According to the annual Edelman Trust Barometer 2023 report, trust is one of the key reasons why customers buy goods or services. 59% of consumers are ready to purchase because they trust the brand. It builds loyalty and a sense of security; on the other hand, it makes a good reputation.
It is essential to build a strong brand, but it is more important to make it recognizable. Today, it is almost impossible not to know the Apple, Nike, or McDonald’s brands because their level of recognition is very high.
When we talk about brand awareness, it is primarily the number of people who know about it. What the audience thinks about a company or product will help identify problems, improve operations, and increase sales accordingly.
Awareness varies and depends on the level of consumer awareness of the brand:
The basic principle is when a consumer identifies a brand by its characteristic attributes (logo, name, packaging, line of business). Everything matters, even the color. According to a Reboot survey, using a corporate color can increase recognition by 80%.
The ability of consumers to recall a brand or product without assistance.
Top of Mind
It is your success. A consumer thinks of a brand immediately when talking about a specific category of goods or services. If this figure is more than 50%, you are the undisputed leader, and the relevant product category is associated only with you.
Often, companies need to pay more attention to brand awareness and focus on marketing and sales. Although this strategy has a right to exist, its effect will be short-lived. You need to work on recognition comprehensively and take into account every detail:
1. The first step is understanding who you are and what you represent, your story, and your tone of voice. It is the positioning that sets you apart from your competitors.
2. Create a memorable brand (from the logo to the color scheme). The name and logo are your face. From this moment, perception is formed, so be individual and show it in your identity.
3. Demonstrate value. People choose brands and companies they trust. They may be less sensitive to price or product and willing to spend more if they like the brand. 63% of global consumers prefer to buy goods and services from companies that “demonstrate a purpose that reflects their values and beliefs” and avoid those that do not (RepTrack Trust Report 2023).
4. Get to know your target audience. It is essential to know what potential customers expect and say about you. Use social listening tools and constantly monitor mentions in the media and social networks.
5. Use social media correctly. Select a platform where your target audience is present and create an effective promotion strategy representing the brand.
Brand awareness builds audience trust and loyalty in the future. The latter improves brand awareness. That’s how the relationship works.)
Loyalty is one of the success factors. It manifests itself in the fact that the client has reasons to choose another brand but chooses you. It is a specific emotional connection between the brand and the consumer. If a customer feels trust and understands that your product fully meets their needs, they are unlikely to pay attention to competitors’ offers.
Loyalty also has a significant impact on the revenue and profit of your business. Loyal customers tend to spend more and are also less price-sensitive.
Loyalty is critical for brands for the following reasons:
- contributes to the brand’s long-term development and builds a loyal customer base. Attracting new customers is much more complex, so a loyal customer is the most valuable asset for your business.
- a loyal audience helps reduce marketing costs. Regular customers are the best advertising and an excellent way to build a strong reputation.
- creates a competitive advantage. Having a loyal audience gives you the confidence that your customer is more likely to select you again, even if your competitors’ offer is better.
- makes it easier to launch new products. Loyal customers are more likely to try new products from your brand.
Periodic measurements are a necessary tool for assessing the current situation. It is where various marketing research methods (surveys, interviews, or focus groups) can help you track changes and keep in touch with your audience.
A brand awareness survey allows you to get answers to some crucial questions: how familiar consumers are with your brand and whether they can associate your name and logo with your products or services; how consumers describe your brand; whether you have a strong personality and why you are trusted.
A loyalty survey will help you understand the opinions and habits of consumers who support you. Ask customers specific questions about products, prices, and convenience to determine what keeps them returning. Also, ask them if they would recommend your brand to others. Conduct qualitative research to assess your audience’s likes, which will help you position and develop your brand.
The close relationship between awareness and loyalty is the basis of successful brand management. It is an essential element for achieving long-term business success and building a solid reputation in the future.
Author: Iryna Balakhovtseva