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. – Seth Godin
Branding is crucial for all start-ups because it increases their value in the eyes of the customers. Start-ups from the start should add branding to their list of strategies because without branding their whole business could go for a toss. It also helps in more efficient communication and builds trust in the minds of the customers which keeps them coming back for more.
Here are six reasons why branding is necessary for start-ups:
1. Greater visibility
The more the visibility, the greater is the awareness. Your brand name might be read by a consumer on a social media platform; when he sees it again on some other platform, he will be able to reconnect. Proper branding also increases visibility amongst investors and stakeholders and they will be more likely to team up with your business.
2. Stronger Positioning
Good branding also leads to building of positioning in the minds of an individual. Your identity will resonate the values and beliefs your brand stands for with the customers’ expectations and will reflect a proper positioning in the minds of your customer.
In the era of cut-throat competition, many start-ups offer similar services and products. To stand out, you need to adopt certain branding strategies through which the customer can relate to only your brand. It could be an innovative logo or a brand name which differentiates into form the other products in the market.
4. Better recognition
Branding leads to better recognition in the minds of the customers. Because your start-up is new, it is important for customers to recognise it immediately.
For instance, popular brands are recognised by customers very easily. When you see a large M, you instantly know it is McDonalds or when you see Colonel Sanders, you immediately recognise KFC. Thus, branding is important to create and improve recognition.
5. Creates/fosters trust
If you build a company which is a brand, people will automatically trust it because they are assured of the quality and the values they are going to derive from the brand. Instead, if it’s a generic product, people will not go for it because of lack of assurance. Credibility and trust are perceived in the minds of the customers based on branding.
For example, Customers perceive Ola to be a reliable brand over generic taxi services.
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6. More motivation for employees
Employees in a company will not be very inspired to work if they are working for a generic product and just focusing on increasing sales. Instead, if they’re working under the flagship of a brand name, they have a set goal that they need to make the brand bigger which will motivate them to work harder.
Brands like Snapdeal, Prisma, Abof, Zomato, Bewakoof etc have gained popularity in a very short span.
Hence, we now know why branding is more than just a compilation of a name, logo and symbols and more importantly, why it is crucial for your company.
Image credit: mbrownassociates.com