Logos and visual identities – why do they matter? Is it really necessary to spend money on a design agency to develop a new logo and visual profile? No, but when done right a strong visual identity comes with a lot of proven benefits that are sure to impact your business positively in the long run.
Say you’re driving down a highway. In the distance you spot a golden M that gets bigger and bigger for every second you drive. Suddenly, you get hungry. There is nothing about this golden M letter by itself that screams food but since you’ve already established that that’s the McDonalds logo and you know you can get food at McDonalds you get hungry when you see the logo. Identification. That’s the power of a strong logo and visual identity.
Big companies like Nike, Apple, and McDonalds spend millions of dollars every year to market and develop their brands. They know that it directly affects sales and market share. I know you don’t have as big a market as any of these big brands, but there are several documented benefits of a strong identity that is important to all businesses.
1. You get better paid
A strong and professional identity has a price. Why is anyone willing to pay tens of thousands of dollars more for a Volkswagen Passat than a Skoda Superb? They are practically the same car, made with the same components of the same factory! For smaller businesses, a strong identity places you in the mind of the customer and conveys the professionalism and quality that is worth paying a little extra for. Professionalism and quality that many of your competitors do not radiate in the same way
2. You deliver quality
“You get what you pay for.” A familiar concept with a lot of truth. If a Passat costs more than a comparable product (Skoda Superb), it must be because the Passat provides better quality. No, not necessarily! The Skoda Superb is built with the same parts as the Passat; the quality is identical! Customers pay more for what they perceive as a brand that is better or of higher quality. The same principle applies to smaller businesses. There is rarely a big difference between what you offer and what your competitors offer, but with a strong identity, in the customer’s opinion, you are positioned to deliver better quality. In short: Look better than your competitors and they will find you better
3. You get recognition and loyalty
With a strong identity, customers are much more likely to remember your business. A firm brand name and logo helps keep your company in the mind of your potential customers. People like to be associated with “good” brands. Customers are more likely to recommend you to others if they have a positive experience with your brand
4. You are to be trusted
A strong identity creates an image of an established business that has existed long enough to become known. It is more likely to be seen as experienced and generally regarded as more reliable than competing firms. In short: A strong identity makes you look more established
5. You stand out from all the others
Businesses are continually looking for ways to differentiate the brand from its competitors. A strong identity can make you stand out in a crowded marketplace. For smaller companies, investing in identity can help you win over other, more prominent competitors.
All of this is a two-edged sword however. A bad logo and visual identity will have the exact opposite impact, and we don’t want that. It’s therefore wise to hire a professional to do it instead of the postman’s daughter’s cat that once painted a painting with its paws.