[Read Time: 3 mins]
Traditionally, I have found that the concept of brand recognition is either often overlooked by business owners, or it’s lumped together and categorized with brand awareness. I can see how this can happen, however brand recognition by itself is a powerful motivator for individuals within your target demographic. It’s an asset that can help keep you in business and build momentum for your brand across your product or service portfolio.
Before we jump into how brand recognition will keep you in business, it’s important to clarify how brand recognition and brand awareness differ. Brand awareness is the extent to which a customer is familiar with elements like your brand’s reputation, quality, features, and values. Brand recognition, on the other hand, has to do with a customer’s ability to identify your brand within the market.
A good measure of brand recognition is a customer’s ability to successfully recognize your business through things identifiers like your logo, tagline/slogans, typography, and color scheme.
Quick exercise. Take a moment to think of a brand you know particularly well. What comes to mind? Or better yet, when hearing the following what do you automatically think of? “Macbook”, “the color green” and “just do it”. I assume the Apple icon, Starbucks & Nike were first to come to mind. These are some of the biggest and most recognizable brands in the market today & a big reason for this is because of brand recognition.
These brands have also continually invested in their brands. Read more about the importance of continual brand invest here. Click here
You may not be a huge brand like those mentioned above, but what does brand recognition mean to your business?
(1) It can mean the difference between making or losing a sale
Studies have shown that consumers are more inclined to purchase products from brands they’re familiar with than those they’re unfamiliar with. While the percentages may vary depending on the industry, nearly 60% of consumers say they would prefer to buy from a brand they recognize. This means that 3 out of every 5 customers that consider a particular product or service that your business offers will be loyal to your brand when purchasing. In fact, the probability of selling to an existing customer is anywhere from 60% to 70%, while the probability of selling to a new prospective customer is between 5% and 20%. That’s a huge difference.
(2) It boosts brand loyalty
Research has shown that 59% of consumers say they would rather buy a new product or service from a brand they’re familiar with, regardless of how familiar they are with the new offering. And 21% of shoppers say they have actually purchased a new product specifically because it was offered by a brand that they liked.
But how does brand recognition keep you in business? It keeps customers coming. Now, it is important to note that much of a customer’s opinion of any given brand is highly influenced by their first purchasing experience. So assuming that you have provided a positive customer experience during purchasing and a great value with your product or service, you can expect brand recognition to encourage consumers to continue coming back for more.
This can be very important to your top line revenue. It’s been shown to be 5x more expensive to attract a new customer than it is to retain an existing one. Brand recognition can keep existing customers coming back & also spread the word of your brand to others.
If you’re an entrepreneur that would like to increase the growth of your business, we can help you establish stronger brand recognition. Click here to learn more.