3 Reasons Why Branding Matters

July 2020 5 minute read

Whether you’re a startup or a well-established business, a strong brand identity matters. Branding is what makes you stand out in the marketplace. It gives your company a compelling story and encourages customers to invest in you emotionally. It’s how all great businesses get to the pinnacle of their respective industries.

Jeff Bezos, the founder of Amazon, once said something insightful about brands:

“Your brand is what other people say about you when you’re not in the room.”

It’s what drives customers’ decisions to spend money on your products and services. In short, it matters.

Reason #1: It Lets You Make A Clear Statement On How You’re Different

Economists taught us a long time ago that branding enhances the value proposition. When companies differentiate themselves, it makes customers pause for thought. All of a sudden, there are meaningful differences between your products and those of another firm. It’s not all the same.

For instance, choosing between an Apple or Samsung smartphone is not an easy choice. Both manufacturers embody different brand identities and offer customers different experiences.

Reason #2: It Communicates The Brand’s Passion, Strengths And Values

Companies also need to create stories about who they are and what they value. Some brands focus on their ethical working practices or sustainable use of resources. Others try to sell themselves as luxurious or charitable. Both routes are valid.

Brand identity is fundamentally about forging an emotional connection with your audience. You’re trying to tap into the things that matter to them and capitalise.

Great branding appeals to people on a personal level. Often, it ignores the quality of products entirely. Mountain biking brand Santa Cruz, for instance, focuses on showcasing fun days out on the trails, not the quality of its framesets in its advertising.

Likewise, Apple tries to create meaningful rapport with customers. It is passionate about making electronics that are both beautiful and user-friendly. So it contrasts its products against the cumbersome PC experience, creating immediate rapport. People see the advertising and say to themselves, “that’s how I feel too!”

Brands are even communicating with people along political lines. Ben and Jerry’s support for recent protest movements is a sign that the nature of branding is changing.

Reason #3: It Creates A Lasting, Positive Connection Between The Consumer And The Product/Service

Finally, brand creation is important because it creates a lasting, positive connection between consumers and whatever you sell. Customers are much more likely to buy products from brands they love.

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