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Why is Brand Identity So Important?

Brand identity is all about the way that an organisation is perceived by the people who come into contact with it. In a business context, this will typically involve the company’s name, logo, reputation, marketing and web presence. All of us are aware of leading brands in different industries, and many of us actively prefer certain brands over others.

Fundamentally, brand identity has a huge impact on the way that a business is regarded by its customers. A positive impression will create huge momentum; negative connotations can be extremely damaging and lead to a downturn in the company’s fortunes.

Why is Brand Identity So Important?

1. It Influences First Impressions

First impressions have always been important, but in the internet age they are arguably more critical than ever before.

This is largely because of the way that we use search engines. Most of us make multiple searches every day. Search engines help us overcome problems and challenges of every size. We therefore trust the results that we are presented with.

As soon as we click on a link, however, a vital process occurs. Either we like the look of what the search engine has directed us to, or we assume that we didn’t quite get our search terms right and click back to the SERPs. In other words, first impressions are absolutely vital.

This is the first answer to the question of why is brand identity so important. It’s because the quality of your branding will speak volumes about your business to users who have clicked through to your site for the very first time. A high quality brand has the potential to win new business and increase your influence rapidly. A weak brand will simply let your business down.

2. It helps you to increase your influence

A successful brand identity is so powerful because it helps to increase your influence every time it is broadcast.

We see this every day with the world’s most famous brands. Costa, for example, are frequently referred to as the UK’s favourite coffee house. Their branding helps to increase their influence on a daily basis. You’ll see it if you walk down the high street. You’ll see it in your local bookshop. You’ll see it on the motorway, in the supermarket and at the train station.

Once you’ve got a strong brand with a reputation for quality, the branding does the hard work for you. People see your name and logo and subconsciously store that information away. This works just as well on a local or virtual level as it does with a leading national brand.

3. It gets better with age

One of the challenges of starting a new business is making your mark in an established industry. We generally tend to trust older businesses that we have heard of before.

The beauty of creating a strong brand is that over time it will start to gain significant value. We often talk about the value of ‘goodwill’ in a business context – the inherent value in your business that is generated by repeat custom, reputation, influence and market sector. Getting your branding right at the outset will reap the benefit in the long term, adding value to your marketing efforts and significantly increasing the goodwill associated with your business.