10 Major Benefits of a Very Strong Brand Recognition With Good Examples
What company hasn't dreamt of being the major brand that dominates their industry? None. But dreaming about it isn't enough, a lot of work and time go into building brand recognition. Building a brand is a lot of work that isn't limited to just one industry but among the target audience. The number one builders of a brand are the clients. Happy clients will enhance the reputation of a brand and give free exposure.
The need to create a strong brand goes beyond making a good logo or having a catchy tagline. The target audience must be able to relate to the brand. It should be something that shares their values. Something they would share with potential customers without a second thought. There are a lot of benefits of having strong brand recognition.
Here are ten of the major benefits of strong brand recognition with examples:
Your first question is naturally "Why is customer recognition important for my brand?" To answer this, we should first understand what customer recognition is. A customer is someone who buys a product or service. Recognition is the action or process of recognizing. So customer recognition means a customer recognizes a brand with ease.
Back to the question, it is important because when a brand is recognizable, it will have top-of-the-mind awareness of any customer. Buying is usually an emotional decision rather than a practical one. So when a customer recognizes a brand, they are more likely to choose it. When shopping online, 89% of consumers are more likely to visit Amazon than other e-commerce sites.
In April 2021, the Nigerian Investor Value Awards (NIVA Awards) recognized the leading investment firms in Nigeria. The criteria for the awards included profit margins and sustainable value creation. And the winners included Seplat, United Capital, and CAP PLC. Not long after receiving this award, Seplat put a link on their homepage about this news. This way, their web visitors know that they are an award-winning firm. This tactic not only boosted their credibility but exhibited their sense of pride.
Competitive Edge in Market
A business with strong brand recognition has an edge over its competitors in the market. This is simply because customers recognize and back your brand. The more recognition your brand receives, the more the competitive edge.
A very good example of this is Starbucks. Over the years it has maintained its competitive edge over its major competitors. The major reason behind that they always improve brand recognition.
Easy Introduction of New Products
It is easier for a company with strong brand recognition to introduce new products. They don't even have to spend a lot of money on advertisement or marketing. Their loyal following get excited about whatever product and anticipate its release.
Mobile phone giants, Apple, are a good example of this. Anytime they announce a new product, a lot of customers pre-order it without caring about what's new or the cost of shipping it to Nigeria.
Customer Loyalty and Shared Values
When customers have shared values with a brand, they are attracted to it. Once that happens and constantly delighted, they become loyal. All strong brands convey these values to build an emotional connection with their clients. Once a customer is loyal to a brand, the likelihood of their children becoming loyal is increased.
The English Premier League is a perfect example. There is no way you can discuss brand loyalty and shared values without mentioning them. There is a strong bond holding the teams and their fans together. It doesn't matter if they have met before or not. It doesn't even matter if the fans belong to warring countries. All that matters during the match is their desire to win!
Enhanced Credibility and Ease of Purchase
Another important benefit of having a strong brand is enhanced credibility. As long as you stay true to your values while building credibility, you will also build loyalty. As a brand's credibility increases, so also do the customer's ease of purchase.
Look at Amazon, for example, over the years they have built the credibility of their brand. Nigerians, who usually don't like shopping online, trust them, buy items, and ship from the USA to Nigeria.
Image of Size
When a brand is strong, potential customers believe they are a large and established business. Everyone assumes only large businesses spend money on adverts and promotions. So if a business gets effective branding, it looks larger than it actually is. This is important because potential customers will trust them to meet their needs beyond the present.
OLX Nigeria enjoyed this benefit when they started. They leveraged the success of their South African counterpart and used their catchy slogan – Sell it! Though they operated from a small office, everyone assumed they were already successful before they actually were.
Image of Quality
If you are handed two shirts, only one of which is branded, which would you assume has a higher quality? The branded one of course! It is the same way you will pick a recognized shirt or shoe brand over a newer unrecognized one. This is simply because when a brand is strong, an image of quality is projected.
Gucci is no doubt one of the first names when it comes to fashion clothes and bags. People who can afford it buy their products regardless of how it looks because of the assumption that it has good quality.
Image of Experience and Reliability
When you see a strong brand, one of the first things that come to mind is experience and reliability. When a brand is strong, people assume that they are more reliable and trustworthy than a weaker one.
If a person goes to the market and sees two phones, Tecno and Infinix, he is more likely to pick Infinix. Why? Because Infinix's brand is stronger. It doesn't matter that Infinix didn't start production six years after Tecno. What matters is that Infinix is seen as a more reliable brand.
Enables You Link Multiple Products
Brands that make their name from a particular product are able to link other products to it. Provided the new products are just as good as the first, your following increases.
Coca-Cola made their name from their Cola drink. Over the years, they have diversified and produced other drinks.
Employee Recruitment and Retention
All previous benefits we have talked about are from the customer's point of view. Another benefit of a strong brand is recruitment and employee retention. A strong brand tends to recruit and keep the best talent available in the workforce.
When strong brands like KPMG make a job advert, they receive 2.5 times more applicants than weaker ones. These strong brands don't only attract talent, they also keep them. Provided a brand can keep the promises to the employees, they won't be easily poached by competitors.
What Are Some Benefits of Branding For Small Businesses in Nigeria?
- A good brand helps your business stand out from competitors even if it's a saturated market.
- An established brand makes your business appear professional, which in turn gives you credibility.
- A solid brand sways potential clients to see your value and pay you your worth.
- Small businesses with good branding help them gain recognition and keep customer loyalty.
- Small businesses with established branding can easily introduce new products and services.
Connect With Us
It is not easy for small businesses to create a strong brand since nothing amazing happens overnight. Are you ready to take the first step in the right direction? Read this article on branding tips for small businesses. If you are a business owner, connect with us. You can also share how branding is working for your business in the comments section.