16 Benefits of Branding & Co-Branding

The Power of Branding: 10 Benefits for Your Business in 2024 and Beyond

What do companies like Apple, Nike, Coca-Cola and Amazon have in common? They all have incredibly strong, instantly recognizable brands that have propelled them to the top of their industries.

But branding isn‘t just for corporate giants. In today‘s competitive, crowded marketplace, a powerful brand identity is essential for businesses of all sizes to cut through the noise and grow. Consider this:

  • Consistent presentation of a brand has seen to increase revenue by 33% (Lucidpress, 2019)
  • 59% of consumers prefer to buy new products from brands familiar to them (Nielsen, 2022)
  • 73% of consumers say they love a brand because of helpful customer service (PWC, 2023)
  • 77% of B2B marketers say branding is critical to growth (LinkedIn, 2022)

Clearly, the benefits of branding are vast and varied. But what exactly is branding, and how can you unlock its potential for your own organization? Let‘s dive in.

What is Branding?

At its core, branding is the process of shaping perception. It‘s how you define your company and everything it represents – your values, personality, vision, and unique value proposition.

More than just a logo or tagline, your brand identity encompasses all verbal, visual and experiential elements that influence how consumers view and interact with your business. This includes your:

  • Brand name
  • Logo and visual identity (colors, fonts, imagery style)
  • Brand voice and messaging
  • Product design and packaging
  • Web design and content
  • Advertising and marketing
  • Sales and customer service
  • Company culture

Ultimately, your brand is the DNA of your business and the heart of your relationship with customers. It‘s what makes you instantly recognizable, memorable and meaningfully different from your competitors.

Now that we‘ve defined branding, let‘s explore the top 10 benefits a strong brand identity can bring to your business in 2024 and beyond.

1. Stand Out From the Competition

In today‘s saturated market, finding a way to differentiate your business is more important than ever. A unique, memorable brand allows you to stand apart from a sea of lookalike competitors.

Take the mattress industry. With the rise of direct-to-consumer brands like Casper, Purple, and Nectar, the once sleepy mattress business has gotten extremely competitive. To rise above the noise, each brand has cultivated a distinct identity:

  • Casper: Playful, quirky, and innovative with celebrity partnerships
  • Purple: Scientific, premium and transparent with proprietary technology
  • Nectar: Affordable luxury with an industry-leading 365 night trial

While they sell very similar products, each brand has found a unique angle that sets them apart. Follow their lead by pinpointing your own unique differentiators and infusing them into every aspect of your brand.

2. Boost Brand Awareness & Recall

The more consistently you present your brand across touchpoints, the more recognizable it will become. Brand recognition is the foundation for brand recall – the ability for consumers to think of your brand when a need arises.

Apple has incredible brand recognition and recall. Through its iconic logo, sleek product design, and "Think Different" messaging, the Apple brand is etched into our collective consciousness. When you think of smartphones, laptops or tablets, Apple is likely one of the first brands that comes to mind.

To boost brand awareness and recall:

  • Design a unique, evocative logo and use it consistently
  • Develop a brand style guide to ensure a cohesive look and feel
  • Create a distinctive brand voice and use it across channels
  • Increase brand visibility with multi-channel marketing
  • Partner with influencers and other brands for added exposure

3. Convey Quality & Build Trust

Your branding choices say a lot about the quality of your products or services. Professional, polished branding conveys expertise and attention to detail that consumers equate with quality.

On the flip side, inconsistent or amateur branding raises questions about a company‘s legitimacy and ability to deliver. After all, if a business can‘t be bothered to properly brand themselves, what does that say about the quality of their offering?

Luxury brands have mastered the art of high-quality branding. From the ornate packaging of Chanel perfume to the minimalist chic of a Prada boutique, every detail reinforces a premium brand promise. While you may not be selling $5000 handbags, a focus on branding quality can elevate perceptions of your own business.

