I’m in the market for a new TV ... and if you’ve shopped for a new TV before, you know there are a lot of identical products – they may have different logos, but they’re the same. The question then becomes “How do I decide which one to get?” and my immediate thought is “Oh, I know that brand, that looks cool” or “I’ve never heard of them before, pass.” In reality, the brand I’ve never heard of probably has the same quality as the familiar brand, but in my brain, they’re labeled ‘pass’ simply because of the word/symbol written on the front of the TV.
This works the same whether we’re talking about B2C or B2B marketing; instead of my TV example, replace it with the new accounting software for your business.
Here are 3 reasons brand awareness makes a difference between a sale and a pass no matter what kind of business you’re in.
When considering a new product you don’t often buy, such as a TV, grill, new accounting software, etc., you’re likely to make one of two decisions. The first is replacing your current model with updated model of the same brand; the second is changing to a new brand (usually one of the more popular ones).
Without knowing much about the marketplace and even before you start your research, you probably have 3-4 brand names in your mind, and anything else isn’t even a consideration. I know you just thought of a situation where you did this; it happens to everybody.
That’s why, as a business, it’s important to be one of the top 3-4 brands in someone’s head – otherwise, you’re starting with a huge competitive disadvantage.
Grows trust between business and buyer
Trust is one of the biggest deciding factors when comparing similar brands, and typically you determine that if other people trust the brand, you will too. (It's called social proof.) The trust factor can also make price differences a non-factor because of confidence in the product’s quality and longevity.
If you’re a business, you have to ask yourself, “How do I build trust within the marketplace?”
Eliminates fear of ‘buyer’s remorse’
We’ve all been there: it’s a week after you made a purchase and you regret your decision. Luckily, sometimes the cost is small, so you don’t sweat it too much, but larger investments lead to bigger regrets.
If you, as a business, can create enough trust to eliminate a prospective customer’s fear of buyer’s remorse, the process will be smoother, and smoother processes create happy customers who become repeat customers. Everyone likes repeat customers!!
There’s a point in the buying process where it’s crunch time and making a decision is necessary – if your brand isn’t one of the top 3-4 brands that come to mind, they are unlikely to choose you.
And that’s why it’s important to focus on creating brand awareness. Check back next month for answers to other questions you may have and to learn how to increase your brand awareness.