What's Your Edge?
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Build Trust and Loyalty: The Importance of Brand Authenticity for Your Business| What’s Your Edge?
Building a brand is like building a house. You need a solid foundation, strong walls, and a roof that keeps everything inside safe and dry. When you have an authentic brand, you have the foundation for building customer trust and customer loyalty, as well as trust with employees, and partners. But, without authenticity, your brand reputation is like a house of cards, ready to come tumbling down at the slightest gust of wind.
Brand authenticity is the degree to which a brand is perceived as being genuine, honest, and true to its values and promises. It’s not just about having a strong logo or a catchy slogan; it’s about creating a brand that customers can trust and believe in. Authenticity means being true to who you are as a brand and consistently delivering on your commitments.
As a key element of customer-centricity, the bottom-line impact of an authentic brand includes:
- Amplified customer trust, loyalty, and advocacy
- Higher revenue from existing and new customers
- Better brand equity which moves in tandem with customer equity (LTV)
- Improved profitability
- Increased shareholder value
Before you say, branding matters more for B2C (business-to-consumer) than B2B (business-to-business) companies, I want to reassure you that is not the case. In fact, 70% of B2B buyers cite company reputation as the most influential factor when choosing with which company to do business.
Authentic branding can help B2B companies differentiate themselves from their competitors, establish customer trust and credibility, and increase customer loyalty. We believe that to be successful, all brands need to be authentic.
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Here are three examples of B2B companies that have successfully created an authentic brand by staying true to their values, remaining consistent in their messaging and positioning, and focusing on their customers’ needs and expectations:
- HubSpot is a marketing, sales, and customer service software company that has built its brand around the concept of inbound marketing. The company’s brand values, which include being helpful, transparent, and empathetic, are reflected in its marketing campaigns, blog posts, and customer interactions. HubSpot’s commitment to helping its customers succeed has helped the company build a loyal following among B2B marketers and sales professionals.
- Salesforce is a customer relationship management (CRM) software company that is known for its commitment to social responsibility. The company’s brand values, which include trust, innovation, and equality, are reflected in its marketing campaigns, events, and product offerings. Salesforce’s commitment to social responsibility has helped the company attract customers who value sustainability and ethical business practices.
- Mailchimp is an email marketing software company that has built its brand around the concept of simplicity. The company’s brand values, which include being easy to use, fun, and empowering, are reflected in its marketing campaigns, product design, and customer support. Mailchimp’s commitment to making email marketing accessible to everyone has helped the company build a loyal following among small businesses and startups.
Why is brand authenticity important? Because brands perceived to be authentic garner more customer satisfaction, retention, and advocacy, which ultimately leads to increased revenue and growth. When a brand is perceived as authentic, it creates a sense of dependability and reliability, just like a house that is built to last. When customers believe that a brand is authentic, they are more likely to buy from that brand and remain loyal over time. Authenticity also helps businesses stand out in a crowded market. In a world where your customers are bombarded with marketing messages at every turn, an authentic brand can cut through the noise and capture their attention.
Finally, brand authenticity is critical for customer-centricity. Authentic brands are more likely to focus on the needs and preferences of their customers, leading to better products, services, and overall customer experience.
Here are a few additional data points that back up these claims.
- Prior to merging with BCW, Cohn & Wolfe surveyed 15,000 people around the world and found that 91% of them are willing to reward a brand they consider authentic through purchases and recommendations.
- 64% of participants in a study by Edelman said they are more likely to buy from a brand that shares their values.
- A study by the Harvard Business Review found companies that are perceived as authentic by their customers outperform their competitors by a factor of three.
- 73% of participants in a PwC study say that a good experience is key in influencing their brand loyalties.
The implications of having an authentic brand are significant when it comes to messaging and positioning. Customers are becoming increasingly savvy and skeptical. They can easily spot a brand that is trying too hard to be something it’s not. The effects of messaging that fails to be perceived as authentic are long-lasting.
Messaging is the way a brand communicates with its target audience. An authentic brand has a clear and consistent message that resonates with its target audience. This message is reflected in everything the brand does, from product development to selling to its customer service.
Positioning is the way a brand is perceived by its target audience in relation to its competitors. An authentic brand that delivers on its promises can position itself as a leader in its industry and stand out from its competitors. An ever-changing market, including new look-alike competitors, or entry into new markets or segments, can necessitate a change in your positioning and messaging strategy.
The 5-Step Ladder of Success to Build Brand Value
So, how can a business create an authentic brand? Here are five steps to get started:
- Define your foundation: Just like a house needs a strong foundation, your brand needs a set of core values that serve as the foundation for everything you do. What do you stand for as a brand? What are the core principles that guide your business? Defining your values is the first step to building a strong foundation for your brand.
- Construct solid walls: With a strong foundation in place, it’s time to build the walls of your brand. These walls represent the consistency and reliability of your brand. Be transparent about your business practices, products, and services. If something goes wrong, own up to it and work to make it right. By building solid walls of trust and transparency, you’ll strengthen brand reputation and create a strong sense of reliability and dependability around your brand.
- Install a sturdy roof: A sturdy roof protects your house from the elements, and in the same way, your brand needs to protect your reputation. Make sure you deliver on your brand promises no matter what. If you promise exceptional customer service, make sure your customer service is exceptional every time. By delivering on your promises, you’ll build a strong brand reputation, as well as customer trust and customer loyalty.
- Listen to the sounds outside: Just like a house needs to be aware of the sounds outside, your brand needs to listen to its customers. Pay attention to what they are saying and need. Use their feedback to improve your products and services, and to inform your marketing and sales initiatives. By listening to your customers, you’ll build a brand reputation that is responsive to their needs and concerns.
- Make sure everything is in sync: Just like a house needs everything to be in sync to function properly, your brand needs consistency across all touch points. Make sure your messaging, product and service processes, and customer experience are aligned to the customer journey and synchronized across all channels. By doing so, you’ll create a sense of professionalism and dependability around your brand, therefore building your brand reputation.
An authentic brand is essential for B2B companies that want to differentiate themselves from their competitors, establish customer trust and credibility, and increase customer loyalty. You can successfully begin building an authentic brand by staying true to your values, being consistent in your messaging and positioning, and staying committed to being a customer-centric organization.
Building a house takes time and resources. When well-built and maintained your home appreciates in value. So does building an authentic brand. View the effort as a long-term investment that ultimately pays off in the form of long-term success.
Have questions about how to create an authentic brand? We have expert answers.