Costly Blunder: Neglecting Quality Branding Can Hurt Startup Founders Significantly
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In today's crowded marketplace, standing out from the competition is crucial for any business to thrive. Branding, often overlooked, plays a pivotal role in this endeavour. It's not just about creating a logo or a catchy slogan; it's about crafting an emotional, human connection that drives customers to choose one company over another, even when they appear similar on paper.
With the rise of generative AI, a clear and distinctive brand has become more important than ever. It's the fuel that helps a business cut through the noise and survive. A cohesive and recognizable visual identity, focusing on consistency in fonts, colours, and photography styles, is key. But branding extends beyond aesthetics. A singular point of view should be defined to make a brand known for something specific.
Great brands evolve and should be revisited and refined as a company scales. They are not set in stone but are living, breathing entities that grow and adapt with the business. Erik Huberman, the CEO of Hawke Media, a leading full-service marketing consultancy, emphasises this point. He is also the author of "The Hawke Method" and a renowned expert in marketing and business development, known for his innovative approaches to marketing strategies.
A well-crafted brand can act as a multiplier for a company. It makes paid media more effective, increases organic reach, improves conversion rates, and enhances investor confidence. On the flip side, branding that is merely "good enough" can lead to lost revenue, low margins, and a constant fight for attention. Investing in branding early on is crucial for long-term success and growth.
However, branding should not be an afterthought. When it is, it can attract the wrong customers or lead to losses against better-positioned competitors. A business that only looks better than its competitors without meaning more will not succeed. The 'why' behind a business is crucial to clarify, as it goes beyond making money and defines the tension being solved.
A case in point is Liquid Death, a company that sells canned water. With its bold, distinctive brand, it has managed to set itself apart from other wellness brands. But branding is not just about being different; it's about resonating with customers. A verbal identity that speaks to customers should be built, and it's important not to outsource this to AI.
In conclusion, a strong brand shapes how customers perceive a company's value, how much they are willing to pay, how often they return, and how they recommend the company to others. In today's competitive market, investing in a well-crafted brand is not an option; it's a necessity.
The Forbes Agency Council, an invitation-only community for executives in successful public relations, media strategy, creative, and advertising agencies, echoes this sentiment. They recognise the power of a strong brand and the impact it can have on a company's success. As Erik Huberman aptly puts it, "A mediocre brand can silently bleed a company every quarter by increasing customer acquisition costs and decreasing customer lifetime value."
