While this is definitely an overwhelming statistic, the comforting news is the reasons for such failures are often easily remedied.
Before we move forward, answer us this – why do you think most of the startups fail? It’s not because of poor idea selection, insufficient funds, or inaccurate market research. Instead, more than half of the businesses do not make it any further than 5 years for the reason that they fail at marketing the product correctly and making it a fit for the market. The solution to such risks is quite a must-do in every business owner’s book – it’s branding.
Branding is a nuanced art of actively shaping your business into a brand that’s recognisable, unique, and shares a connection with the audience. However, most businesses approach branding no further than its surface. They make the mistake of limiting it to just the visual identity of a business – logo, colours, design, name, font, etc.
In this blog, we will walk you through the reasons why branding is a critical component for kick-starting your business. Let’s go!
Importance of Branding for Startups
Establishes Your Identity
Your branding is what people think about you when someone mentions your brand name. So yes, good visual branding is necessary, especially since customers get influenced by visually saturated platforms such as social media.
However, your brand logo, name, and colours should tell a lot more than what it looks like on the surface. They should reflect your identity and shape your brand voice, tone and aesthetic.
You can take help from a professional designer to design the visual brand elements in an impressionable, memorable, and powerful manner.
Defines How You’re Different From Others
Branding is the reason why a consumer walks up to a store or browses on the eMarketplace and purchases your product and not your competitor’s even when both the products provide the same features.
When you launch your product, you aren’t the only seller. In fact, as a new entry, you need to fight with the existing and well-established sellers who are already selling the same or better products as yours. The customers will begin to choose you if you show them your USP and how you’re unique from the rest.
Remember, customers don’t trust the products, they trust the brand. Therefore, your brand identity should reflect credibility and a positive reputation that attracts customers to it.
Develops a Connection With Customers
Marketing your brand and products or services isn’t just about getting your customers to purchase your products once. It’s about creating repeat value and gaining loyal customers. It happens when they begin trusting your brand.
One of the most effective ways to create brand loyalty is by developing an emotional connection with your customers. Humanise your business, narrate your story, and share your values with them. A good branding strategy evokes a positive emotion in the customers, and when that happens, customers begin to develop a connection with the brand.
Social media is an effective tool to do so since it allows businesses to show their real, raw, and authentic selves. Leverage popular social media channels to engage your audience and build lasting relationships with them.
Your human resource is the key to the success of your startup. Be it your core staff or the new talent, their efficiency and dedication towards their roles can determine whether your business can achieve its goals or not.
However, employees need more than work – they need a reason to work towards it. Your branding defines the culture of the company – what you stand for and what’s your mission. This instils a sense of pride in them to work right for a business that results in something meaningful.
Great branding also acts as an attraction for hiring new talent. It convinces them to work with you.
Attracts New Customers
Your strong branding drops an impression amongst your customers. Once a positive perception of your business has been established in the market, word-of-mouth referrals begin showing up.
Your consumers recommend your brand to their friends and family, colleagues, and peers. Since they already have a positive association with your brand in their minds, they are more likely to make a purchase with you than your competitors.
Gone are the days when branding was an option – it’s a necessity now. Therefore, do not underestimate its power and put off waiting for the right time and resources to begin implementing a branding strategy. It’s the perfect recipe to bring in growth and success for your new business.
If you’re clueless about where to start, Netplanet Digital can help you. We can reinvent your business by assisting you in the creation of a strong brand identity to maximise your chances of development. Book a free 30-minute consultation call with our experts today!