The Absolute Necessity of Brand Identity for Small Business

Did you know that around 20% of small businesses fail within the first year?  However, many of these failures could have been prevented by having a strong brand identity.

What exactly is a brand identity?  To start, it is more than a logo or a catchy tagline.  It is the soul of your business and includes the unique combination of visual elements, personality, and values that differentiate your business from the competition and make a lasting impression on your customers.  This is to say that your brand identity is “the distinctive and relatively enduring characteristics of a brand (He, et al 2016) or is the face your business presents to the world.

The place where your business is located can also have a brand identity called a “destination brand” (Yavuz and Madran 2024).  It is possible, in part, to have your business brand identity a part of the destination as well.

In the saturated market of today, a strong brand identity is not optional; it is a necessity.  It might be easier to think of your brand identity as a Pinterest Pin, your goal is to get your Pin to stand out in a sea of pins.  Having a brand identity that stands out is a secret weapon that cuts through the cacophony of noise, attracts loyal customers and allows your business to thrive in the long run.  This post will explore why brand identity is crucial for the success of your small business and how you can create one that will stand out and attract your target audience.

Elements of Brand Identity

Logo for Brand Identity

Your logo is the main visual representation of your brand identity.  It is the first thing that customers see, so it needs to make a powerful, positive, and memorable impression.  A logo that is well-designed communicates the essence of your brand identity and makes it easily recognizable.

Types of Logos

• Wordmark (Logotype): Wordmarks are logos that feature your company name stylized in a unique font.  Some examples are Google, Coca-Cola, and Disney.  It is a simple and effective way to build brand recognition based on your name.
• Lettermark (Monogram): Similar to the wordmark, this logo is made of your initials that are used as a visual symbol.  Examples are HBO, CNN, and IBM.  This type of logo is a good choice if your name is too large to be used as a wordmark or if you want to be more concise.
• Pictorial Mark (Symbol): This logo uses an icon or symbol to represent your brand such as Apple’s apple or Twitter’s bird (when it was called Twitter).  It is a strong visual cue that can understood in many languages.
• Abstract Mark: An abstract logo that uses a visual element that represents feelings or concepts related to the brand.  An example is Nike’s swosh.  Being highly distinctive, like the pictorial mark, they are understood by many cultures and builds a strong brand identity.
• Emblem: These logos combine text and symbols within a badge or crest.  Emblems are most often used by organizations, schools, government agencies, as well as some businesses.  Two examples include Ford and Starbucks.

How to Have an Effective Logo

• Keep it Simple: Avoid clutter and overly complex designs.  Simple is easier to recognize and remember.
• Make it Memorable: Make it unique in order to stand out from the competition.  Try not to use online logo makers, but rather make your own and aim for something that sticks in people’s minds.
• Versatility is Key: Make sure that your logo looks good in different sizes and formats (website, social media, and print).  If possible, try to have a square format version.  You will thank yourself when you have to do social media icons.
• Consider the Colors: There is a lot of psychology in color.  Choose colors that align with your brand’s personality and gives the right emotions.  See the next section for more on colors.
• Consider the Shape of the Logo: Different shapes, such as circular, square, rectangle, triangle, etc. have different meanings (Andrade, et al 2024).
• Reflect your Brand: The logo should accurately represent the values of your brand, mission, and target audience.

Examples of Successful Business Logos

• Death Wish Coffee: The skull and crossbones captures the brand’s edgy personality and claims that they have the “strongest coffee.”
• Moo: Moo is an online print and design company that uses a simple cow illustration that is memorable and appropriate for the name.
• Shopify: The shopping cart this company uses is recognizable and communicates the e-commerce focus of the business.

Color Palette for Brand Identity

Color is a powerful communication tool and can really set the scene by bringing about emotions, influencing perceptions, and triggering actions.  In branding, the color palette you use is more than the hues, it is a key component of your visual identity.  That is to say, it speaks unspoken volumes about your brand personality and values.

