Benefits of branding
Branding allows a company to differentiate itself from the competition and, in the process, to bond with its customers to create loyalty. A position is created in the marketplace that is much more difficult for competition to take away. A satisfied customer may leave, but a loyal one is much less likely to.
For a company, branding allows for:
- price premiums
- reduced competition
- lower customer churn
- greater margins
- lower marketing costs
- higher-than-industry average transactions
- reduced sales volatility
- the ability to attract and keep better customers and employees
- opportunities for brand extensions
- possible co-branding opportunities with like-minded products or services
For a customer, branding:
Clearly, branding is a win-win situation for both companies and customers in the global marketplace. Properly managed, branding can create customers for life, offer long-term profitable growth, and increase shareholder value and stakeholder worth.