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Writer's pictureSweta Tirkey

Why is Brand Awareness so Important?

Updated: Nov 18, 2022

First impressions matter when it comes to brand recognition, just like when meeting new people. First let us look at the three types of brand awareness: brand recognition, brand recall, and brand dominance.

Brand recognition: When a customer interacts with a brand, brand recognition occurs when he can identify the brand and tell it apart from other brands - he can recognize the brand when it is offered at the point of sale or sees the visual packaging. In this case, the buyer does not need to remember the brand name. For example, a customer sees a swoosh sign and knows it is Nike.

Brand recall: a spontaneous recall of the brand from memory when the customer is prompted by the product category. For example, when we consider sports brands, a customer thinks about Nike and Adidas.

Brand dominance: when most consumers can only recall the name of a single brand, such as Coca-Cola, Xerox, Bisleri, etc., when given a recall challenge.

The first stage in positioning your brand is raising brand awareness. It's a continual activity that helps attract new clients while also encouraging repeat business from current ones. Businesses invest millions to get their brands ingrained in the brains of the public. Many have even been successful in gaining the status of verb in our everyday language - we reserve an Uber instead of a cab.

Benefits of brand awareness:

Bigger market share for the brand

Retaining customers by building a strong emotional bond between the brand and customer

Customer Loyalty - According to PwC, customers are tolerant of the errors their favorite brands make. Only 17% of clients refuse to work with their favorite company after a single blunder.

Brings more referrals - 94% of people, who are emotionally engaged with a brand, would recommend it to their friends, colleagues, and family.

How to measure brand awareness:

Direct traffic to your website

Traffic from backlinks to your website (social media, blogs, etc.)

No. of mentions on social networks

Conduct research via surveys

Volume of searches for your brand name

Strategies to increase brand awareness:

Give your brand a personality

Focus on your values for people make brand choices with their hearts more than with minds

Focus on attending and holding events

Focus on social media marketing by posting consistently, handling customer service, and keep your followers engaged

If you believe that because you are a well-known brand, you will have plenty of time to do it right, think again. Consider losing 25% of your clients in a single day. Because with just one negative client encounter, that is exactly what may occur. Even when individuals in the United States adore a business or a product, 59% of them will stop doing business with them after multiple negative incidents, and 17% after just one.

After one negative experience, 32% of all customers would stop doing business with a brand they adore. 49% of people in Latin America claim they would stop using a brand after a negative encounter. So know the benefits of brand awareness, measure the current brand awareness level, and strategize to increase your brand’s awareness.

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