Branding Statistics for Small Business Owners
Many people think branding is just for large corporations with big budgets. But did you that it’s just as important for a small business to have a strong brand presence? There’s a lot you can do to significantly strengthen your brand without spending a large amount of money. In this post, I’d like to share some branding statistics that I recently came across to show you how creating a strong brand will help attract more customers, gain trust with your audience, and show your customers what sets you apart from your competitors.
53% of customers expect small businesses to have a brand purpose
Did you know that people expect a small business to have a larger purpose or meaning behind their brand? Even though this expectation is higher for large companies, 53% of people still expect small businesses to have a larger purpose.¹ It’s essential for small business owners to take the time to think about why their business exists. This is the heart of your business. When you are clear on why you are in business and what you’d like to achieve, your decisions will become easier as you will quickly recognize what aligns with your purpose and what doesn’t.
If you are a little unclear about your purpose or if it has changed over time, it may be time to revisit your mission and vision statements. My brand clarity workbook can help you through the process with step-by-step questions to guide you.
Customers will pay 50% more for businesses making an impact
For example, Patagonia is one of the famous purpose-driven brands that has taken on social responsibility. Patagonia was created by mountain climber Yvon Chouinard, who was looking for better climbing equipment that wouldn’t damage the mountain. Chouinard’s concern for quality and the environment influenced the creation of Patagonia’s core values: quality, integrity, environmentalism, justice, and not being bound by convention. Customers are willing to pay more for Patagonia’s products because of the organization’s devotion to their core values.
76% of consumers will stop purchasing from brands with no social responsibility
Brand responsibility continues to be an important factor for consumers. 76% of people said they would stop purchasing from businesses that don’t treat their employees, communities, and the environment well.² It’s not enough to simply include social responsibility in your plans; you have to follow through and ensure that it happens. People will notice your efforts, and you will benefit from a stronger bond with your customers.
Branding consistency can increase revenue by 20%
When you create a brand style guide, and (this is the important part) you use the style guide for all of your brand decisions, your brand will be consistent across all channels. When your brand achieves that level of consistency, your business will benefit. The consistent use of your brand will increase your revenue from 10% to 20%.³
For 60% of consumers, trustworthiness and transparency are the most important brand traits
Consumers value many different qualities in their favorite brands, but the most important quality for 60% of consumers, is transparency and trustworthiness.⁴ Being transparent in all your business dealings, helps consumers learn about who you are and what you stand for. People appreciate openness, and it helps to show customers that they can trust you.
You have 7 seconds to make a first impression
In a world awash with information, people take shortcuts. There just isn’t enough time in the day for people to give everything their undivided attention. It turns out that you have just seven seconds to make an impression on your audience.⁵ In just seven seconds, your potential client is deciding whether you are trustworthy or not. Given this brand statistic, you can see why your visual brand identity is so important. Your logo design needs to make an instant connection with your audience. That is why it’s worth the time and energy to create a professional-looking logo that visually communicates with your audience who you are.
85% of companies have brand guidelines
There is good news and bad news concerning brand guidelines. The good news is that most companies (85%) already have established brand guidelines.⁶ This is good news because brand guidelines help to ensure brand consistency. However, the bad news is that only 30% say that the brand guidelines are enforced. This means that many companies are missing out on an easy opportunity to build brand recognition and consistency simply by following the guidelines.
Brand color increases brand recognition by 80%
Typically, a small business owner will select the brand colors while creating the visual brand identity for the company, which includes elements such as the logo design, typography, and brand colors. Colors are used to convey certain emotions to your audience, so your brand colors should align with your brand personality and values. And according to branding statistics, color boosts brand recognition by 80%.⁷ To effectively boost your brand recognition, make sure the colors you select accurately reflect your brand and use those exact colors in all your business communications.
Blue is the #1 branding color
One of the best ways for your brand to express dependability, reliability, and trustworthiness is by using the color blue. This should come as no surprise as we frequently see blue used in logo designs. Industries such as automotive (Ford and BMW), technology (PayPal, IBM, and Facebook), and finance (CitiBank and American Express) all include the color blue in their logo designs. If you want to convey dependability and stability to your audience, add a little blue to your brand identity.
64% of customers feel emotionally connected to their favorite brands
Think about some of your favorite brands for a moment. Why do you stay with a particular brand? What does that brand represent to you? You have likely had several positive experiences with the brand, you interact with it frequently, and the brand values and traits align with yours.
Branding, when done well, will create an emotional bond between you and your customers. Your brand represents not only your business but the beliefs and values that are at the heart of your business. It is the association of your brand with these human qualities that connect with customers. A Salesforce study confirmed that 64% of customers feel an emotional connection with their favorite brands.⁸
Conclusion:
No matter whether you’re a large corporation or a small business owner, branding can have a significant impact on your bottom line. When you take the time to create a brand identity design that aligns with your core values, and then use the brand elements consistently across all platforms, you will be rewarded with loyal clients who are willing to pay more for your product and tell their friends about you. The branding statistics show that the efforts you put in today to build a strong brand will pay off with continued long-term growth for your business.
I hope you found the branding statistics in this post helpful. If you’re a small business owner who would like to develop a strong brand identity but isn’t sure where to start, book a discovery call with me. I have multiple packages available to help small businesses create a brand identity that aligns with their values.
References:
“ The Truth, Myths and Nuances Behind Purpose,” Razorfish, November 2021.
“Refocus Restore Run: Trends that will drive brand experience in 2023,” Jack Morton, 2023.
Rawnie Rico, Audrey, “40+ Branding Statistics Every Small Business Should Know,” Fit Small Business, July 3, 2003.
“The State of Personalization Report 2022,” Twilio Segment, 2022.
Gibbons, Serenity, “You And Your Business Have 7 Seconds To Make A First Impression: Here's How To Succeed, Forbes, June 19, 2018.
“State of brand consistency,” 2021 Brand Consistency Report, Marq (formerly Lucidpress).
Chinery, Abby, “What Is the Importance of Colour in Brand Recognition?,” Reboot, December 13, 2003.
“State of the Connected Customer,” Salesforce, 5th Edition, 2022.