Why Is Brand Awareness So Important for Business Success?

Luke Fitzpatrick

NikePhoto by Kristian Egelund on Unsplash

Building brand awareness is vital to the survival of any business. The fact of the matter is that, without awareness, there is little chance new audiences will ever come to know your brand. In that case, there can be no growth and no chance of competing with the big names in your industry.

Particularly as more of the world moves online, it is more crucial than it ever has been to ensure your name stands out in the minds of your target consumers. Here are just some of the reasons why.

Build trust

In this day and age, there are few things your customers value more than trust. In fact, more than half (53%) of consumers claim that how much they trust a brand comes second only to price when deciding where to spend their money. However, you simply can’t gain trust if you don’t build positive awareness first.

Tactically spreading awareness of your brand allows your business on more people’s radars, all the while proving to them that you’re worthy of their trust. You can do this by putting brand values front and center of your advertising campaigns, social media strategies, and mission statement, amongst other things.

It’s also important that you show new customers that you can and will deliver on your promises, by always endeavoring to offer excellent service as heightened brand awareness brings in more custom.

Brand recognition

There is a common misconception that brand recognition is the same thing as brand awareness. But, actually, brand recognition is one part of brand awareness – and a particularly important part at that.

With good brand recognition, your target markets should be able to identify many of the major components that make up your brand’s identity, from its name and logo to its color schemes and tone of voice. When you work at building recognition, you make it all the more likely that consumers will know when they’ve scrolled past one of your posts on social media or come across your packaging.

Together, brand recognition and brand awareness can drive massive influxes in sales amongst new audiences by up to 300%. This isn’t just great news for fledgling businesses trying to build their consumer base, but for existing companies looking to expand into new markets.

Increased sales

It’s not just that brand awareness can supercharge sales. The fact of the matter is that it simply is not possible for a business to sell to a group of customers if those customers do not know they exist. Add that to the fact that 75% of people are more likely to shop with brands they know well, and you’ll start to see that awareness is crucial for companies that want to make any money at all.

This might seem somewhat obvious. But, unfortunately, a lot of businesses seem to overlook this fact and, as a result, struggle to get their sales off the ground. Brands would do well to put ‘raising positive awareness’ at the very forefront of lead conversion and sales drives. Fail to do so, and they are unlikely to achieve the desired results.

It’s all about the data

Speaking about brand awareness in the abstract is all well and good. But, without a way to measure that of your business, it’s going to be difficult to make the sort of tangible changes to your marketing strategy that will earn you concrete results. That’s where data analysis comes into the picture.

By implementing tools that will help you measure, for example, SEO performance, your reach on social media, your lead conversions, and other focused metrics, you can get a real handle on how well your brand is known. As much as anything else, this is a risk reduction strategy, helping businesses to set goals that are sure to pay off in the long run.

Data analysis can also help to mitigate risk in other areas of business, including important investments. Companies can, for example, safeguard against risky investments with something called break-even analysis. This offers valuable insight into the point at which a given venture can be expected to break even.

Businesses that are looking to funnel additional funds into a brand awareness strategy would be well advised to put break-even analysis to good use as a way of assuring its success.

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Academic Speaker | Freelance Journalist | I have contributed to a variety of publications such as Forbes, Tech In Asia, and The Next Web. I cover a variety of topics ranging from fintech, big data, AI, blockchain, to lifestyle and breaking news stories.


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