10 Benefits of Branding
Your small business
“The world is full of obvious things which nobody by any chance ever observes.” Sherlock Holmes
1 Make Emotional Connections
Neuro-scientific and marketing studies have shown that buying decisions are emotional. People buy things for emotional reasons, like the desire for status, belonging, or youth. The facts hardly matter–it’s the feeling that counts. Facts are only used to justify the emotional decision. When you understand your brand and communicate it to your audience, you foster that all-important emotional connection.
2 Become Something Other Than a Commodity
A business without a real identity is just another business. You know you have an identity when potential clients start looking for you by name, rather than looking for the products or services you sell.
3 Distinguish Yourself From the Competition
A strong identity delivered consistently and backed up with action will get you to stand out from the competition and give potential customers a reason to choose you.
4 Get Employee Buy-In
With a clear understanding of the culture of the business, your employees will know how to treat customers, what to do when a problem arises, and how much authority they have to make decisions. And they’ll be happier and more productive knowing “how things are done around here.” Their actions will also be more consistent with the company culture.
Here’s what will happen: you’ll end up with a team of people who refuse to put their own interests ahead of your business. Those who don’t agree with your brand will know it’s time to leave.
5 Attract Better Talent
You’ll also have a foolproof way to find the right new employees. Prospective candidates will know exactly what type of place you run, and you’ll quickly recognize the ones who won’t fit in. You’ll then be able to choose the best of the best in terms of their buy-in to your philosophy and their future loyalty.
6 Make Planning & Decision Making Easier
When the brand is always top of mind, it provides the rules–the context–for making plans and decisions. When people understand where the business is going and what it stands for, decisions will be consistent with the business goals. A brand is the guiding light of your business.
7 Less costly More effective Marketing
When you’re no longer just like all the rest, you don’t have to spend as much trying to market in conventional ways. You can become a business that is sought out by prospective clients, rather than a business that is constantly trying to sell to them. In addition, people like to tell their friends and business associates when they’ve found a good thing. You’re likely to get a lot more referrals. And referrals are free marketing.
8 Increase Profits
Why do companies that make designer luxury products charge so much? Because they can. People buy those products because the company brand triggers certain emotions that create the desire to have them. Even people who can’t afford those products buy them because the buying decision isn’t rational. When you give people an emotional reason to do business with you, they’re less likely to object to your prices.
Branding also results in more effective marketing material, increasing your customer base and your profits. In addition, you might find that your employees are inspired to make more sales because they buy in to the business and want to see it succeed.
9 Exit value
A strong brand can also have a significant impact on the value of your business when it’s time for you to pass the torch to a new owner.
Your brand equity can add as much as 20-30% to the value of your business because prospective buyers know that you have a great workforce and loyal customers. This lowers their perceived risk.