President of WebFX. Bill has over 25 years of experience in the Internet marketing industry specializing in SEO, UX, information architecture, marketing automation and more. William’s background in scientific computing and education from Shippensburg and MIT provided the foundation for MarketingCloudFX and other key research and development projects at WebFX.
Why branding is important: Key takeaways
Branding refers to creating a unique identity for your business or offerings through your marketing messages, packaging, or customer experiences.
Branding is important for businesses because a strong brand creates a memorable impression.
Building relationships and fostering connections with your audience, who can eventually turn into loyal customers, are also some of the branding benefits for businesses.
Whether you are a multi-franchise corporation or a humble shop on the street corner, you cannot deny the benefits of branding for your business. A strong brand gives you a distinctive character and elicits positive feelings from your audience, thus encouraging them to transact with you.
If you want to understand the importance of branding for your business and how you can use this strategy, keep reading.
What is a brand?
What is a brand?
A brand is a business or a product that consumers perceive to have a unique identity.
Your brand is not just your logo, business name, or website colors. It’s multiple components that work together.
You can create your brand through strategic design, messaging, and packaging. Together, these elements will set your product or business apart from your competitors.
Simply put, your brand is what you offer, why you’re providing it, and what makes it different or better from competitors. It communicates to your target audience what they can anticipate from your products and services.
What is branding?
Branding refers to creating the unique brand identity of a product or business through messages, design, packaging, and events.
This strategy helps your target audience easily recognize your business or offerings among your competitors.
Take M&Ms, for example. One of the most popular candies, M&M’s is easily recognizable by its characters.
“Create a lasting impression for your audience by keeping your logo, aesthetics, tone of voice, and style, striking and consistent,” says Danélle Wright, Interactive Project Manager at WebFX.
The importance of branding
Branding is an important strategy for businesses because it creates a notable identity that sets them apart from their competitors. Branding also provides a consistent experience for your prospects, fostering brand recognition and familiarity.
Expert insights from
Danélle WrightInteractive Project Manager, WebFX
“Branding goes beyond just appearance. It is the core of your identity, the distinctive element between you and your competitors.”
Your brand is the promise you make to your customers. Who you are, who you want to be, and who people perceive you to be are the reasons branding is important.
10 benefits of branding
Here are the top 10 reasons why branding is important for your business’s success.
Creating a recognizable and unique brand identity helps your business stand out from competitors. It enables customers to recognize and remember your products and services from others with similar offerings.
Work on your brand positioning to highlight your uniqueness, which draws customers.
2. Recognition
Providing a consistent brand experience makes it easier to build brand recognition or familiarity.
When your customers are familiar with your brand, they are more likely to choose your products and services over others. Something as simple as choosing your signature brand colors can boost brand recognition by 80% among your audience.
“The most famous brands in the world can easily be recognized, sometimes by a single element but also by the strong, consistent message and brand they’ve built,” Danélle shares. “This consistent brand image creates confidence and dedication, making them irreplaceable to their audiences.”
3. Trust and credibility
If your brand resonates with your target audience, it will inspire trust and confidence in them. Another important aspect of branding in marketing is that a well-established brand can communicate its values, quality, and reliability, making advertising and promoting your products easier.
“Even a top-notch product can get overlooked in the crowd without a powerful brand to lead it,” Danélle points out.
4. Customer loyalty
Consistent branding fosters customer loyalty and encourages return visits and future purchases.
When customers have positive experiences with your brand, they are more likely to become loyal advocates and recommend your brand to others online or through word of mouth, allowing you to build a larger customer base over time.
5. Brand equity
Strong branding brings in more money. When you enhance your brand’s value and trust with your audience, it can lead to increased customer demand, more sales and lower price sensitivity.
In fact, 43% of consumers spend their money on brands they’re loyal to.
6. Emotional connection
Effective branding taps into emotions and creates a connection with your customers. When people feel emotionally connected to a brand, they develop a sense of loyalty and affinity. Your brand can even present engaged employees who are proud to work at your company.
Branding extends beyond just being recognized. It is the personal representation of your company, the communication that connects with your intended audience, and the emotional bond with customers that transforms them into dedicated supporters.
Your brand helps to position your business in the market and target specific customers. Your marketing positioning, including your unique value proposition, must be translated into your visual branding, content, product and marketing efforts.
8. Consistency
From your marketing campaigns and social media content to your product packaging and communication style, branding ensures consistency across all platforms and channels. A consistent brand voice and tone create a cohesive brand experience, reinforcing your brand’s values and personality.
9. Brand advocacy
When your brand cultivates a community of loyal customers, they become brand advocates. This means they actively promote and defend your brand, contribute to positive word-of-mouth marketing, and expand your customer base.
