While discussing with a friend about the app developer of WhatsApp, a few days earlier, we ended up on the much talked about topic of Facebook acquiring WhatsApp for approximately US$19.3 billion. We got compelled to think about the commonly asked question: Why does Facebook have to pay a large sum of money to acquire WhatsApp? Here we talk about the Importance of a Strong Brand Identity
They could simply spend less money if they created a similar application with the assistance of their own developer. If you’ve ever wondered about the same question, the answer to it is very simple. Facebook didn’t pay for the application but WhatsApp’s brand!
An Essential Question Arises Now: How Can We Define Branding And Its Benefits To Businesses?
In the past, the brand was defined as the symbol, design, name, term, or other similar distinctive features that allowed customers to distinguish between services and products. Today, a brand refers to a promise that one makes to offer customers the best experience.
It helps customers understand what to expect from the services and products and what sets them apart from competitors. The brand is a company’s intangible yet one of the most precious assets.
Per year, nearly millions of new businesses get established. That equates to approximately 3 to 4 startups every second. You may now wonder what the success and failure ratio of these new businesses is. About 90% of the companies fail, and those who survive; struggle to establish a brand name.
Advantages of a Well-Established Brand Identity
For a successful company, the brand identity needs to be strong and compelling. There are many ways in which a brand identity can help the business. Below we’ve listed the benefits of having a solid brand identity that will help your business long-term.
Assists in Influencing Customers
When you have a strong brand identity, it aids in influencing customers. If your brand name is well-established, even your competitors’ loyal clients may get enticed to test your product after hearing its excellent reviews. In some situations, these can get used as replacements for the actual products. Consider the case when you want to drink Coke but can’t find it. If given a choice between Pepsi and any unknown product, you’re likely to choose Pepsi.
In fact, most consumers will select Pepsi because it is a well-known brand with a strong following. Even consumers with no knowledge of Pepsi’s quality will choose the same since they believe they are very similar.
Helps In Expanding the Company
Having a solid brand identity aids in the expansion of the company. If any businessperson wants to grow their company, the brand will assist in accomplishing this aim. That’s because it allows you to reach out to a vast number of individuals. Many other small and large businesses would be interested in partnering with you.
That might assist you in expanding your reach to new places. It would boost your sales as well as give you a lot of advantages. McDonald’s has established franchises across the globe. They also make arrangements for the location to look similar and pay a set amount of fee.
Helps In Establishing Customer Loyalty
Customer loyalty is amongst the most desired qualities nowadays. The dedication of customers is seen as considerably superior to customer satisfaction. That’s because if you focus more on satisfying customers, there are minimal odds they will come back to your brand repeatedly.
Comparatively, if you have loyal customers, you can expect them to return. Well, if you entirely focus on client satisfaction, you should pay attention to competitive promotional offers and price sensitivity. In this instance, you’ll also need to invest money in marketing. You won’t have to be concerned about these if you shift your focus to customer loyalty and achieve your goal.
As a result, you can easily cut back on your marketing budget. If you have more client loyalty, you can reach out to more people through word of mouth. That is the most effective type of advertising.
Helps in Increasing Sales
When you have a strong brand identity, revenues rise significantly. That’s because more people become aware of and trust the services offered by the company. In addition, it assists in reaching a massive number of individuals, resulting in a rise in sales. That contributes to the company’s future expansion and revenue growth.
Helps To Protect You from Competitors
When you have a strong brand identity, your brand gets more preference from the customers. Despite the availability of similar replica products at lower rates, people choose to purchase things from their selected brands—this aids in protecting your business from the competition.
Helps To Launch New Products
Almost every business aims for expansion in the future. When you have an established brand name, it becomes easier to launch new products. Even the newly introduced products get popularity because they get associated with the brand name of your business. Customers believe that they will receive similar quality services and products.
For all businesses, today, having a solid brand identity is a must. The numerous benefits listed above conclude that better results can be produced with branding. New companies can significantly benefit from it and can increase their sales and income.