There is so much more to branding than a design, campaign, business strategy or even building awareness with the desired audience. Branding can tip the scales for a consumer deliberating between two similar products from different companies. It’s what tells your company’s story so that consumers can connect with and become loyal to it. And branding is what makes the first impression on potential customers as they encounter your product or service. Here are just a few statistics that highlight the importance of branding:
- 91% of consumers would rather buy from an authentic brand (Adweek)
- Consistent branding across all your channels increases revenue by 23% (Forbes)
- It only takes 10 seconds for consumers to form an impression of your brand (ActionCard)
- Brands that are consistently presented to consumers are four times more likely to experience brand visibility (Lucidpress)
Emotional connection
The way branding influences consumers and their buying habits goes much deeper than you might imagine, and often, it’s based on intangible metrics. In “Buyology: Truth and Lies About Why We Buy,” Martin Lindstorm analyzed a study and found that about 90% of consumer buying behavior is unconscious. So while consumers might not be able to readily tell you what precisely made them choose one brand over another, there are some key factors that are likely playing a role.
Take McDonald’s and Burger King, for example. Many people associate the golden arches of McDonald’s with fond childhood memories of happy meals, whereas they might not have that same emotional connection with competitor Burger King. When given a choice between the two, that nostalgia can play a major role, even decades later. The purchasing decision came down to a feeling, rather than being based on something more concrete.
This shows that consumer behavior isn’t always derived from cold, hard mathematics, but instead comes from sentiments or the relationship they’ve formed with the brand. Studies have shown that consumers will choose a product based on the brand and not the product itself (for example, preferring the taste of Burger King in a blind taste study but opting for McDonald’s when they have a choice). It might not make sense on the surface, but the impact a brand has on a consumer goes much deeper.
Stick with what they know
We are all, to some extent, creatures of habit most comfortable with what we already know and have learned to trust. Nielsen’s Global New Product Innovation Survey found that 59% of respondents preferred to buy new products from brands familiar to them—and 21 percent said they purchased a new product because it was from a brand they liked.
So if a consumer is faced with a decision between two brands—one they’ve seen or used before, and another that is new to them—they will most likely choose the familiar option, even if it isn’t the cheapest one. You can even see this at a young age with children who prefer the name-brand cereal over the generic option. They are basing that decision almost solely on branding alone. Those brands have earned the consumer’s trust, even if it’s only based on the recognizable logo.
Builds confidence
While having a recognizable brand is important, ensuring consumers also associate it with quality products or services is equally as crucial, especially if your products aren’t the lowest priced on the shelf. When your branding portrays value (higher price tag, celebrity brand sponsors, limited availability, etc.), consumers are more likely to pay extra because they’re confident in what they are purchasing.
Porsche, for example, has become synonymous with high-end offerings because they’ve created a perceived value with their cars. When companies ask customers to pay extra for a product or service, what they are really asking is if the customer trusts them enough to spend more. The branding must pave the way to building that confidence.
Creates ambassadors
People listen to people. That’s why having their brands shared and talked about on social media and via word of mouth are so important for companies. To create that type of behavior and loyalty, brands must form a deep connection with their target audience.
Brands that portray characteristics or values that people associate with themselves will better connect with those consumers, hopefully turning them into loyal customers. People want to use products they see as a reflection of who they are. For example, if someone is passionate about the environment, they will be attracted to branding which showcases all-natural ingredients. Branding that is in line with consumers’ self-concept will attract their attention.
The more they know
As consumers become more knowledgeable about a brand—recognizing its logo, packaging, company values, quality, price, etc.—they will be more drawn to it, which should eventually lead to affinity and loyalty. The way you portray your company’s branding affects how consumers will perceive it, ultimately influencing their behavior. Your brand is telling the consumer what they should think about your product or service, and that’s what they are going to base their purchasing habits on.