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Why is Branding Important?

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What is Brand Identity?

The brand identity of a business is much more than just the logo, colour scheme and typography. It includes more in-depth aspects such as the mission statement, brand values and aims as well as the main idea of your business. This information will be passed on to the consumers through the business’ identity. Establishing a strong brand is one of the best ways of encouraging customers to interact with your business.

Stand out from Competitors

According to Beauhurst, almost 60% of small businesses fail in the first 3 years. This can be due to many factors, perhaps an oversaturated market or not getting enough recognition. This is where brand identity steps in. Having a strong brand identity will allow the business to stand out from the crowd against competitors. This will put the business at an advantage. Visual elements can have a positive impact in the audiences mind, if the brand identity is done successfully, allowing the customer to remember the business. If the brand identity of a business looks cheap and unprofessional, it will deter customers and encourage them to seek out competitors.

Builds Trust and Customer Loyalty

Having a strong brand identity will encourage customer loyalty and build trust. A customer is more likely to remember a product or service that has a strong brand identity over a weak one. Consumers are more likely to choose a brand they recognise, over one that is unfamiliar. Once a customer starts to recognise a business, they start to feel more comfortable using the brand, leading to a loyal customer. A loyal customer is likely to recommend the business to their friends and family, leading to more sales and a growing, successful business.

Customers are more likely to shop at a business they know have similar values to themselves. This is why it is important for the brand identity to reflect the mission statement, brand values and brand aims. This is also a great way to learn who the target audience is. Announcing the brand values for everyone to hear will naturally attract the customers who agree with the set of values, eventually creating a solid customer base.

Charge like a Professional

New businesses often have to keep their prices low to encourage customers. Having a strong brand identity will make the business look more professional, even if it is a start up business. If you have a high quality brand identity, customers will naturally assume that your product or service is also high quality, and be more willing to use you.Obviously, the more professional the business, the more you can charge.

Take these two logos as an example. Both logos are for non alcoholic cocktail companies. Which one would you be willing to buy from?

Attract Ideal Customers

When market research for your brand identity is done efficiently, your brand will naturally attract its ideal customers. When forming the brand identity, it should include the core values, aims and objectives of the business. Examples of brand values include whether the products are ethically sourced, how their employees are treated and how the business helps the environment or local areas. If a business uses slave labour, for example, then a lot of people could refuse to use that brand as it may go against their personal values and beliefs. This is why it is important to explain what the company values are.

Creates Consistency

Having a brand identity allows your brand to keep consistency amongst all marketing materials and social medias. Customers will start to recognise your brand from things like colour, typography and patterns when used consistently.

Brand consistency can also help employees feel more comfortable with the brand. Having branded uniforms or stationery can help make them feel included in the brand and a valued part of the team.


These points just highlight a few of the reasons on why having a strong brand identity is important for your business to succeed. It is important to remember that it is the brand identity that leaves the imprint on customers minds. Without a strong brand identity, your brand will not be remembered. Doing your research before creating your brand identity will give you a more in depth understanding on how your business can gain customers and survive against its competitors. It is ALWAYS worth investing in your brand.