The Importance of Creating a Brand Identity to Grow Your Business

"Your brand is the single most important investment you can make in your business."

- Steve Forbes

As Steve Forbes has rightly conveyed, a brand identity is one of the most crucial stepping stones for your business. It translates into how you communicate about your business with your customers. Owing to increased digital adoption, creating a brand identity for your business has now become more important than ever before. Your customers have a wide range of businesses to explore. They can research for the same. However, for businesses, it has become increasingly difficult to stay relevant in the minds of their customers. Hence, your business would need to stand out to make a mark amongst its competitors.

Although most businesses these days are paying attention to marketing, that alone is not enough to create a viable brand. On the other hand, entrepreneurs and leaders can also get blinded by their perspective on their businesses, they do not know how their businesses are being perceived by their consumers. Keeping all of these insights in mind, as a future-ready entrepreneur or a business owner, you must take the first step to create a brand identity for your business. The sooner you do that, the better. The rewards of building a brand identity are many. The reasons listed below will inspire you to accelerate your endeavours in that direction:3

Brand Identity Creates a Great Recall

One of the main reasons to invest in brand identity is to create more awareness. Be it your current customers or the potential ones, all of them need to recognize you to stay loyal to you. Therefore, investing in creating a premium logo, packaging and effectively managing social media is necessary to slowly create your brand story and engage your customers. By crafting your brand identity, you would also indirectly nudge your customers to talk more about you. These conversations would create a good recall in their minds and attract potential customers.

Brand Identity Forges Trust and Loyalty

To run a business, you need trust from your customers. But, gaining it is not easy. Without strong brand identity, your customers will not be able to find you in a crowded industry mired with your competitors. A thoughtfully created brand identity puts the spotlight on your business and allows your customers to connect with it. It also wins over your customers as your business appears established and credible. Moreover, your brand identity attracts your potential customers as well. Collectively, investing in brand identity reaps many fruits that benefit your business manifold.

Brand Identity Impacts Revenues

Think about Apple or Coca-Cola, these businesses have forged a strong brand identity for themselves. That's why it is not surprising to see their revenues soar. Apple can set a high price for its products because it has positioned itself as a strong brand. On the other hand, Coca-Cola attracts consumers due to its youthful appeal. Revenues of both of these businesses have always kept growing. This validates how a poor brand identity could affect your business in more ways than one can imagine.

Both of these businesses inspire us to invest in building a strong brand identity to attract premium customers and stay relevant over the decades.

The returns of building a strong brand identity are many. However, you need to be consistent with it. Just as Rome was not built in a day, your business will need strategy and creativity to transform into a brand.