Build trust and convey quality by:

  • Investing in professional logo design and visual assets
  • Ensuring your website is modern, fast and user-friendly
  • Using high-quality product images and compelling copy
  • Providing excellent, on-brand customer service
  • Showcasing customer testimonials, reviews and trust signals

4. Drive Purchase Decisions & Premium Pricing

In a world of endless choice, your brand identity is often the deciding factor for purchase decisions. Given equal price and features, 91% of consumers say they are more likely to buy from a brand they recognize and trust (SurveyMonkey, 2022).

What‘s more, a strong brand identity supports premium pricing. Consumers perceive well-branded products as higher quality and are willing to pay more for them. That‘s why a Ralph Lauren polo shirt can sell for triple the price of a comparable generic shirt.

To sway purchases in your favor:

  • Prominently display your branding at all key decision points
  • Create cohesive brand experiences that build recognition
  • Invest in package design that reinforces your positioning
  • Build trust with an authentic, customer-centric brand voice
  • Continuously measure and optimize your brand performance

5. Spark Emotional Connections & Loyalty

The most beloved brands transcend mere recognition to forge deep emotional connections with customers. These bonds are the foundation for brand loyalty and advocacy.

Harley Davidson is the ultimate example of an emotionally resonant brand. For many Harley owners, the brand isn‘t just a motorcycle – it‘s a lifestyle. The Harley brand represents freedom, rebellion and American spirit. This identity is reinforced at every touchpoint, from the roar of the engine to the logo tattooed on riders‘ biceps. As a result, Harley enjoys cult-like brand loyalty with a community of passionate advocates.

To spark meaningful connections:

  • Define and embody authentic brand values
  • Treat customers as more than transactions
  • Tell emotive brand stories that resonate
  • Engage customers with interactive experiences
  • Foster a sense of community around your brand
  • Reward customer loyalty with exclusive perks

6. Ease the Launch of New Products & Services

Launching a new product or entering a new market is always a risk. But that risk is greatly reduced when you have an established brand behind you.

Consider the runaway success of Apple AirPods. In a market already crowded with wireless headphones, AirPods rapidly rose to capture 60% of the market (Counterpoint Research, 2020). While the product itself is excellent, the Apple brand name gave consumers confidence to buy and provided a massive platform for promotion. As a result, the launch exceeded all expectations and further strengthened the Apple brand.

Make your next launch a success by:

  • Teasing the launch to your existing audience
  • Adhering to established brand style for the launch
  • Partnering with loyal customers and influencers to spread the word
  • Leveraging your brand story to create desire and anticipation
  • Providing unmatched customer experience to drive adoption

7. Gain an Edge in Talent Acquisition & Retention

77% of job seekers consider a company‘s brand before applying (CareerArc, 2021). In a competitive market, a strong employer brand is essential to attracting and retaining top talent.

Employees, like customers, want to be part of something meaningful. An authentic, well-communicated brand purpose unites employees around a common goal and keeps them motivated. Workplace branding also contributes to company culture and makes staff proud to be brand ambassadors.

The Starbucks brand has long been admired by employees and job seekers alike. The company‘s warm, inclusive brand values are reflected in everything from the inviting store design to employee benefits like tuition coverage and volunteer time off. As a result, Starbucks consistently ranks as one of the best places to work.

Boost your employer brand by:

  • Defining and living an authentic company purpose
  • Showcasing your brand values and culture online
  • Offering on-brand employee perks and benefits
  • Empowering employees to be brand advocates
  • Featuring employee stories in your branding
  • Ensuring brand consistency across employee touchpoints

8. Provide a Framework for Marketing Consistency

Cohesive marketing is key to building brand recognition. But achieving that cohesion across channels and campaigns isn‘t always easy, especially as your marketing scales. That‘s where brand guidelines come in.

Brand guidelines are a rulebook for how your brand should be presented across touchpoints. This includes guidance on your logo usage, color palette, typography, imagery style, messaging and tone of voice. By aligning all marketing under these guidelines, your brand presentation remains strong and consistent no matter how large you grow.