Psychology of Colors in Branding

Different colors are associated with different emotions and feelings.  By knowing  the pyschological effects, you can select a color palette that aligns with your brand message and attracts your target audience.  For some examples of the affects of colors:

• Red: Represents energy, passion, sincerity (Jabber 2014), excitement (Labrecque and Milne 2012), and urgency.  Reds are often used by food and beverage brands, especially energy drinks.
• Blue: Represents trust, security, stability, competence (Labrecque and Milne 2012 and Jabber 2014), and peace.  Blue is a popular color for financial institutions and tech companies, which are businesses you want to have trust and security in.
• Green: Represents nature, growth, ruggedness (Labrecque and Milne 2012 and Jabber 2014), health, and freshness.  Greens are often used by eco-friendly and health conscious brands because of their association with the environment (the green Earth).  My own brand, Silphium Design, uses this color along with yellow, not only because it is the colors of the most of the plants of the Silphium genus, but also because Silphium has a target audience of environmental organizations.
• Yellow: Represents optimism, excitement (Labrecque and Milne 2012 and Jabber 2014), happiness, warmth, and creativity.  Yellow is commonly used by children’s brands and entertainment companies.
• Purple: Represents luxury, royalty, sophistication (Labrecque and Milne 2012 and Jabber 2014), and spirituality.  Purple is often used by beauty and fashion brands.
• Black: Represents elegance, power, sophistication, and mystery.  Black is often used by luxury brands and those that aim for a classic, timeless feel.
• White: Represents purity, cleanliness, simplicity, and innocence.  White is often used by healthcare companies and brands aiming for a minimalist aesthetic.

How to Choose a Color Palette for Brand Personality

• Consider the Target Audience You are Aiming For: Who are you trying to reach or attract?  Then ask, what colors resonate with them (your target audience)?
• Define your Brand Personality: Are you playful or serious?  Modern, classic, or an ecletic combination?
• Think About Your Industry: Are there any colors that are especially associated with your industry?  Those colors that when used, people think, well that must be….
• Create Contrast: Use a combination of colors that complement each other and create visual interest.
• Do not overdo It: Use a minimum of 2-4 core colors to maintain consistency and avoid visual clutter.  Do not overthink it or include too much.  Keep it simple.

Examples of Companies with Effective Color Palettes

• Coca-Cola: This well-known soft drink brand use a red and white color scheme that is energetic, bold, and recognizable around the world.
• Tiffany & Co.: The blue robins’s egg is associated with luxury, elegance, and exclusivity.
• Starbucks: The green and white palette in the logo gives off feelings of nature, freshness, and community and also brings an association with their emphasis on sustainability.
• Fedex: The purple and orange is unique and memorable and gives a sense of speed and reliability.

Typography for Brand Identity

Typography is often talked about in regards to content and blog posts.  However, it is also important in brand identity.  Different fonts bring about different feelings and associations.  For example, a playful script font could be appropriate for a children’s clothing brand, while a bold sans-serif that conveys strength and modernity is more suited to a tech company.  Below is a brief overview of some common font categories and the characteristics associated with them.

Any fonts chosen should be selected for readability in order to make you message clear and accessible to all.  While logos, are not subject to the Web Content Accessibility Guidelines (WCAG), it is still form to have a readable font in your logo.  Other areas need to conform to WCAG.

• Serif Fonts: Serif fonts, such as Times New Roman and Georgia, are traditional, trustworthy, classic, and formal.
• Sans-Serif Fonts: Sans-serif fonts such as Arial and Helvetica, are modern, clean, minimalist, and are considered approachable.
• Script Fonts: Script fonts, such as Brush Script and Lobster, are elegant, creative, sophisticated, dramatic, playful, and feminine.
• Display Fonts: Display fonts, such as Impact and Playfair Display, are bold, strong (Andrade et al 2024), unique, attention-grabbing, and are often used for headlines.

Pairing Fonts

When using fonts, stick to 2-3 complementary fonts at the most.  Below are some tips for pairing fonts effectively.

• Combine Contrasting Styles: Pair a serif-font with a sans-serif font for a balanced look.
• Create a Hierarchy: Use different font sizes and weights to connote visual hierarchy and guide the user’s eye.
• Consider the Mood and Tone: Make sure that the fonts you choose work together in conveying the brand personality.  Do not make it confusing.

Font Choice Examples for Different Brand Personalities

Fonts chosen should look good not only on your website, but on social media, marketing collateral, and packaging.  Having consistency reinforces your brand identity and creates a cohesive experience for your target audience.

• Playful and Energetic: A bubblegum pink brand might use a rounded sans-serif font like Poppins with a playful script font like Pacifico for accents.
• Luxury and Sophistication: A high-end fashion brand might opt for an elegant serif font like Didot paired with a classic sans-serif like Futura.
• Modern and Minimalist: A tech startup could choose a clean sans-serif font like Open Sans with a geometric font like Montserrat for headings.