10. Business growth
Ultimately, branding plays a pivotal role in driving business revenue. With increased brand visibility, you attract new customers and earn their trust, which leads to increased sales.
In fact, a consistent presentation of your brand can help you increase your revenue by 23%. Additionally, the more your business grows, the more potential applicants want to work for your brand.
Examples of good branding
Now that we know what makes a good brand, let’s dive into five examples of companies that do it well and why branding is important to their success.
1. Microsoft
Type of branding: Corporate
One of the most recognizable examples comes from the world’s leading technology brand. Microsoft aims to offer software and simplified solutions to its customers. Their four-block icon represents the different focus areas in the Microsoft ecosystem. The window-like design is meant to evoke the company’s flagship software product, Windows. Four simple boxes of color project the company’s mission, product suite and corporate identity.
2. Starbucks
Type of branding: Product
The green and white logo on a white coffee cup is all you need to recognize the major coffee brand. When you think of grabbing a quick cup of coffee, your mind automatically thinks of Starbucks. Their quality coffee and ordering system that is consistent across all branches are elements that add to its strong product branding.
3. Tony Robbins
Type of branding: Personal
Tony Robbins became a brand name after many years as a reputable life and business strategist. He helps others create the life of their dreams through coaching programs, seminars and books. People recognize him by the way he connects with his audience and displays his charismatic personality with an energetic drive to succeed. His team markets his products and services by using professional images across all online platforms.
4. Eiffel Tower
Type of branding: Geographic
Tourist attractions and areas of natural beauty set cities, regions and even countries apart from other demographics. The Eiffel Tower is instantly recognizable as a French national icon, and many businesses in the region use this image to identify their location. Another example of French geographic branding is the vineyards in the region of Champagne that leverage their location to sell premium wines.
5. Airbnb
Type of branding: Service
Airbnb emerged as a successful company in a short period. Their mission is to provide unique travel experiences and convenient customer service and support. The heart-shaped logo in soft colors connects with customers on an emotional level by conveying the idea of community and compassion. Airbnb shares content that creates amazing visions with an inspirational and creative tone of voice.
Branding FAQs
Let’s answer some of your questions about branding:
1. What are the different types of branding in business?
There are different types of branding in business worth noting:
Personal branding — a brand associated with a person
Product branding — the most common type that’s based on a product
Service branding — branding that’s focused on the service a person or company provides
Retail branding — a type of branding connected to stores and retailers selling specific products
Cultural and geographic branding — branding that’s impacted by your target audience’s local conventions
Corporate branding — branding that’s focused on the look and success of a business
Online branding — all communication and branding that happens online or digitally
Offline branding — all offline communication and branding, such as packaging
Co-branding — two or more brands partnering together for the same product or service
Ingredient branding — the achievement of one component of a product or business
2. Branding vs. marketing: What are their differences?
While both branding and marketing are important to grow your business, they are two different strategies.
Branding creates your company’s or product’s identity and reputation. Meanwhile, marketing includes strategies and campaigns that promote your brand to your target audience.
3. What are some branding best practices for SMBs?
Here are some branding tips for small and medium-sized businesses:
1. Define your brand’s purpose and identity
Your brand purpose is your business’s or product’s why.
Why does your business exist? Why did you develop your product or service? What pain point is your product trying to solve?
These are some of the questions that can help you define your brand’s purpose.
Meanwhile, your brand identity shows the personality of your company. Aside from your logo and visual identity, your brand identity also reflects your company values and your tone of voice when communicating with your audience.
2. Determine your target audience
Your target audience is your intended customers or prospects. They will likely benefit from your product or services.
When defining your target audience, be specific and consider your audience’s:
Demographics (such as location, age, and income)
Firmographics (such as industry, location, and size)
Psychographics (such as lifestyle, hobbies, and values)
3. Craft your brand strategy
Your brand strategy is your long-term plan that outlines how you’ll build rapport with your target market and foster loyalty as your brand grows and evolves.
When creating your brand strategy, think of it as a roadmap that your team can use as a reference when communicating with your audience and representing your business. It must clearly define your brand purpose.
4. Create a brand style guide
A brand style guide details the proper use of your logo, brand’s visual elements, and tone or voice when communicating with your audience.
Your brand style guide instills consistency among your team members when communicating with your audience, regardless of platform. When creating your brand style guide, ensure you have guidelines for your visual elements, such as fonts and colors.
Include details about your brand voice and tone, too. Does your brand communicate casually with your audience like a friend? Or should you sound like a colleague who uses professional language?
You can also list down the dos and don’ts when using your logo. Specify words that you want your business to use and terms you must never use.
Connect with your customers through branding
Branding is a critical investment if you’re looking to grow your business, increase site traffic, and boost your online visibility and brand awareness. Our team at WebFX will review your strategic objectives and create a plan that aligns perfectly with your branding goals.