What is a Brand Identity and Why is it Important?
What’s the first thing that comes to mind when you think of Volvo? You might think ‘safety’? What about Disney,
you might think of ‘fun’? Or how about even for Chanel? You may think ‘timeless luxury.’ These attributes and
images that flooded your mind are due to strong branding.
What is a Brand?
The Dictionary of Brand defines it as a person’s perception of a product, service, experience, or organization.
To hone the concept in a little further, American author and speaker Marty Neumeier says “Your brand isn’t what
you say it is. It’s what they say it is.”
A brand is the personality of a business, an outward expression of not only its goods and services, but its ethics, reasons, and core values.
While several factors go into creating a successful brand like Volvo, Disney, and Chanel, one of those elements is brand identity.
Your brand isn’t what you say it is. It’s what they say it is.
– Marty Neumeier
6 Reasons Why Having a Unique Brand Identity is Important
- Attract Ideal Customers
Haphazard marketing in the attempt to appeal to everyone is an inefficient way of broadcasting your message out. Lack of visual consistency looks disorganized, careless, and unprofessional which will have a negative impact on customers’ perception of your brand. Brands are like people, and a company that has a personality is far more memorable and attractive to customers. With a strong brand identity, your business will make a bigger impact on your target audience and attract them to your product or service.
- Command Higher Prices
“Companies that present a cohesive, distinctive, and relevant brand identity can create a preference in the marketplace, add value to their products and services, and may command a price premium.” (Schmitt & Simonson, 1997). People are willing to pay premium prices for premium brands. For example, let’s assume you sell premium coffee. You create a brand identity that looks elegant and expensive, and one quick look tells people that this is a high-end product. This is the power of brand identity: by employing visual elements such as the logo, tagline, color palette, typography, image style, etc., you can position the look and feel of your brand to be premium or aspirational even (of course ethically speaking), you’ll need the substance to back the visuals claims up. Brand identity will bring your brand/business by communicating your vision, message, and values to the world.
- Differentiates You from the Competition
Every brand seeks to differentiate itself from the competition and having a strong brand identity will certainly allow you to stand out. Brand identity helps you translate your intangible brand (that is your mission, values, goals, and personality) into the recognizable visual and tangible assets or symbols that people will use to identify you with and separate you from all other brands. And when your business is differentiated from the competition, this gives you a competitive advantage in the minds of your customer which avoids commoditization and ultimately leads to increase profit margins.
- Creates A Perception of Quality
Having a well-designed brand identity creates a perception of quality from the perspective of your target audience. Among all brand associations, only perceived quality has been shown to drive financial performance. It is often a major (if not the principal) strategic thrust of a business. Having a strong brand identity shows a high level of commitment and care towards your business and reassures your clients that they can put their trust in you.
- Increase Customer Trust & Loyalty
59% of shoppers prefer to buy new products from the brands they trust. Retaining customers is important for businesses. As the adage goes, “it is simply much less costly to retain customers than to attract new ones” Having a strong brand identity makes your brand easily recognizable in a saturated market. It allows customers to connect with your products/services and the brand itself. This means your customers are more likely to develop an emotional connection with your brand, forming a stronger customer-brand relationship and encouraging loyalty.
- Elevates Brand Awareness
Brand awareness reflects both the knowledge and prominence of a brand in a customer’s mind. Having a strong brand identity can help in increasing the awareness of that brand by creating recognition. Before people buy products from your company, they need to be aware of it. This eventually turns into trust. You will earn the trust of people who have yet to make a purchase, simply because they recognize your brand. Then, when those people need your products or services, they are more likely to choose your company – a brand they recognize and trust.
If brand awareness is high and customers trust the brand, that business/brand will gain a competitive advantage over their competitors.
Get Started with Your Brand Identity
If you have yet to establish a brand identity, or if your brand needs a refresh, it’s not too late to get started. While it might seem like a daunting task, creating a brand that stays relevant and distinctive in a busy marketplace will pay off in dividends. Schedule a call with us today. We can work together and create a well-crafted identity that truly tells the story of your brand.
To your distinctive brand,