6 Reasons Why Companies Invest in Branding (make BRAND of brand)

Branding is the most misjudged term…


But it’s still not the saddest part.


The saddest is when even the reputed branding companies have a veiling confusion regarding it.


Some think logo design is branding…

Others think a trademark name is branding…


Different branding agencies perceive branding differently.


But a very few top branding companies understand branding is way more than


  • brand colors
  • packagings
  • brand voice
  • design
  • tagline


Branding is


  • how everyone perceives you and your business
  • what goes into their minds when they hear of you
  • what memories have they attached to you
  • where do they stand with you— emotionally


So if you’re selling products quickly and in large quantities like hotcakes— there’s no proper reason why you wouldn’t invest in branding.


Let’s find out the benefits of investment in branding, NOW!


Roll your eyeballs now.


Investment benefit #1: Branding has a psychological effect on customers


Customers love brands!




You must have seen Apple or Nintendo fans taking pride in their favorite brands.




It’s only because they feel enthusiastic holding their devices.


You can sense a hint of happiness on their faces.


These brands can truly release dopamine hormones in their bodies— the hormone that keeps them happy.


But that’s not the only impact branding has on people.


Some psychological studies say branding can improve your customer’s performance. (1)


branding and their psychological effects


  • enhances an individual’s self-concept
  • tames performance anxiety where individuals feel anxious
  • helps concentrate in work


Think of it this way— you can’t wait to wear the Nike Shoes you just ordered.


The hunger for instant gratification wouldn’t die, and you need the order the very next hour.


And when the shoe arrives— you’re ironically high over heels.


That’s what branding does!


Investment benefit #2: Charge your worth with a clear brand


We have seen people struggle for years despite being experts in their niches.


What could be the reason?


Well, they never made themselves a brand.


They would charge way less than what they deserved for their experiences and insights.


Could they have avoided it?


Of course, if they worked on a solid brand establishment.


Many businesses bet their investments on building positive brand equity.


Positive brand equity:


  • increases the profit margin per consumer
  • skyrockets the sales volumes
  • gravitates consumers towards the brands
  • helps charge higher than the competitors


See! Whatever branding helps with is not rocket science.


It is a way to communicate your work quality constantly— if you make it good, they offer and pay you more!


Investment benefit #3: Open your clogged sales funnel


Just look around!


What is it you’re selling that others are not?


Sorry to say, but there’s hardly any product or service.


No matter what the niche is— you’re going to find healthy competition choking up your breath.


It is why most customers never move past the “prospect” stage in the sales cycle.


And over time, all you have is a clogged sales funnel.


Branding helps your customers tell:


  • we’re the ones you’re looking for
  • we’ll solve all your problems
  • you’re in safe and capable hands


You have to reach out to your customers’ ears and tell them: it’s us— the perfect fit for you, not them.


Better brand message = qualified leads = higher conversion rate.


Investment benefit #4: Get hold of the new customers


Branding is nothing but creating a safe space in your customer’s head.


Have you done that yet for your business?


Take it this way: would you recommend or refer to a jeans brand if you didn’t remember their names?


Even if you want to, you can’t do much about it.


And it’s not your fault.


The jeans company couldn’t drop memorable imprints on your head.


Why customers need to recognize and remember your brand


  • You want them to speak goody-good talks about you. Why is it crucial? 64% of marketers believe “word-of-mouth” marketing is the most effective form of marketing. (2)
  • You wish they promote your brand at a cheaper and effective cost than paid ads.
  • Brand awareness lasts longer.
  • Word-of-mouth marketing can get you five times more sales than paid marketing.


So if you’re looking to acquire new customers, instead of putting efforts into acquiring them, try leaving memorable imprints on your existing customers.


You’re not only satisfying the subsisting customers but also making way for the new ones.


Look! You’re anyway going to please your current customers.


Do it in a way they go all ballistic about your services.


Investment benefit #5: Keep floating when the tides are high


Non-branded businesses blow away in the first spurt when the economic storm arrives.


You don’t have to look far!


The global pandemic has devastated small businesses on a grand scale.


Businesses not only have their feet axed, but they’ve disappeared completely.


But who all survived?


Only the strong brands who invested in creating visibility.


The best time to spend in branding


  • When your business is on a roll
  • When there’s a good inflow of customers’ attraction
  • Avoid spending when the business is looking to collapse


Surviving an economic turmoil is not easy when you start late.


But if you have got a head start before the economic storm shows up— chances are high you’ll survive the hardship.


Investment benefit #6: You attract the ideal customers


A customer buys with emotions and justifies with logic… but they only show interest in your business when you and them share the same values.


You, as a brand, need to define what you stand for.


If you send your message loud and clear, you’re likely to attract the right set of audience for you.


For example,


If you sell luxurious cars… your branding needs to be in line.


You have to propose values that match your client’s needs.


In this case, you’d like to have high-quality commercials, sell means-end benefits with your product, and resonate with their values.


Everything you put up in your branding effort should match your ideal customer’s values.


How you attract better clients


  1. Understand your target audience
  2. Build a specific brand image according to them
  3. Evaluate the current reputation of your brand
  4. Avoid practices and services that match with customers’ values
  5. Stay consistent in the value proposition


Things we learned…


Number 1… branding offers the “feel good” factors to your customers.


Number 2… branding lets you charge ferociously.


Number 3… branding pushes customers deeper into the sales funnel.


Number 4… branding gets you the new customers from the existing customers.


Number 5… branding keeps your neck floating in the economic tsunami.


Number 6… branding has you linked with the ideal customers.


The final call…


Branding is an expensive investment… There’s hardly any counterargument to it.


But you can save money and still increase profit.


Here’s how:


  1. Outsource brand marketing
  2. Spend only on the tested and effective methods
  3. Don’t hesitate in trying cheap marketing tricks
  4. Go for DIY marketing if it’s possible
  5. Let influencers take awareness to distance
  6. Reward your customers for branding you
  7. Say no to expensive marketing






Author Bio: Brijesh Jakharia


Brijesh Jakharia co-founded SPINX Digital in 2005 and takes great pride in crafting web and mobile marketing solutions for mid-market businesses to enterprises. Marketing is his passion, and the thrill to build a brand from the ground up has helped him craft successful brand stories for world-class clients. While not at work, he loves to spend his time on research and reading digital content stories.

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