What Is Branding and Why Is It Important?
Your business branding is one of the keys to the success of your marketing efforts, no matter what type or size business you run. Creating an implementing a clear business brand will help your business earn credibility, set customers’ expectations, make the purpose and values of the business clear to customers, help your business stand out from the competition, and more. With all of those positives from good branding, you want to make sure your business is branded well
Business branding is a universal constant no matter what size business you’re running and marketing. The smallest mom-and-pop shop down the street needs a positive brand to thrive and so do the biggest corporations. No matter what industry you’re in or the size of your company, a positive brand is important for your business’s future.
It would be pretty easy if creating a brand was simply about slapping a logo on your product. But there’s more to it than that. Your brand is what customers, employees, and others who you do business with think about your company. Your brand is basically the equivalent of a personality for a company—the ideals, beliefs, and values that your company projects to the world.
Ideally, your brand is something that you give careful thought to when you first launch your business. But many small business owners get so busy in the day-to-day of running their company that brand development doesn’t enter their thoughts until much later. That’s okay, too. Even if your company has been around for a while, it’s not too late to consider business branding. In fact, just coming to this article means you’re already way ahead in the game!
The Goals of Business Branding
There are a lot of different opinions out there about what exactly constitutes a brand. Is it your logo? Your typeface? Your website? Your social media messages? Those are things that implement your brand, but your brand itself comprises the thoughts, feelings, and ideas that people associate with your company.
Amazon CEO Jeff Bezos defined brand very simply as “what people say about you when you’re not in the room.” Seth Godin, a popular entrepreneur and blogger, gives a longer definition:
“A brand is the set of expectations, memories, stories, and relationships that, taken together, account for a consumer’s decision to choose one product or service over another. If the consumer (whether it’s a business, a buyer, a voter, or a donor) doesn’t pay a premium, make a selection, or spread the word, then no brand value exists for that consumer.”
Godin’s definition clarifies the goals of branding. Developing a unique brand sets you apart from competitors, giving customers a reason to prefer your business over other businesses. Branding also encourages customers to keep coming to you for products or services by giving them a consistent and positive experience.
Your brand shines through in pretty much everything that your business does on a regular basis, including the following four areas:
- Visual Brand Identity, such as your logo, website, and color scheme
- Brand Voice, such as your blog posts, mission statement, and website copy
- Brand Values, such as the types of causes your company supports
- Brand Personality, such as your company’s culture and customer service philosophy
You can see for yourself the power of branding by asking yourself how you feel about companies that you regularly do business with. For instance, what comes to mind when you think about your favorite beverage or your favorite restaurant? Now, what comes to mind when someone mentions your cable or cell phone company?
The memories and associations that these two brands inspire might be very different. Which one are you more likely to continue doing business with in the long run? Does the logo come to mind, or are there more powerful concepts that you associate with the brand? Putting yourself in the shoes of a customer can help you establish a lasting, positive brand identity for your own company.
Why Is Business Branding Important?
In the long run, the importance of business branding comes down to a few things. We explained them above in more detail but if you want the shortlist, here it is:
- Giving customers positive experiences and memories of your brand
- Giving customers a clear vision of your brand
- Making it clear what your business stands for and its values
- Creating consistency within the brand
- Makes your business stand out from competitors
- Creates credibility for your business
How to Brand Your Business
If you’re launching a new company, you’ll be shaping your brand from the bottom-up. But if your business has been operating for a while, it already has a brand. Starting with what your customers think about your brand currently can help you refine your brand as you grow. So that’s a logical place for existing businesses to start if they want to change their brand or make it more clear through a business rebrand.
These are some ways to find out what customers think about your brand:
Online surveys: Free online survey tools like SurveyMonkey let you ask questions to a cross section of your customers. You can ask both regulars and less frequent customers what adjectives they associate with your brand, what competing brands they shop from, and what they like and don’t like about your company.
Search data: Content marketing tools like Google Trends and Google Analytics let you check what terms people are searching for together and what search terms are associated more frequently with certain brands.
Social media trends: If your company is active on social media, that can be a great resource for evaluating your current brand identity. Based on which posts received the most and least engagement, you can learn what customers see you as an authority on and whether you have that established credibility. Twitter even has a search function for trending tweets, and you can dig deeper into data if you have a paid social media advertising account.
If you have a bigger budget, you can also run a focus group and get your customers more directly involved with your branding and rebranding efforts. But for most small businesses, the options above are cost-effective ways to get insight into your current brand.
Step 1: Do Some Branding Exercises to Establish Your Brand Identity
Once you assess your current brand, you’ll have some idea about how customers currently perceive your company. But you might find that many customers don’t really know you, or they might be confused about what it is that your company actually does or the values of your company.
This is your opportunity to reshape your brand into something you’re proud of. But don’t just rush into creating a new logo or revamping your website in a full-on rebrand. You’ll need to think about your brand from many perspectives and talk about it with many different people. As part of the process, you can do some fun exercises to help you develop a compelling brand.
Here are some branding exercises that can help you figure out your company’s brand identity:
Start With Your Story
Your business’s brand starts with your story. This includes your origin story about who started your business, why, and when. But there’s also the story about what your brand means to your customers.
Maybe your product or service makes it more pleasant for your customers to do a regular activity, like eating or cleaning. Or maybe your product or service brings customers closer to their family members and friends. How your product or service fits into the customer’s life significantly impacts your brand.
To find your business’s story, you should talk to your customers and find out what pain points you’ve resolved for them. It’s great to ask customers in person, but you can also conduct customer surveys or measure trending content to understand how customers are interacting with your brand.
Think About Market Positioning
In order to develop your brand, you need to know your target customer. A company that targets millennial consumers, for instance, will use different marketing strategies and communicate differently than one that targets baby boomers.
