Companies have numerous tools to increase conversions and sales but often overlook one crucial element: brand awareness. But it is just as important as conversion and sales. It can be the deciding factor in a customer’s decision to choose another brand over yours.
First, let’s define what we mean by “brand awareness.” Like it sounds, it refers to the extent potential customers know about a brand. Marketers often use brand recall to measure brand awareness. Brand recall is the knowledge of a company name, logo, slogan, and overall brand identity without present exposure. Brand awareness is about making your brand a recognizable and memorable part of a customer’s consciousness.
Why is brand awareness so important? For starters, it’s a way to differentiate your brand from competitors in a complex and busy marketplace. With the number of options available to consumers today, having a distinct identity that sets your brand apart is necessary. Quick exercise: first, think of a particular brand. Now, could you identify something distinctive about it? Easy task? Because distinctiveness is vital to brand awareness in general.
Additionally, brand awareness is a necessary step toward establishing trust and credibility. Customers who have heard of your brand before may be more likely to trust your products or services. Similarly, brand awareness can lead to increased customer loyalty and repeat business. Customers positively associating with your brand are more likely to return.
Create cohesive and harmonious brand messaging and identity across all channels. Doing so ensures customer clarity and opportunity for scalable brand recognition. While becoming obsessed with short-term sales goals may be easy, neglecting brand awareness can impede long-term growth and jeopardize businesses.
Overlooking brand awareness has negatively impacted companies in the past. One of the most notable examples is Sears. Once the largest retailer in the US, Sears needed to catch up with the age of technology. As a result, they were among the last to enter the eCommerce space long after Amazon found its dominance. Their sluggish adoption led to declining sales and, ultimately, bankruptcy. The company’s lack of investment in brand awareness and failure to differentiate itself from competitors significantly contributed to its downfall.
Another example is Toys “R” Us. The once-beloved toy retailer filed for bankruptcy in 2017 due to several factors, including a failure to invest in brand awareness. The brand benefitted from almost monopolizing brick-and-mortar toy sales (poor, K-B Toys). But, similar to Sears, the company’s website and digital presence were lackluster, and they were slow to adapt to the changing retail landscape. With general retailers like Amazon and Walmart picking up steam, Toys “R” Us banked on its historical brand dominance. Alas, Toys “R” Us trailed its competition, which invested heavily in brand awareness and digital marketing. You don’t need to stay atop people’s minds when you’re the only shop in town. Toys “R” Us found out the hard way that sustained brand building is crucial to brand health longevity.
Brand awareness is essential to any successful marketing approach. Creating a distinctive and unforgettable brand identity can help companies differentiate themselves from their rivals, establish trust and credibility, and drive long-term expansion. That said, avoiding common traps such as neglecting to invest in brand awareness or failing to create a uniform brand identity is essential. As demonstrated by the failures of Sears and Toys R Us, ignoring brand awareness can damage a company’s continued success.