Why Does Brand Recognition Help Businesses?

Every day brands try to compete with each other in order to gain more attention from customers and potential clients. While in other industries we tend to not “judge de book by its cover”, in business this is what brands are looking for because the brand represents the face of the entire business. 

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Even if we don’t want to admit it, first impressions always matter, and brands are looking to create the perfect first impression in order to attract more loyal customers. 

Brand recognition represents a concept that is beyond a good-looking logo and a cool color scheme. Instead, is more about creating a whole vibe, an experience for customers, and even a feeling to make the customer feel special. It is used in advertising and marketing to explain how customers are able to recognize various brands using visual items such as logos, colors,and packaging or auditory elements such as slogans or jingles. 

In most cases, a business that has strong brand recognition in the market also has a higher number of sales along with a higher profit margin, even if the competitor has the same quality, but does not have the same brand recognition strategy. 

1. Builds Trust and Credibility 

Customers are more likely to trust those brands that they recognize. When various customers see a familiar logo or name, they tend to associate it with previous experiences, recommendations, or online reviews. That's branding 101.

Here trust represents an important element when considering purchasing an item because most customers will choose to buy from a brand that is well-known - even if its competitors will probably offer the same quality or even better quality products.

For example, what would you choose between, Nike and a less-known brand? The purchasing decision is not made because it is Nike that has a better quality. While it can have a better quality compared to the other brands, Nike managed to build a better reputation and customers choose to trust and be loyal to Nike. 

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2. Motivates Customers Loyalty

A stronger brand presence in the market is made when a brand manages to create emotional connections with customers. So, when different customers can recognize a brand they will automatically feel a sense of belonging, which eventually increases the number of purchases from the same brand and creates a long-term relationship with the client. 

For example, Apple with its brand recognition managed to transform every customer into a loyal one that is thrilled to hear about the new product launches. 

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3. Provides A Competitive Advantage

In overcrowded markets, where businesses are trying to demonstrate their differentiation, the brand recognition strategy can be sometimes a tough challenge. This is why you need a competitive advantage!

This way, customers who are already seeing multiple brands, will eventually choose to purchase from the brand that they recognize instead of an unknown brand. Especially in heavy industry competition such as electronics, fashion or food, customers will always choose the brand that has a stronger brand recognition strategy. 

For example, in the food and beverage industry, Pepsi and Coca-Cola managed to be the leader because their brand recognition strategy ensured a strong brand presence. 

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4. Increases Business Value 

Most of the time a strong brand recognition strategy provides a higher worth of a business. On the other hand, investors along with stakeholders will be more likely to support those businesses because they demonstrate more stability and market influence. 

Most popular companies such as Amazon, Google, and McDonald’s have an increased valuation due to the power of those brands. 

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5. Elevates The Marketing Effectiveness

It is true that the marketing strategy is more effective when customers can recognize the brand. This happens because popular brands can focus their strategy on promoting new products or services instead of having to explain almost every time who they are. 

Also, word-of-mouth marketing can be an effective elevator of the strategy, because will significantly reduce advertising costs. Even more so, social media can be an effective marketing strategy for brand recognition because many brands choose to attract customers through content marketing and seasonal promotions. 

Brand recognition represents a powerful marketing advantage that helps businesses build trust among customers in order to transform them into loyal consumers. While it can significantly improve the marketing efforts and the overall value of the company, the popular brands will have long-term success because they can maintain the top-of-mind position for consumers. 

Are you ready to start your business? Our dream team focuses on building a successful branding strategy that can help your business growth. Whether you’re looking to launch your business or rebrand your existing company, we provide top-class solutions that will set you apart from your competition.

Contact us today to get a personalized quote for your business needs, and let’s start building the path to your next level of success together!