Brand Voice for Brand Identity

What if your brand were a person, how would it speak?  What kind of personality would it have?  These questions help to answer what your brand voice is, which is a distinct personality that comes through in all your communications.  This is how you connect with your audience on on emotional level and build a lasting relationship.

Defning Your Brand Voice

Some of the aspects to consider in developing your brand voice are:

• Tone: The overall feeling or attitude conveyed in your communication.  Are you friendly, formal, humorous, informative, authoritative, a grouch, or something else?
• Language: What kind of words and phrases do you use?  Are you casual or professional?  Simple or complex?  Do you use jargon or slang?
• Sentence Structure: Do you prefer short, punchy sentences or longer, more complex ones?
• Humor: Is humor a part of your brand voice?  If so, what kind of humor?
• Point of View: Do you use first person (“we,””us”) or third person?

Examples of Brand Voices in Actual Companies

• Mailchimp: Friendly, helpful, and slightly quirky.  Mailchimp uses humor and a conversational tone to connect with their audience.
• GoPro: Adventurous, energetic, and inspiring.  The voice of GoPro reflects the active lifestyle of their target audience.
• Dove: Empowering, authentic, and inclusive.  Its voice promotes body positivity and self-acceptance.
• Harley-Davidson: Rebellious, independent, and adventurous.  The voice of Harley-Davidson embellishes the freedom and sprit of the open road.

How to Maintain a Consistent Brand Voice in All Your Marketing Platforms

• Website Content: Make sure your website copy on webpages and blog posts reflects your brand voice.
• Social Media: Adapt your social media posts to each platform while maintaining a consistent tone and stlye.
• Marketing Materials: Brochures, flyers, emails, and advertisements should all be reflective of your brand voice.
• Customer Service: People working in customer service should communicate in a way that is consistent with your brand voice in other forms of marketing.

Benefits of a Consistent Brand Voice

Having a strong brand voice helps to humanize your brand and is like going to see a new friend.  It also creates a lasting impression in their minds, making them want to come back.

• Builds Brand Recognition: It makes your brand identity stronger and easily identifiable wherever it is encountered.
• Creates Trust and Connection: When your audience knows what to expect, it builds trust and drives a stronger connection.
• Differentiates You From the Competition: It helps you stand out in a crowded market.
• Strengthens Brand Loyalty: A consistent brand voice encourages your audience to become loyal customers and builds on comfort with your brand.

Brand Messaging for Brand Identity

Brand messaging is the complete conversation that you have with your audience.  It is how you introduce yourself, explain what you do, and persuade people to care.  A lot of the components such as the Unique Selling Proposition (USP) and value proposition has been covered in other blog posts.  But going further, the message is the cumulative effect of all of the words you use.

Defining Your Core Message

The core message of your business is USP and value proposition.  In brief it gives the following.

• Your Brand Promise: What value do you deliver to customers?
• Your Brand Values: What principles guide your business?
• Your Brand Personality: What are the human characteristics for your brand?

Writing Interesting Content

This where a lot of businesses fall short.  You need to consistently put out content that informs and is interesting to your target audience.  In short, do not forget to write.  This includes:

• Website Copy: Your website copy should clear, concise, and inform and persuade visitors to stay around for awhile.
• Blog Posts (Long-form Content): Blog posts should share valuable insights, tell stories, and establish your brand as a thought leader in your industry.  Also do forget search engine optimization (SEO).
• Social Media Posts (Short-form Content): Social media posts should be in conversational tone and use visuals to connect with your audience.
• Marketing Materials: Brochures, flyers, and other marketing materials should clearly communicate the brand message and value proposition.
• Email Marketing: Email can be used to nurture relationships with your audience or can annoy them, if too frequent.  If used, they should have valuable content and promote your products or services.

Examples of Effective Brand Messaging

• Apple: “Think Different” – This is the tagline of Apple and shows its innovative spirit.  It appeals to customers who are creative and value individuality.
• Dollar Shave Club: “Shave Time. Shave Money.” – A humorous and straightforward tagline that communicates the brand’s value proposition.
• Patagonia: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” – A mission statement that reflects Patagonia’s commitment to environmental sustainability and social responsibility.

