Many small business owners ask this same question. Whether they are a plumber, lawyer or landscape architect, they want to know why they need a brand. To them, it seems like a waste of time and money. They are too busy finding customers to focus on building a brand!
In this increasingly crowded business world, it is very difficult to stand out from other companies. Access to the Internet coupled with next day shipping has removed most distribution barriers and many products have become commodities. To the consumer, many companies provide similar products or services, so they just search for the lowest price.
A company's brand ensures their value can stand out out from their competitors. It also helps that company "get found" when a customer is shopping. It makes them memorable to the consumer!
In any economy, people buy when they are in pain and have the money to solve that it. Any marketing activity a company does ensures that the business can get found when the customer is ready to buy. If the company can't be found by the customer, they have no chance of being chosen. A consumer has to consider that company (i.e. put them in the “maybe” pile) to get a sale. Most successful companies get chosen over 33% of the time they are considered by a customer. The key to growing a business is to get considered by more shopping customers.
Some small-businesses confuse a brand with a logo. A brand separates the company from their competitor. It is an emotional experience. What will the customer see and feel when interacting with a company? The brand is what the company is known for, the pain it solves and its values. Alternately, a logo is just a graphical representation of the companies name. While the logo can be recognizable, it's not the brand.
Consumers will pay more for company's brands that add value. For example, what comes to mind when a consumer thinks of Apple? The company is known for innovative, hip, easy to use and expensive technology. This is evident in all Apple's products and stores. For consumers, their brand clearly adds more value since Apple is one of the most valuable company in the world. Similarly, Starbucks' brand is not jsut about selling coffee. They are seen as a warm and friendly atmosphere where customers can stay awhile.
Brands help companies connect with the consumer's pain. Remember, a valuable service is what a customer seeks, not what the company wants to provide.
Developing a brand is an investment process. Consumers stay loyal to brands they buy and remember. It makes it harder for them to switch to a competitor. In this social media connected word, eventually satisfied customers will promote the company's brand making it even more powerful.
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