Named Founder Friendly Investors 2021 & 2022 by Inc.
Trying new things is an essential ingredient for living an enjoyable life. It helps keep us engaged and learning. Whether it’s new restaurants, new movies, or new games, we tend to see ourselves as flexible and experimental – open to nearly anything.
But the truth is that most people choose something that they know or that looks familiar. For example, when visiting a new restaurant, we might select a familiar dish, or we might assume one political candidate is friendlier than another because we’ve seen their face everywhere.
Business is no exception to this familiarity bias, which is why branding matters. The average consumer may be unable to tell you who makes the best LNG forklift or which accounting software is the most user-friendly for a small or medium-sized business. But people working in those sectors certainly can, highlighting the functional benefits of a brand.
Instead of constantly trying new companies, B2B and B2C customers often remain loyal to a business or supplier they are familiar with. Or, they choose the most recognizable vendor. Branding is more than marketing or promotional material, and its functional value can help you grow faster.
The functional benefits of a brand will help you grow your business by ensuring you are the first company that comes to mind to solve a customer’s problem.
Some of the most effective marketing strategies revolve around a functional benefit. It’s an aspect of your product or service that breaks things down into specific benefits your customer can understand and appreciate.
Functional benefits examples include:
These functional benefits and more come to mind when customers and potential customers think about these brands.
A brand is the face of your business, and it’s one of its most valuable assets. But what exactly is a brand?
In short, it’s a promise made to your customers. It’s the feeling they get when interacting with your business through a logo, social media posts, or your employees.
A strong brand helps you stand out and can give you an edge over the competition when attracting new customers. A functional brand will also help keep existing customers returning.
Let’s take a closer look at four functional benefits of a brand:
In crowded markets, many similar brands compete for attention and shelf space. A strong brand can help set your business apart from the competition by creating an image in consumers’ minds of who you are and what you do.
Consumers feel more confident buying from brands they know and trust, so strong brands often enjoy higher sales and faster growth than competitors lacking brand identity. Not only are satisfied customers more likely to purchase your product or service again in the future, but they also become advocates for your business.
The functional benefits of a brand are the tangible things that the brand does for you. People like to choose something they know, and a strong brand can make it easier to build trust with potential clients.
Branding in business makes establishing trust with customers and clients easier. It’s not just about giving them something they can remember but also associating your company with trustworthiness and a positive message when they see your logo or hear your name. That’s one reason it’s crucial to have a consistent visual identity.
As specific markets get more crowded, you need an edge to stand out from the crowd. Brand recognition is one way to do this for current and potential clients. Potential clients who aren’t familiar with your company may still be attracted by what they perceive as a strong brand identity.
A strong brand can tie your marketing material together. Ensure everything, from your website design to social media posts, looks like it belongs together. People will feel like they understand who you are better when your business looks similar across every channel.
Further, if people already know who you are and what you stand for, it becomes much easier to communicate with them in new ways. There’s no need to rethink your message every time. By presenting a cohesive picture of your business and its values, you avoid having to reinvent your marketing every time you launch a new product or service.
People want to work for a company they believe in. A strong brand helps employees feel pride in their work and can improve employee retention.
Like customers, employees and candidates should know who you are and what you stand for. You’re not some no-name company. A strong brand will also help people understand what you do and why they should care about it.
Employees who love working for your company and connect with your brand will be proud of their work there. They’ll become ambassadors and be happy to tell their friends about it, willingly showing off company merch like t-shirts and hats!
The value proposition is the foundation of your brand, a statement that explains what you do and why people should care. It’s an opportunity to connect with customers and get them excited about your offer, and it should be clear, concise, and well-defined.
A strong value proposition is critical for any business, but it’s essential for startups because it helps attract investors and increase sales. Here are some elements that make up a good value proposition:
Defining a brand is not a one-and-done activity. It’s more like a journey that requires constant evaluation and improvement. You must first understand your business, customers, and competition to develop your brand. After that, define what makes your company unique and what you want your brand to represent.
Always keep the importance of brand identity and marketing in mind when you’re making business decisions, especially those that relate to how customers perceive your business. A strong brand identity helps your company stand out from the crowd, helping you gain and retain more customers and grow your business.