Lesson 3: Why does my brand matter?
According to Steve Forbes, “Your brand is the single most important investment you can make in your business.” Your brand matters because it is the driving force for gaining and retaining customers.
You’ve got a stellar business and, with a little nurturing, your brand can differentiate you from your competitors and establish trust and loyalty with your customers. Let’s unpack these three key advantages of a successful brand.
Brands drive differentiation
Rarely is there a company without competition, so it’s important that you can identify your competition and make your brand stand out. Your brand explains how you’re different from competitors and why customers should choose you.
Apple and Microsoft are examples of two companies with similar product offerings but different brands. Customers view these companies differently and make purchasing decisions based on their perceptions of the brands.
PRO-TIP
To stand out from the competition you’ll need to do a little research. Learn about local and online competitors. Think about who your customers are and common questions they ask you. Identify what makes your company special and communicate this prominently on your website.
Brand consistency builds trust
Consistency in communication, from branding to messaging to product quality is so important. Repetition equals reputation. Keeping your brand messaging consistent is a key way to set expectations and build trust with your customers.
For example, look at the image of Coca-cola bottles throughout the years below. From 1899 to today, not much has changed in their bottle design except for the shift from glass to plastic. For the most part, their brand has stayed consistent. This takes a lot of discipline, but it builds trust–when you buy the product, you know what you’re getting.
Strong brands build customer loyalty
For customers, choosing between a seemingly endless list of products can be overwhelming; instead, they want to truly connect with a brand and keep coming back to it. Your brand is what builds loyalty with customers, both through establishing trust and creating a shared bond.
Successful brands tap into who their customers want to be, how they want to feel, and what they value — this keeps customers coming back for more. For example, TOMS has built its brand around a spirit of giving, and customers wear their apparel because the brand aligns with their own values and allows them to communicate something about themselves.
In short, your brand matters because it’s what allows you to stand out from the competition so you can gain customers and also keep those customers through establishing trust and loyalty. So, how do you build a brand that will actually do all these things? We’ll find out in the next lesson.