Spotify has seen exponential growth since its founding in 2006, expanding to 178 countries and 422 million users (Spotify, 2022). A key factor in its growth has been a cohesive marketing strategy guided by comprehensive brand standards. From the app interface to social media to Times Square billboards, the Spotify brand is always instantly recognizable.

Maintain cohesion as you scale by:

  • Developing thorough brand guidelines and ensuring accessibility
  • Appointing brand stewards to maintain standards
  • Using templates to make brand-compliant content creation easy
  • Conducting regular brand audits to spot and fix inconsistencies
  • Updating guidelines as the brand evolves over time

9. Elevate the Customer Experience

Customer experience has overtaken price and product as the key brand differentiator (Walker, 2020). And the quality of that experience is largely influenced by branding.

Every interaction a customer has with your business shapes their perception of your brand. A thoughtful, cohesive brand experience across those interactions is key to driving customer satisfaction and loyalty.

The Ritz-Carlton hotel brand is renowned for luxury customer service. From the opulent decor to the white-glove service to the iconic lion and crown logo, every detail of the Ritz experience exemplifies the brand promise of refined luxury. By fulfilling that brand promise at every turn, the Ritz creates a memorably elevated customer experience.

Craft a stand-out brand experience by:

  • Mapping the customer journey to identify key touchpoints
  • Identifying opportunities to inject your brand personality
  • Training staff to embody and deliver on your brand values
  • Using your brand voice to make all communications delightful
  • Measuring and optimizing the branded customer experience

10. Increase the Value of Your Business

Ultimately, a strong brand is a financial asset that increases the overall value of your business. A well-established brand can account for as much as 30% of a company‘s market capitalization (Tenet Partners, 2022).

That‘s because a powerful brand drives many factors that boost valuation, including:

  • Consumer preference and loyalty
  • Price premiums and profit margins
  • Market differentiation and defensibility
  • Marketing efficiency and effectiveness
  • Talent attraction and employee retention
  • Expansion into new markets and product lines
  • Negotiating power with suppliers and partners

In short, investing in your brand is investing in the long-term financial health of your business. The most valuable brands in the world, from Apple to Louis Vuitton, all understand this and make brand building a top priority.

The Benefits of Co-Branding

In addition to building your core brand, partnering with other brands through co-branding can bring added benefits, including:

  1. Increased exposure to new audiences
  2. Added trust and credibility by association
  3. Excitement and buzz from an unexpected partnership
  4. Content for engaging cross-promotion opportunities
  5. Cost efficiencies from sharing branding resources

A classic example of successful co-branding is the partnership between Nike and Apple to create Nike+. By combining Nike‘s athletic credibility with Apple‘s tech expertise, they created an irresistible offer for both brands‘ audiences. The co-branded venture brought fresh excitement and opened up new markets for both companies.

To get co-branding right:

  • Choose a partner with shared values but a different audience
  • Ensure the partnership is a win-win that feels authentic
  • Set clear guidelines for co-branded asset creation and use
  • Cross-promote to each partner‘s owned channels
  • Have a plan to measure co-branding success and ROI

Unlock the Full Potential of Your Brand

As these benefits show, a strong brand is an incredibly valuable business asset. Far from just a logo or catchy jingle, your brand has the power to drive consumer preference, command premium pricing, spark emotional bonds, and boost your bottom line.

But realizing these benefits requires consistent, strategic investment. It‘s not enough to simply have a brand – you must actively build and manage it over time. This means:

  1. Defining a unique, authentic and aspirational brand identity
  2. Ensuring that identity is consistently reflected across all touchpoints
  3. Evolving your brand to stay relevant to consumers
  4. Measuring brand performance and adjusting accordingly

While the process takes effort, the payoff of a well-managed brand is undeniable. So if you haven‘t already, make 2024 the year you unlock the full power of your brand. Your customers, employees, and bottom line will thank you.

Need help building a brand that stands apart and drives results? The HubSpot Blog is here with the latest tips, insights and examples to guide you. Check out our Branding Resource Center to learn more.