Why is Branding Important for Your Business?

Why is Branding Important for Your Business?

Think about these companies: Apple, Coco-Cola, McDonald’s, Ikea, Uber, L’Oreal, and Nike. What exactly do these companies have in common? Of course, other than being extremely successful in their respective fields, they’re all companies with exceptional branding, making them immediately recognizable to consumers across the globe.

One doesn’t have to think twice when it comes to the logos or brand colors of these companies. 

So, What Exactly Is A Brand? 

Brand 1018

A brand is a name, term, design, symbol, or any other feature that identifies one product or service from one another. It essentially represents the sum of people’s perception of a company’s reputation, advertising, logo, and all other services. 

Branding is the painstaking process of building your business’s identity which includes a website, a logo, customer service, brand colors, the aesthetic of the brand, mission statement, business values and so much more. But, how can all of these help your business to grow? 

Let’s take a closer look at the benefits of branding for a growing business:

Increases Brand Awareness and Public Recognition 

A professional logo, appealing brand colors and compelling company values can help to increase your brand awareness, thus boosting recognition for your business. Your company logo needs to be clean, easy to remember while still representing your brand message clearly.

There are many ways to get this work done. You can either hire a company that specializes in creating logos, hire a freelancer, or just make it yourself using a custom logo generator. It isn’t all that hard to master.

An intelligently designed AI program will show you through the works and all you need to do is choose the right typeface and aesthetic. Keep in mind that a well-designed logo can help consumers make sense of the “personality” of the brand.  Make sure you don’t make these logo design mistakes.

Another strong piece of branding with a proven track record is a strong customer ethic and values. Think of companies like Starbucks that sells itself as being in the business of building human connections, espousing an almost familial vibe that is both inviting and comforting.

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Dove, the skincare brand has also done an excellent job in positioning itself as a brand that believes that the “real you is beautiful” sending across messages of positivity and acceptance. 

Creates Trust 

People are more likely to purchase from a business that stand for loyalty. Studies find that 8 out of 10 US consumers are likely to continue buying from a brand they trust, even if another brand suddenly becomes hot and trendy.

This may also have a positive correlation with ad receptiveness. More than 75% of buyers pay attention to a brand’s advertising and communications if it is a brand that they’ve trusted for a long time. 

Draws in New Customers 

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One big goal of branding is to ensure that your brand creates a lasting impression on the consumer. The longer a user retains the image of the brand, the more likely they are to share your brand among their friends and families.

Word-of-mouth has the potential to exponentially increase brand recognition to a point where your brand is the first thing that comes up in their mind whenever they’re seeking a solution or service that you provide. 

Pinterest grew from a user base of a modest 3000 to a monumental 73 million, all thanks to its highly successful “Pin it forward” campaign which encouraged users  to create interactive pin-boards and also invite their friends to do the same.

Supports Advertisement Efforts 

Advertisements serve as an essential factor in driving user traffic. But before your company can start creating advertisements, it’s important to create a memorable logo, an aesthetic, and a unique motto to encapsulate your brand identity and mission.

Think of Lay’s tagline “Betcha can’t eat just one”. This simple tagline switches the focus from the taste of the chip to the incapability of us, humans as a species to resist some more salty goodness. Nike’s “Just Do it” embodies the message that the brand is more than just athletic apparel. It’s now a state of mind- If you want to do something, just do it. That’s literally all it takes. 

Builds Financial Value

Brand value is definitely an asset that is worth as much as revenue and sales, if not more. It is one of the main reasons why the market capitalization of a company often exceeds its book value in mergers, acquisitions, licensing, joint ventures, and other financial negotiations. What does all this effectively mean? You’re well-positioned for any future expansions. 

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Inspires Employees

Inspires Employees

It’s a no-brainer that employees are a critical part of delivering upon your promises. They’re the ones directly interacting with the consumers. When they understand the mission of a business, they’re more likely to feel motivated to achieve the goals the owner has set.

A strong brand presence can instill passion into the hearts to the employees, making them believe that they’re a part of a larger movement driving towards progress. 

Heineken in 2016 created a series of videos involving stories of current employees with unique personalities in a variety of locations. They intended to show that their brand revolved around the ambitions of their employees. The result? Heineken saw a 56% increase in applicants willing to work in their one-of-a-kind work environment. 


A well-done branding undoubtedly improves the value of a company, creates trust among its users, provides employees with direction and satisfaction, and more importantly, makes acquiring new customers easier with organic word-of-mouth. It can help you differentiate yourself from the competition and shape the perception of your business in customer’s minds.

Remember, this doesn’t have to cost a ton of money. Smart decisions like designing your own logo can help cut corners and save up on a couple of bucks.

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Avatar of Jonathon Spire
My diverse background started with my computer science degree, and later progressed to building laptops and accessories.And now, for the last 8 years, I have been a social media marketing specialist and business growth consultant.In my spare time I dabble in crypto and various types of automation.
Jonathon Spire

Jonathon Spire

Tech Blogger at Jonathon Spire

My diverse background started with my computer science degree, and later progressed to building laptops and accessories. And now, for the last 7 years, I have been a social media marketing specialist and business growth consultant.

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Jonathon Spire

I blog about a range of tech topics.

For the last 7 years I have been a social media marketing specialist and business growth consultant, so I write about those the most.

Full transparency: I do review a lot of services and I try to do it as objectively as possible; I give honest feedback and only promote services I believe truly work (for which I may or may not receive a commission) – if you are a service owner and you think I have made a mistake then please let me know in the comments section.

– Jon