The Importance of Brand Awareness For New Businesses
Did you know that approximately 20% of all businesses fail within their first year of establishment? Although there are several contributing factors to this outcome, one reason is failing to build brand awareness. Entrepreneurs use all their marketing dollars to develop campaigns that encourage their target audience to purchase while overlooking the importance of a proper introduction.
Who are you? What do you have to offer? How much experience do you have in the industry? What makes your brand credible or trustworthy? More importantly, why should anyone invest their money in your products and services? These are questions that most consumers want to be answered before making a purchase. That’s where brand awareness comes into play.
Simply put, brand awareness is how well your target audience knows your business and its products and services. When a customer hears your name, sees a logo, or listens to a slogan, they automatically equate it to your brand. For instance, a swoosh on sneakers or athletic wear is associated with Nike. Similarly, if you want to “Have it your way” in the fast-food industry, you go to Burger King.
Consumers are picky about who they do business with. Most people do extensive research and get the opinion of others before they make a purchase. If there’s no information about your company and no one to provide feedback, chances are they’ll go to a competitor or more established brand. Here’s a deeper look at why building brand awareness is essential for startups:
- Builds Trust - The more a person knows about a business, the more comfortable they feel investing. Brand awareness is like the “getting to know you” phase where consumers can put a face to the name and learn more about your experience and product offerings. The more information you place out there, the easier it is for customers to build trust.
- Association - Every time your target audience has a need or interest that your products or services can accommodate, you want them to make an association. For instance, although there are multiple search engines, when someone has a question or needs to research something, they often “Google it.” When a person associates your brand with an action or product, they’re more inclined to make a purchase.
- Increased Equity - Brand awareness ties into brand equity. The more positive experiences people can equate to your brand, the more valuable it becomes. When your target audience recognizes your brand and associates it with an action or product, they’ll make a purchase. If the experience is positive, they’ll make repeat purchases and share their experiences with others.
Now that you have a better understanding of why brand awareness is essential, what are some avenues you can use to get the word out about your startup? Below are a few suggestions.
- Newsrooms - The key to building brand awareness is putting out positive content about your company. Whether it’s press releases, magazine or news interviews, or awards, the more favorable information you can present about your business, the easier it is to gain credibility and recognition. An online newsroom is a digital space where you can store company news for target audiences, journalists, investors, and more to evaluate.
- Influencers - Influencer marketing has become a popular tool for building brand awareness. When you have individuals with a considerable following vouching for your startup, it humanizes the brand, eases apprehension, and increases sales potential.
- SEO - Producing content is only part of the equation. Your content should also be optimized to generate positive results on search engines like Google. When you incorporate key terms and phrases that relate to your brand into articles and social media posts, the links will pop up in searches ahead of the competition, increasing recognition, page visits, and potential for sales.
Starting a business could prove beneficial when it’s done efficiently. Although there are multiple aspects to focus on when coming to the market, entrepreneurs are encouraged to remember the significance of brand awareness. When target audiences can quickly identify your company and associate your products and services with needs, actions, and interests, you have a better chance of succeeding.