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1) Earn Trust
Have you ever been on a random website ready to buy something? You have your cart filled and that credit card in hand.
Then you start to second guess yourself. How do you know if this is a legitimate business? Anyone can create a website and say almost anything they want. You head over the Amazon to buy it instead. An unscrupulous seller can just as easily be on Amazon. But it feels safer because a brand has been built around it.
Think about this in brick-and-mortar terms. If you need your car repaired, do you go to the dealership? Or do you go to an independent garage you’ve never heard of? Unless you received a great recommendation, you’ll likely go with the one you know.
Whether you’re an online business or brick and mortar, all consumers will have some “trust issues” with businesses they don’t know. Because of it, they either don’t buy. Or they buy in small quantities to test the waters. Both of these cost you as a business.
Earn the trust that makes people confident in their purchases by building a brand.
Because they recognize and trust your brand, they’re more likely to notice your ads and click on them. If they see that your brand shared something on social media, they’re more likely to check it out because of the brand behind it.
This makes it easier and faster to consider their options and choose you. They may not even need to look at other brands.
Branding is that powerful.
3) Easy introduction of new products.
When you already have a strong brand and loyal customers, it is often easier and less expensive to introduce new products or test them out before you further invest in them. If you have a loyal brand following, your customers will often be interested in your new products and even anticipate them being released.
4) Charge a Brand Premium
Not only do people buy more when they buy from brands. Brands can also charge more. One of the benefits of branding is that it creates a perceived value beyond the fair market value of an item.
Think about it. Are you willing to pay more if you know that something will be of higher quality?
Branding can help establish an expectation that something is higher quality than the competition, even if the difference is minimal.
Do you pay more for an item because you also want to “own” the brand? It may be a certain brand of watch. A car. A handbag. A smartphone. It may be something as seemingly insignificant as the coffee you get each morning around the corner. Or your bottled water brand of choice.
You may even be in a professional or social circle where owning a certain brand is expected. Owning a “knock-off” or generic is looked down upon. Why do we pay $4 for bottled water that we could get for $0.05 from the tap? It’s mostly about branding.
Each of these mentalities contributes to people’s willingness to pay more because of the added benefits. Some of them are real. Others are simply good branding built around a feature that might otherwise go unnoticed and underappreciated.
5) Decrease Hiring Costs
Your employees are the lifeblood of your business. You need the right people in the right positions to make money for your business. They help you deliver the expected results to customers.
One of the little-known benefits of branding is that it makes it easier to recruit top talent who share your company values, work ethic and mission. A report compiled by the people at LinkedIn found that a great brand can decrease hiring and training costs by as much as 50%.
6) Generate Promoter Activity
Your loyal customer goes out of their way to share your brand with others. They write some of your longest and most glowing reviews. They want others to use your brand.
When others use and appreciate your brand, this makes the loyal customer feel good because they recommended it.