Benefits of a Strong Brand Identity for Small Businesses

It Differentiates Your Business

Having a strong brand identity gives you an advantage over those businesses who do not.  With it, you can carve out your unique space or niche in the market and make it crystal clear why you are the ultimate choice.  You can do this by:

• HIghlighting Your USP: What makes your business special?
  • Craft a Compelling Brand Story: Weave your USP into a narrative that rings a bell with your target audience.
  • Visual Cues: Your logo, color palette, and imagery can be used to visually communicate your unique offerings.
  • Messaging that Matters: Use your website copy, marketing materials, and social media posts to emphasize what sets you apart.

Creating your Distinct Brand Personality

The most memorable brand have strong personalities, such as being friendly, quirky, or innovative.  To make yours distinct:

• Define Your Brand Archetype: Are you the hero, the rebel, the caregiver, or the creator?  Archetypes provide a framework for developing a consistent personality.
• Infuse Personality into Your Visuals: Use design elements and visuals that reflect your brand’s character (Andrade, et al 2024).
• Let Your Voice Shine: Your brand voice should be unique and consistent across all communications.

Own and Dominate Your Niche

Focus on a particular niche and be the best in it.  For instance, are you the sustainable clothing store for eco-conscious shoppers or the bakery for gluten-free goodies?  Become the expert and attract a loyal following.  To do this:

• Use Targeted Messaging: Tailor your message to the specific needs and desires of your niche audience.
• Have Specialized Offerings: Develop products or services that cater specifically to your niche.
• Build a Community: Create a sense of community by engaging with your niche and sharing your passion and theirs.

Examples of Differentiation

• Death Wish Coffee: Their brand is built around the “world’s strongest coffee,” giving an appeal to caffeine lovers.
• TOMS Shoes: This shoe company has a “One for One” business model, where they donate a pair of shoes for every pair purchased.  This appeals to socially conscious consumers.
• Mailchimp: This email marketing company has a quirky and friendly personality making them popular for small businesses.

Your Customers Recognize You Wherever You Are

You want your customers to recognize all of the components of your brand.  For example, even though a lot of modern cars look very similar, you can still tell the differences in brands.  Earlier cars were even more distinguished.  This is the power of brand recognition.  Even without your logo, people are familiar with your business and brand.

The Impact of Brand Recognition

With a strong brand recognition, you will have:

• Top-of-Mine Awareness: When customers need a product or service you offer, your brand will be the first one they think of.
• Trust and Familiarity: Customers are more likely to trust brands they recognize and feel familiar with.
• Increased Engagement: Customers buy from brands that they recognize on social media and through other channels.
• Improved Sales: Customer chose brands they know and trust, so increased recognition leads to more sales.

Building Customer Loyalty

Once you grab your audience’s attention, you will want to deliver on what you promise.  If you do, then you will have loyalty, which the holy grail of business success.  Having a strong brand identity is pivotal for loyalty.  To garner a lot of loyalty:

Deliver on Your Brand Promise

Your brand identity goes beyond aesthetics and is a promise.  Whatever you promise, your brand must consistently deliver it by:

• Product/Service Excellence: Your offerings must live up to the expectations set by your brand messaging.
• Consistent Customer Experience: Your experience must be seamless and positive across all touchpoints, from your website to customer service.
• Authenticity: Be true to your brand values and personality in everything you do.

Providing Excellent Customer Service

Your customer service can make or break you, as customers want to feel valued and appreciated.  In order to provide the best service have the following.

• Responsiveness: Respond to inquiries and address concerns promptly and effectively.
• Personalization: Tailor your interactions to individual customer needs.
• Show some Empathy: Show genuine care and understanding when customers face challenges.
• Going the Extra Mile: Exceed customer expectations whenever possible.

Positively Impacts the Bottom Line

A well-defined brand identity can be a powerful engine for revenue growth, driving sales, and boosting profitability in several ways.

Attracts New Customers

A strong brand identity acts a magnet drawing in customers who like your values, personality, and messaging.

• Helps You Stand Out From the Competition: A unique brand identity, as discussed previously, differentiates your business and captures the attention of potential customers.
• Builds Trust and Credibility: A consistent brand image inspires confidence and makes customers more likely to chose you over more unknown competitors.
• Communicates Value: An on target message clearly articulates your value proposition and highlights the benefits of your products and services.

