As the world transitions into a digital sphere, customers become more aware of their choices and are seen making more conscious and informed decisions. It has led businesses to seek stories that truly represent their core operation while connecting with the people on an emotional level. Brand identity is the primary step in doing so.
In simpler words, brand identity is a company’s promise to its customers. It needs to be bold, consistent, and, above all, unique enough to set you apart from others. Your corporate identity consists of the organization’s present, past, and future in a way that connects with the people. Let’s have a look at some of the many reasons why your business needs a strong brand identity:
- Creates Customer Connection
Developing a deeper connection with your customer can increase your customer retention value. Emotional connection with the audience imprints your brand into their brains and makes it recognizable. Today, most customers favor businesses that make conscious decisions and operate based on emotive goals. If you want to sell your brand, creating an identity that connects you with the customers is necessary. Behavioral science tells us how humans want to make rational decisions, but emotions ultimately drive them. So, a strong brand identity will not only retain customers but also attract potential clients, which is the goal of every profit-making organization.
- Represents Brand Story
The story behind your brand is a promise you make to your customers; a good and reliable business tells the customer what to look for. Creating a brand identity that tells your tale is only a job for some, as it requires analytical tools and an understanding of essential business leadership. People with a general MBA have a better grip on the subject because it helps them gain appropriate knowledge to consistently develop critical solutions for complex problems. For instance, if your brand story reflects creativity and innovation, your operations will revolve around bringing new ideas to life. You would have fulfilled your promise to the core by delivering the promise of innovations. And that will be your brand identity which represents your brand story.
- Develops and Maintains Focus
Lack of focus in leadership is a leading cause behind the failure of many businesses today. Increasing competition and industrial rivalry have misled entrepreneurs and driven them away from their primary goals. A strong business identity stops this from happening; it develops and maintains the focus by giving a goal-oriented and strategic approach to all business activities. It helps position the company on a path that leads to success and builds itself by maximizing all available opportunities. Brand identity becomes the company’s position statement and directly brings to it any new and great opportunity, even mildly related to the aspirational vision of the business. It simplifies and quickens decision-making because decision-makers can easily sense if the given choice lines up with their brand identity or needs to be discarded.
- Aligns and Attracts Employees
One of the primary reasons businesses stop growing is their high labor turnover and inability to attract top talent despite being in the market for a long time. Brand identity is not only for the customers to relate to but also a people’s perspective and hence holds importance for all company stakeholders. Because it defines the focus and streamlines communication, people feel better working for a business with a clear vision and set of objectives. They stay longer in the company and feel motivated, eliminating distractions and improving productivity. A company with a strong brand identity would also attract the top cream of the industry because it resonates with them. They would know how their efforts and energy at work would help the people at the end of the day and would want to be a part of your corporation.
- Promises A Competitive Edge
Not all companies find core competency in the early and developmental stages of the business. Understanding where your advantage lies takes a lot of time and experience. However, by maintaining a solid brand identity, you would already have a competitive edge. Like Apple, the company has a brand story that attracts all mobile users, and despite many other new entrances, it remains on top of the global market. Brand identity helps you convince your audience to purchase your company’s required goods or services. It gives them a reason that they are unique and different from many others in the industry selling the same thing as you. Nearly 60% of customers buy products from a brand they’ve heard of and are familiar with. Hence, you get a competitive edge over your rivals when you have a strong brand identity to represent your organization.
Your brand identity should be used to communicate your product’s purpose and values. This helps you connect with customers, build a loyal customer base, and increase sales. By establishing trust and credibility in the market, you can establish yourself as an industry leader, which will give you an edge over your competitors. Working with a marketing agency like Catalyst Marketing Agency can help you as a business to build your brand identity and achieve success in your industry. Your marketing efforts can help you reach more people and attract new customers, which will drive sales and revenue growth. If done correctly, you will have the upper hand over your competition.
- Opens New Doors
Some people may think that brand identity would limit you to producing a particular good or offering a predefined service only; they’re wrong. Brand identity makes you recognizable and reputable enough that your loyal customers would trust you with anything you want to sell. It opens new doors and creates opportunities for diversification. When the buyers know you’re reliable, you can promote a new product launch easily. Many people will be in line to sneak a peek at what you have in the corner. Many of them would already be looking for a solution to a pre-existing problem from your company. Even if your current customers line up differently from your new business’s targeted audience, they will assist you through word of mouth.
- Improves Company’s Value
The thing that defines a business’s growth and success is its company’s value. Brand identity is a factor that keeps on building your company’s commercial and financial value. It attracts investors and buyers and lets you set a price higher than usual because you already have a vast and loyal customer base. Brand identity would increase sales, improve growth and offer diversification opportunities for new markets. This is everything an investor is looking for. A powerful brand image would give them the satisfaction they are looking for and something they believe in.
Conclusion
In a nutshell, a company’s worth is defined by its future regarding its wealth, customers, and reliability. A brand identity gives a purpose to the people of the business by defining the goal to be achieved and directing them according to the brand’s persona. It attracts and retains customers, employees and investors. And open new doors of industry innovations, opportunities, connections, and networks.
