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5 Reasons Branding Is Important in Business

Take the guesswork out of branding and learn about companies who are doing it right.

graphic of a logo displayed on a storefront, website, and cell phone screen
December 19, 2022
Kathleen Crampton
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Reading time about 7 min

They say don’t judge a book by its cover, but if we’re honest, we all do it a little anyway — especially when it comes to where we decide to spend our money. As a business owner, you want to snag that good first impression. That’s why investing in your brand is investing in the future of your business.

When you think of branding, you may immediately visualize famous company logos, like FedEx or UPS for example. While logo design does play a role, there are many other important factors that go into a good brand. Let’s review the five tenets of the importance of branding.


Branding Reflects Your Business

Branding goes beyond your company logo, colors, and typography. It reflects your business’s vision, mission, and values. So, it’s important to start there — even before you design the logo, website, and any product labels.

  • Vision. Have you taken some time to consider your company’s vision? In other words, ask yourself questions like: what is the purpose of the business, and what do you want to achieve? How do you want to inspire your employees and customers?
  • Mission. Where do you see the business heading in 3, 5, 10 years? How do you plan on accomplishing the vision?
  • Values. Finally, defining your company’s values provides the guiding principles and beliefs that your business will adhere to.

Your vision, mission, and values should be apparent in your brand and should be consistent and reflected across all channels: your website, product, advertising, social media platforms, storefronts, and more. If your business isn’t doing what it’s said it will do, your customers will notice, and not in a good way.


Tesla Logo


Branding in Action: Tesla

Tesla’s corporate vision statement is “Create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.” Its mission statement is “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” This statement builds on the vision by clearly answering how it will become the most compelling car company. Finally, its values are “doing the best, taking risks, respect, constant learning, and environmental consciousness.”

Tesla’s branding reflects the company’s vision, mission, and values across all channels and delivers a consistent message to its current and potential customers.


Branding Builds Trust & Loyalty

Building brand trust is one of the best things you can do for your business. You may be wondering, “Why is branding important for gaining trust?” Because what your business does, how it responds to customers, and how it treats employees are all part of the brand.

If your business doesn’t fulfill the promises it makes in its vision and mission statement and fails to put its core values into practice both in the workplace and outside of it, people will notice — especially at a time when audiences are watching closely on social platforms. But that extra scrutiny can be a good thing, as it keeps companies in check. If a product or service doesn’t fulfill expectations, be quick to respond to the customer, whether in an email or a response to an online review. Take the time to craft a positive reply and communicate, “we’re here to help.”

To garner trust and loyalty with your brand, stay transparent, honest, and positive, and always keep your values, vision, and mission as your north stars. Don’t ghost your customers, and they won’t ghost you.

Patagonia logo

Branding in Action: Patagonia

Patagonia’s core values are:

  • Build the best product
  • Cause no unnecessary harm
  • Use business to protect nature
  • Not bound by convention

The brand has built customer trust and loyalty by fulfilling these values. New and repeat customers like knowing that 1% of the company’s sales are pledged to preserving the environment. They enjoy seeing that clothes are made with environmental and social responsibility in mind. The company has fostered an environment of honesty, transparency, and inspiration, which keeps customers coming back.


Branding Affects Customer Perception

Branding is important because it affects your customers’ perception of your business. In the physical sense, if your company has inconsistent branding from product to store to website, you’ll confuse people and muddy your message of what your business is all about.

Don’t be afraid to be bold with your brand. Choose a logo, colors, fonts, and design that accurately reflect your business’s aesthetic. Then, make sure to update all physical signage and online platforms to create a cohesive look and feel. You want your brand to stand out among competitors so that people will notice and remember your business.

But physical branding isn’t enough. According to a study conducted by eMarketer, 95.6% of respondents said that one of the leading factors that increases their trust in a brand is if a company has a good online reputation. You need to consider the importance of branding in online reviews, comments on social media platforms, and community engagement to ensure that customer perception is positive.


Netflix logo


Branding in Action: Netflix

There’s no doubt that Netflix’s minimalistic red “N” is recognizable across the globe, but as we now know, that’s not the great branding example of the business: its online reputation is. While the influx of streaming services has proven difficult for Netflix, customers still believe it provides value and fulfills its promises. Additionally, the company provides consistent branding through its social media presence: Its fun, informative, and snarky-in-a-good-way Twitter account connects with more than 2.2 million followers.


Branding Drives New Business

Getting new business is one of the greatest advantages of branding. We’ve already covered that good branding builds trust, loyalty, and positive customer perception. All these aspects work together to help drive new business and grow your company.

Branding helps establish your company in your physical and online community and create brand awareness. The more people see it and hear about it from people they trust, the more likely they are to give you their business. Create a connection with customers to help drive home the importance and value of what your business offers. If your brand gives them positive feels, that could translate to more sales.

Remember that consistency is key. While your marketing copy should be tweaked depending on the channel, your brand message should always stay the same and be recognizably you.


Fenty Beauty logo


Branding in Action: Fenty Beauty

Fenty Beauty has proven the importance of brand strategy in building customer trust and driving sales. Begun by Rihanna in 2017, Fenty Beauty jumped right into marketing the brand and products on social media platforms, hiring brand ambassadors and harnessing user posts to convey its message of diversity in the beauty industry and to offer products that “make skin look like skin.”


Branding Increases Employee Buy-In

One of the final pieces in understanding the importance of branding is that it increases employee buy-in and satisfaction. A good brand is one that not only your customers but also your employees believe in. If the members of your company stand by the mission and core values — and see those at work every day — they are probably more willing to vocalize their satisfaction and sing the business’s praises to people they interact with. Plus, employee satisfaction correlates with employee retention, which ultimately saves your company’s bottom line.

Costco logo

Branding in Action: Costco

While Costco branding in advertisements isn’t as ubiquitous as some other companies, the global retailer has created a community built on customer and employee satisfaction. Taking care of both members and employees is clearly stated in the company’s core values, and it shows. Costco is ranked third in Comparably’s list of the companies with the happiest employees.

How to Start Building Your Brand

Remember these five points when you’re in the weeds of daily business operations and asking yourself, “why is branding important?” Building an effective brand will help drive your company to success. However, developing your brand isn’t easy. There, we said it. It takes careful thought, consideration, time, and effort, but it is one of the most crucial aspects of establishing and growing your business. And you can do it.

Start building your brand with text through EZ Texting. Our text marketing solutions make messaging your company’s sales, loyalty programs, and more a breeze. Send personalized messages, respond quickly to customer questions, and share links to testimonials in just minutes. We’ll help your business reach more customers and keep bringing current ones back.

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