Encourages Repeat Business

Customers having loyalty to your brand will keep coming back for more.  To keep them coming back:

• Have a Positive Brand Experience: A consistent and enjoyable brand experience encourages repeat purchases.
• An Emotional Connection: Customers can feel that they are part of something bigger than just a transaction.
• Customer Loyalty Programs: Reward repeat customers with exclusive offers and perks to keep them engaged with the brand.

Your Business Can Charge Premium Prices

If customers think or perceive your brand as high-quality, unique, or desirable, they are often willing to pay a premium for your products or services (Casidy, et al 2019).

• Percieved Value: A strong brand identity creates a perception of value that justifies higher prices.  Think of brand like Nike.
• Brand Differentiation: If you are unique or specialized, customers may be willing to pay more for the exclusivity.  Think of brands such as Gucci, Louis Vuitton, or Hermes.
• Brand Loyalty: Loyal customers are less price-sensitive and more likely to accept price increases.  Think of a brand like Apple.

Word-of-Mouth Marketing

A strong brand identity will generate buzz and have customers spreading the word.  Customers can help by:

• Becoming Brand Advocates: Loyal customers can be brand advocates and recommend your business to friends and family.
• Social Media Sharing: A strong presence on social media allows customers to share your content and amplify your reach.
• Positive Online Reviews: Satisfied customers are more likely to leave positive reviews, influencing other potential buyers.

Brand Identity Positively Impacts Employee Morale

Having a strong brand identity can also positively impact the morale of employees by making them motivated and loyal to the business.

It Creates a Sense of Purpose and Belonging

Employees can have a sense of purpose in their work by:

• Having Shared Values: A strong brand identity clearly articulates its values and attracts employees who also have those values.
• Meaningful Work: Employees can find greater meaning when they understand how their work contributes to the brand mission.
• Team Cohesion: A shared sense of purpose enables a stronger team spirit and more collaboration.

Builds a Positive Work Environment

A strong brand identity translates to a more positive and engaging work environment.

• Pride in the Brand: Employees are proud to work for a company with a strong reputation and a clear vision.
• Positive Company Culture: A strong brand identity can help in a positive company culture.
• Reduced Employee Tunover: Employees are less likely to leave if they feel a part of the company and its mission.

Helps Attract and Recruit Talent

• Employee Branding: Having a strong brand identity helps you position your company as an attractive employer.
• Employee Value Proposition: Having a brand message that resonates, attracts candidates who are looking for what you have to offer.
• Competitive Advantage: You can have a competitive edge in the war for talent.

Examples of Brands with High Employee Morale Because of Brand Identity

• Google: Google is known for its strong company culture, employee perks, and focus on innovation, which contribute to high employee morale.
• Patagonia: Patagonia’s commitment to environmental sustainability and social responsibility resonates with its employees, creating a strong sense of purpose.
• Southwest Airlines: Southwest Airlines has a fun and engaging work environment, which translates to happy employees and excellent customer service.

Conclusion

This post has covered the elements of why a strong brand identity is important for the success of your business.  A well-crafted brand identity is more than a logo or color scheme, it forms the foundation for differentiation, customer recognition, loyalty, increased revenue, and employee morale.

So now go out and make a plan for the brand identity of your business.

References

• Andrade, Beatriz, Rodrigo Morais, and Edirlei Soares de Lima.  2024.  The Personality of Visual Elements: A Framework for the Development of Visual Identity Based on Brand Personality Dimensions.  International Journal of Visual Design 18 (1): 67-98.
• Casidy, Riza, Catherine Prentice, and Walter Wymer.  2019.  The effects of brand identity on brand performance in the service sector.  Journal of Strategic Marketing 27 (8): 651-665.
• He, Hongwei, Lloyd C. Harris, Weiyue Wang, and Kamran Haider.  2016.  Brand Identity and online self–customization usefulness perception.  Journal of Marketing Management 32 (13-14): 1308-1332.
• Jabber, Zenaat.  2014.  The Impact of Corporate Visual Identity on Brand Personality.  Ph.D dissertation, Brunel University in Andrade, et al 2024.
• Labrecque, Lauren I. and George E. Milne.  2012.  Exciting Red and Competent Blue: The Importance of Color in Marketing.  Journal of the Academy of Marketing Science 40: 711-727 in Andrade, et al 2024.
• Yavuz, Mehmet Cihan and Canan Madran.  2024.  From Local Gems to Global Breakthrough: Crafting Destination Brand by Building Sustainable Brand Identity.  Journal of Applied Economics & Business Research 14 (1): 1-27.