect.
For example, think of some popular tea brands. You’ve got:
- Yorkshire Tea
- PG Tips
- Tetley
- Typhoo
- Twinings
And that’s just a few.
But why do we trust these brands and what makes us buy them time and time again? It’s because they’ve worked hard to create a strong brand that aligns their messaging, values, positioning and product offering.
They’re also consistent with their branding, ensuring that wherever it’s seen, be that on social media, a billboard, or the packaging, you know immediately what brand it is. Inconsistencies confuse customers and weaken a brand as customers start to lose trust in what the brand is.
However, by creating a strong brand across all touchpoints you’re strengthening your brand in the minds of your customer.
Helps with your brand positioning
If you’ve got a premium product, then a strong brand can help justify its price point. For example, Terry De Havilland shoes are more expensive than the likes of New Look or River Island.
Why?
Because they’re handmade from the best materials, meaning they’re made to last. As their website copy states:
“They are not one season’s throw away shoes, they are handmade from the best materials and timeless.”
These consumer benefits form their brand story which is a key part of building a strong brand. From the visual side of the brand to the narrative weaved throughout the website copy, these elements help justify why the shoes are so expensive in the minds of the consumer.
Essentially it proves the value of the product and how the shoes are going to serve consumers for years to come. The brand history is also key as the company goes back to 1972. Again, communicating this throughout the branding is crucial as it shows that Terry De Havilland is more established, and therefore more trusted, as a luxury shoe brand.
Inspires customer loyalty
Customers are more loyal to brands they trust as they know what to expect when they purchase the product or service.
For instance, going back to the example of popular tea brands, we know that when we buy a pack of Yorkshire Tea, we can expect a quality cup of tea. That’s because we trust the brand to deliver because they’ve proven they can time and time again.
However when it comes to a new brand, and one that has not yet acquired customer loyalty, customers are more hesitant as they’re taking a bit of a risk. Essentially they don;t know what they’re going to get which makes them less likely to trust the brand.
Similarly if the brand is inconsistent it creates doubt as they’re not proving that they stick to their word.
Therefore, by investing in your branding and taking the time to make sure it’s carefully considered, you can inspire long-term customer loyalty and keep customers coming back time and time again. It also means they’re less likely to be persuaded by new brands on the market as they’ll choose what they know and trust.
Makes it easier to expand your products/ services
As your business grows, you might want to add to your existing product or service range. Without a strong brand in place, introducing these new offerings can be confusing for a customer as you need to prove why they’re worthwhile.
However, if you’ve taken the time to create a strong brand from the outset, customers will already trust what you have to offer. This makes it easy to branch out into other things as you’ve already done a lot of the hard work.
Furthermore, if you’ve proven the quality of your product/ service in your existing range then customers will feel more confident about what you’re bringing forward.
Better Living Outdoors, a client of Discovery Design, has an established Hot Tub business throughout the North East. However, after building up a reputation as being a trusted hot tub provider, they wanted to expand into other wellness products such as Chill Tubs and Saunas.
They’ve successfully been able to do this as they’ve spent time solidifying their core offering first and building a strong following for their hero product before branching out. This proves the importance of developing a strong brand from the outset which you can then use as a springboard to launch other offerings.
Generates higher ROI
Higher ROI is often the goal for most businesses as regardless of your business size, sector, or maturity, you need to be making a profit.
As strong branding leads to increased customer trust and loyalty, this in turn, leads to higher ROI as customers will continue to choose your product/ service in the future. They’re also more likely to recommend your brand to other people, thereby increasing your sales even more.
Furthermore, price sensitivity shouldn’t be as much of an issue if you’ve invested in your branding as customers will understand the value that your offering is going to bring. This means they won’t be swayed by cheaper deals or discounts as they’re invested in the quality you provide.
Increases staff retention and morale
When companies think of improving their branding, they never usually think of the benefits it will bring internally. The focus is often on external benefits such as increased sales and customer loyalty.
However, strong branding is key for attracting top talent, retaining staff, and improving overall morale. You should look at your branding as though you were a candidate searching for their next role. What would you want from a company?
Usually it’s somewhere that has a clear goal, purpose, and mission as people want to feel excited about their contribution. Furthermore the way you communicate with employees is a big tell-tale sign as you want to inspire them and encourage them to apply. Again this forms part of your brand as you want to make sure you’re conveying the right messages and giving people an insight into what your brand is all about.
For existing employees, consider the values that you want them to share as this demonstrates what you think is important. Make sure these are clearly visible, whether that’s displayed around the office or on your website as these are the things you hold yourself and your staff too.
Your brand is just as important internally as it is externally, as without the right team in place who feel happy and motivated to work, you won’t be able to sell your products or services – regardless of how good they may be.
What Is Co-Branding and Why Is It Important?
Co-branding is where two or more brands come together to leverage one anothers customer base.
This could take the form of a one-off singular product or it could be a joint campaign that lasts several weeks – it all depends on the goal of the partnership.
There’s lots of advantages to co-branding from tapping into a wider pool of customers to leveraging the reputation of another company. This can be particularly helpful if you’re a startup as you can take advantage of the other brands’ established position. For a co-branding deal to work there should be some form of alignment between the two companies so that it makes sense to an audience.
We’ve listed some popular co-branding deals below including why they were such a success:
Nike and Apple
Nike and Apple teamed up in 2006 to create the Nike+ running sensor, which allowed runners to track their performance through their iPods. This later evolved into a more sophisticated system integrating Nike running shoes with Apple Watch and iPhones. This worked great for both brands as they appeal to tech-savvy, fitness-conscious consumers. Apple provided the tech while Nike offered its expertise in sports clothing, catering to a shared customer base with a passion for health and innovation.
Red Bull and GoPro
Red Bull and GoPro partnered to create and share thrilling content from extreme sports events, combining Red Bull’s adrenaline-fuelled stunts with GoPro’s action cameras. This project improved both brands’ associations with adventure, while offering immersive experiences that resonated with their shared audience.
Starbucks and Spotify
Starbucks and Spotify joined forces in 2015 to offer curated in-store playlists that customers could enjoy outside the store. Starbucks used music to improve its relaxing ambiance, something the coffee shop is known for, while Spotify gained exposure to a wider audience. By coming together, they strengthened the connection between coffee, music, and brand loyalty.
What Are The Advantages of Branding?
There are numerous advantages to strong branding which ultimately boosts sales and ROI for your business.
Regardless of whether you’re a new or established business, you still need a strong brand as this underpins everything you do. From your marketing activities, to your website, to the printed collateral you hand out at events, every part of your business is founded on your brand.
Don’t underestimate the importance of this as a strategic tool that can keep customers loyal to your brand for years to come. If you’re struggling with any part of your brand, get in touch with the team at Discovery. We’ve partnered with companies across a range of sectors to help them create a stronger brand that really makes an impact.
