Brand recognition refers to the familiarity of your product among consumers and whether they recognize your brand when they see the product. The company’s logo, colors, name, and tagline are important aspects in creating strong brand awareness for your business.
Higher brand recognition means that your product is popular, and people will pay over the odds of buying your product. You’ll enjoy a greater market share and will experience a significant rise in revenue. Here’s why brand recognition is important for your business.
Increased Market Share and Sales
As mentioned, having brand recognition will undoubtedly increase your market share and boost your sales. If you’re the first company that comes into mind when people are looking for a certain product, you’ll make it hard for other companies to enter the market.
Helps To Increase Consumer Faith
Companies with higher brand recognition tend to be trusted more by customers. For example, you’ll be more inclined to buy medicines from big manufacturers with greater brand recognition, such as Pfizer and GSK, than from an unknown company.
In the current COVID-19 climate, brand recognition is becoming more important, and companies are working hard to incorporate recognition strategies in their marketing plans.
Having a strong brand presence will help your business to become immune from price changes as people will pay above market price to buy your product. The biggest example is Apple. It’s such a popular brand that people line up overnight outside their stores to get their hands on the company’s latest products!
Even though the new iPhone12 Pro costs almost $1000 and the latest basic MacBook Air model starts from $899, they still oversell their recognizable rivals.
Impact On User Experience
Brand recognition can influence user experience and the product as well. A prime example is Coca-Cola. It consistently comes out on top of Pepsi in terms of market shares and sales. However, many blind taste tests have shown that customers prefer the taste of Pepsi over Coke. This shows that powerful brand recognition will encourage people to buy your product even if it has an inferior taste to your rivals.
Acquire Valuable Data
With effective brand awareness, you can collect valuable data about your target audience. With such information, you can create effective marketing campaigns to acquire new customers. More than 90% of customers are likely to buy from brands that offer personalization. Companies can create personalized products from the data they gather from having brand awareness and recognition.
It’s important to create awareness of your brand so that you can reap the rewards of an increased market share, reduce the impact of price sensitivity, and acquire valuable data. You can get the help of inventory management software such as the one provided by AltheaSuite to get real-time data reports which help build your brand awareness.
Our cloud based inventory management software is your one-stop solution for all ERP needs. The software integrates with most online platforms such as Shopify, QuickBooks, and BigCommerce. You can also book a demo or get a free trial of your software for your business.