The Importance of a Strong Brand in the Retail Industry
“A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another.” – Seth Godin
What do you think of when you hear the word “brand?” Many people picture a logo or slogan, but your brand is really the perception of your business as a whole. Read along to see why we think a strong brand is so vital in the retail industry.
Creates a Competitive Advantage
The industry is crowded with so many online and offline retailers that offer similar products and services. Your brand is what will help you differentiate yourself from your competition. One example of a retail brand with a strong competitive advantage is Lululemon. Many retailers sell athletic clothing and accessories, but Lululemon sets itself apart with its superior product quality and innovative designs. Lululemon customers are willing to pay a premium for their high-quality apparel. The brand is also passionate about sustainability and positive social impact, which are big concerns for many consumers.
Builds Customer Loyalty
The Pareto Principle states that 80 percent of your company’s future revenue will come from 20 percent of your current customer base. The more a consumer resonates with your brand, the more likely they are to buy from you again (Forbes). Creating a loyal customer base will help drive sales and ensure continued success for your business.
Generates new customers
Branding helps you show potential customers what your business is truly about. A strong brand will appeal to people’s emotions and make them feel more connected to your business, which will attract customers who haven’t shopped with you before. And because great brands have loyal customers, they are likely to refer potential new customers through word of mouth – which is arguably the most effective marketing strategy in the book.
Does your retail business have a strong brand? If not, LTD Connect can help! Reach out to us and let’s discuss how to improve your brand so you can have success for years to come.