Why is Business Branding So Important?

For a new company, the message the brand conveys to the consumers – and, to a certain extent, its competitors – can make a big difference in terms of market position, customer loyalty, and communication.

First impressions

The brand of a business is the first impression most people will get when interacting with a company. Whether it’s a customer, a partner, a potential supplier, or the public at large, the way in which a business presents itself speaks volumes about its persona and market position.

If a company wants to gain trust, respect, and a position worthy of its aspirations, well-thought-out branding is key. A lack of clear branding indicates an absence of direction and purpose, which can be incredibly damaging when seeking clients or customers in a competitive marketplace.

Creating a connection

Buying a product or service should go beyond just a simple transaction. When you develop a relationship with your customers, they’ll feel like they’re getting something more than just a product—they’re getting an experience, a service, something that means more than the simple item in their hand.

Every time a person chooses one brand over another when picking a product that is essentially the same, they are reflecting the relationship they have with that brand. Why do people choose a pricier designer label product over a budget item than delivers the same essential benefits? Because the brand gives them the added value of prestige, assurance of quality, or a feeling of belonging to an exclusive group that would choose that brand over a generic product. These are all feelings that are impossible to evoke in your customers without an identifiable brand.

Foster loyalty

Once a company has a solid brand tailored for its intended customers, it has the opportunity to grow the loyalty that customers feel towards the organisation and its products or services. If people can identify why they prefer one company over another for the provision of comparable services, they are more likely to seek them out and remain loyal rather than choose the first product they come across that meets their needs.

Brand loyalty is the holy grail of marketing, and is something for which the majority of organizations—particularly those offering consumer goods—strive to achieve. Even companies that don’t sell a consumer product can benefit from a strong brand and the loyalty it can engender. Anything that positively differentiates one company from another is a huge benefit in a competitive market.


Business branding is a vital aspect of developing a corporate persona with which clients, customers, and the public can identify. Following identification comes preference—and after preference, loyalty. Once a company has gained the loyalty of its customers, it will be much better positioned to weather the slings and arrows of market forces.

This is a guest post from SAS London, a UK-based digital communications agency.

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