You can do a fun branding exercise with your team to figure out your market position. Hand out two Post-its to each member of your team (or to everyone in your company if your business is small enough). Ask each person to imagine they’re attending a party and the only people invited are your target customers.
On one Post-it, have people write down how your target customers look. What’s their approximate age? Are they wearing expensive clothes? What kinds of accessories are they carrying? What kind of lingo do they use?
Knowing your ideal customer is very powerful because you can tailor your messaging and all of your brand collateral to a particular set of customers.
Find out Your Unique Value-Add
This next exercise encourages you to think about your company’s unique value-add in what may be a crowded field of similar companies and competitors. If you do everything just like your competitors, then your customers have no reason to buy your product or service.
To understand how your company stands out, repeat the same exercise as above, except this time imagine that your competitors are on the guestlist for the party. How do your competitors look? How do they speak? What’s important to them? This branding exercise will get you thinking about what other companies are doing that you can either emulate or distinguish yourself from.
You can also do a different exercise where you hand out Post-its and ask everyone to write down an adjective that makes your company unique. Are you more modern than competitors? Do you provide better customer service? Do you provide customized products, whereas your competitors are one-size-fits-all?
Whatever your point of difference is, the point of this branding exercise is to find it and embrace it.
Evaluate Past Ups and Downs
Your business’s past successes and failures can help define your brand. If there are certain things that have worked really well for your business in the past, that might be something that you want to emphasize in your brand. And things that you found challenging might inspire and shape your brand in the future.
On a Post-it, write down a few of your proudest moments as a small business owner. What has your company accomplished that’s worth celebrating? On the flip side, you should also think about the times that weren’t so good for your company. Note any lessons you can learn from.
At some point, your brand concept and what your company actually does on a regular basis will collide. And the two things should be in sync with each other. Draw on your successes, learn from your failures, and be transparent with your customers to build up a powerful brand.
Think to the Future
If the previous exercise was about the past, this next one is about the future. Every good company aspires to be something better (notice we didn’t say bigger, but better). The basics tenets of your brand can remain the same over a long period of time. For example, Apple has built a reputation as an innovative brand for the last 40+ years. However, a brand is something that you’ll want to refine over time as the market and technology change.
Imagine that your company makes front-page news five years from now. Ask yourself what the story is about. A charitable cause that your company aligned with? A product or service that broke new ground in your industry? Raising millions of dollars of venture capital? The answer can give a clue about what you consider central to your brand identity. By thinking about the future now, you can also prevent brand failures and having to rebrand down the line.
Step 2: Develop Your Brand Positioning Statement
Once you’ve gone through these brand exercises, you should have a much clearer idea about what your business stands for and what you want to convey to customers through your branding.
At this stage, it’s a good idea to write up a brand positioning statement. This might sound intimidating, but a brand positioning statement is actually quite easy to put together.
Your brand positioning statement should mention the product or service that you provide, your target customer, and the benefit you provide over competitors. You should also briefly mention how your product or service delivers the benefit. You can package all of this into a one- or two-sentence brand positioning statement, like this:
[Brand name] is a [company] that provides [X] with [Y] by [Z].
Your brand positioning statement will help you focus your messaging as you create your brand assets. We’ll dig into this in more detail in the second part of our branding series. But for now, it helps to think of the brand positioning statement as your north star. All of your advertising, marketing, and promotional efforts should align with and support your statement.
Step 3: Create Your Business Branding Assets
If you’ve done your customer analysis and the branding exercises we summarized above, then congratulations—you have established a brand identity for your company! This will go a long way toward your business’s success as you grow. Of course, like most anything in business, a brand isn’t static. You have to refine and adapt your brand as your company grows and as you face new challenges and opportunities.
But the most difficult part in your branding journey is over. The next part—compiling all your brand assets or brand collateral—is easier to do and you can outsource much of the work to experts. That said, making sure the your brand is well-represented and that all your brand assets are consistent with each other takes some planning.
You’ll want to make sure that on any and all of your social media channels, you have your new logo and new business branding materials optimized. This means making sure you change your profile images and thumbnails and maybe even your bios and username if necessary.
If you decided to go for a new logo, new font, or color scheme, you might want to obtain the services of a freelance designer. There are a number of websites out there where you can find freelance marketers for hire. This might be worth splurging on because you want to make sure your new assets all match perfectly and that you won’t have to go back and change them again any time soon. Take your time here and make sure that you get the designs and the angle just right.
Remember why business branding is important: conveying a clear message and values, setting your business apart from competitors, creating brand experiences and memories for customers, and more.
Step 4: Implement Your New Business Branding
Once you have all of your assets finalized from step 3, you can go ahead and start implementing your new business branding assets. Remember any new logos or fonts mean changing you social media pages, business cards, maybe even a new sign if you have a brick-and-mortar location for your business.
This may start to add up so you can consider spreading out the changes over a few months or you can consider your funding options and business financing. Or if you have a credit card with a high enough limit, see if you can get the new assets on to your card, as long as you can pay it back so it doesn’t hurt your business credit score of course.
if your business has been around for a while, you can also announce your new branding efforts and make it clear that you kept your customers in mind when making the changes. If customers took part in surveys or were particularly helpful, consider giving them a shoutout, or having a little customer appreciation get together to show your thanks and your dedication to them. This will also help establish your brand as one that is customer first, and one that doesn’t let their input or needs fall by the wayside.
The Bottom Line
Whether your business is big or small, needs some light rebranding or all of the work of forming a brand for the first time, business branding is key to your marketing strategy as a business.
Keep your customers in mind while deciding on your branding, and keep in mind why branding is important in the first place. You want your business branding to be clear about what your business is or does, what its values are, create a strong memory or impression for your customers, and biggest of all you want your branding to be consistent across the board.