3 reasons why B2B branding is worth the investment
We’ve said it before and we’ll say it again: behind every B2B purchasing decision, there’s a human being.
So if B2B marketers place all their focus on pricing, product and the promotion of rational benefits, they’re overlooking something critical to long term success. That is, engaging audiences by tapping into their human feelings and instincts.
This is where branding steps in.
What is branding?
Branding is the process of creating a distinct identity, image and perception for a product, service or company. It encompasses visual elements such as logos, colours, typography and design, as well as messaging and tone of voice styles.
Whether bold and authoritative or friendly and approachable, branding communicates a business’s unique personality.
But a brand extends far beyond a certain cultivated look or sound. It’s the sum total of every interaction, judgement and expectation across all stakeholders, customers and prospects. At its simplest, brand is about meaning.
Strong brands have a clearly defined ‘meaning’, resonate with consumers and are easily recalled in association with a category or need. They are also well known by the people who count most: the target audience.
It sounds obvious, but merely being known can make a huge difference; according to the Ehrenberg-Bass Institute of Marketing Science, there’s a 75% – 90% correlation between relevant brand awareness and sales market share.
With that in mind, perhaps it’s no wonder that a 2023 report by LinkedIn revealed that B2B marketers plan to invest 30% of their budget in brand building. Here are three more reasons why your business should join them.
- Branding boosts memorability
95% of senior marketers agree that branding helps a business differentiate itself from competitors. Be it through consistent messaging, memorable visual elements or exceptional customer experiences – in every case, brand marketing allows businesses to carve out a distinct identity that sticks out in buyers’ minds.
And activity doesn’t need to be drastic; studies have shown that simply using a signature colour can increase brand recognition by 80%.
- Branding builds trust
At its core, branding serves as a bridge between the business and its audience. It’s not just about logos and colours (although, as we know, they’re part of the puzzle). It’s about creating a feeling of trust and connection that resonates with your audience on a deeper level; when people believe a brand shares their values, they’re 77% more likely to buy.
Let’s not forget, B2B buying decisions are often based on risk-adjusted value, where perceptions of brand reliability play a key role. Boosted brand awareness can tip the scales in your favour, helping stakeholders to perceive your business as the ‘safe pair of hands’. In fact, the Harvard Business Review found that a staggering 90% of B2B purchases are made through vendors already known to buyers.
- Branding increases sales
A well-designed B2B brand strategy translates into sales. In fact, a 2013 study revealed that long-term brand awareness-building activity is 600% more likely than multiple short-term sales response activities to deliver large-scale sales, pricing and profitability effects.
The verdict
Focusing on performance may provide a measurable spike in the next quarter, and it serves an important function in the marketing mix. But branding is what makes your business unforgettable, paving the way for stable and sustained growth.
However you choose to go about it, a solid brand strategy can turn buyers into advocates, allowing your business to thrive and stand the test of time.
Not sure where to begin? Get in touch. We’ve got decades of experience helping B2B businesses build and refine their brands – and we’d love to talk to you about yours.
