Businesses allocate 10% of their revenues to fund brand-building activities. An effective branding strategy can influence a consumer’s purchasing decision. “In ‘n’ Out” might be the best burger, according to chefs, but McDonald’s remains the most profitable hamburger chain in America.
McDonald’s success is due to its powerful branding machinery, which has resulted in the company having the highest brand value of any fast-food company, at $191 billion.
At the core of the branding machinery is the business logo, which is the visual representation of your brand. Don’t make the same mistake as a start-up that views a logo as an afterthought.
Just because a logo looks good doesn’t mean it’s ready to go. There’s more to logo design than aesthetics. An effective business logo that gets the job done combines Science and Art.
In this article, we’ll explain why a great logo can help chart a path to growth and success for your business.
5 Reasons Why You Need A Great Business Logo
The best business logos seem unassuming, unpretentious, and ordinary. Yet, there lies the brilliance in their design. The designs are simple, but the logos have become the most ubiquitous and easily recognizable brands worldwide.
And have stood the test of time.
McDonald’s, Starbucks, Nike, Apple, Coca-Cola, and Microsoft. You see these logos, and you feel comfortable patronizing the brands. They might not be the best in their respective industries, but you know what you’re getting.
Branding drives sales. You need a great business logo to get your branding strategy off to a fast start.
1. Create the Experience
You can wear Michael Jordan’s shoes, but you won’t play like him.
When Nike introduced Michael Jordan’s signature shoes, “Air Jordan,” in 1984, they didn’t look like the traditional basketball shoes fans were used to. The red and black colorway design defied the NBA’s policy that a player’s shoes must match the color of the team’s uniforms and his teammates’ shoes.
The shoes were ugly. Michael Jordan admitted to late-night host David Letterman that he found the Air Jordan 1 ugly. However, the shoes sold $126 million in their first year.
Fans didn’t mind wearing ugly Air Jordans as long as they could experience what it was like to be in Michael Jordan’s shoes.
The Jumpman logo, which featured the silhouette of Jordan soaring in the air with legs splayed and a ball held by an outstretched arm for one of his signature dunks, became iconic. It made people believe “Man can fly.” Air Jordans did not, but the logo drove sales and made Air Jordan a cultural phenomenon.
2. Tell a Story
Storytelling is one of the most powerful marketing tools for growing brands. A properly told story creates an “ahhh…” moment for the audience. They get it – with “It” being your message.
A good logo can tell a story with very few words. Sometimes, words aren’t needed. The creative use of visuals, such as graphics, colors, and space, can be enough to let the audience know what you’re about.
The Olympic logo is a good example. Five interconnected rings, each with a different color, clearly symbolize unity between the five regions of the world: the Americas, Europe, Australia, Africa, and Asia.
According to psychologists, your signature is indicative of your personality. The best representation of this study is the Disney logo, a stylized rendition of Walt Disney’s signature.
Mr. Disney’s signature is highly readable and characterized by wide loops and thick lines. There’s no second-guessing; the signature reads “Disney,” which imparts a feeling of being welcome, friendly, and happy.
The Disney logo has created memories for generations of people who grew up watching his movies and visiting the theme parks. When you see it, you’ll feel like a kid again.
A great logo can help build strong relationships, foster loyalty, and establish brand recall with your audience.
3. Distinguish Your Brand From the Competition
There could be hundreds of soft-serve ice cream shops in your city, but your brand is the only one that makes it from fresh milk and serves it in a butter cookie cone.
You know it. But how will the market for ice cream eaters find out about it?
As a start-up, you might be tight on funds. A logo will cost less than a 30-second commercial.
Once they see the graphic of milky white, smooth-looking soft-serve ice cream in a grainy cone with a smiling cow grazing in fresh green grass in the background, they’ll know what your brand is about.
They’ll think:
“Wow! Made from fresh milk instead of powder. And that cone doesn’t look like it’s waffle. It looks more crunchy and sugary with the dark brown edges. This is something different!”
If the owner of the soft-serve shop came up with a commercial, the video would contain close-up images of the unique selling points of his product: the ice cream and the butter cookie cone. The video would also feature snippets of a cow grazing to highlight the use of fresh milk and emphasize freshness.
A well-designed logo seamlessly incorporates these elements together to clearly articulate your brand’s message—its Unique Value Proposition (UVP). Thus, a logo can be more effective in establishing your brand than a 30-second video…
… and cheaper!
To be sure, hire the services of a professional web design company with experience in logo design. We have talented graphic designers and digital marketers onboard with the skills and experience to create a logo that will surely catch the attention and interest of your customers.
4. Encourages Brand Loyalty
People who love their brands become loyal customers.
They’re proud to be loyal customers and won’t hesitate to tell anyone why they love some brands more than others. With social media, loyal customers often share stories or post pictures of their favorite products.
Loyal customers will buy merchandise from their favorite brands, such as T-shirts, caps, mugs, umbrellas, notebooks, pens, mobile phone covers…, and any item that shows the logo front and center.
Think of Coca-Cola, Starbucks, Nike, Air Jordan, Marvel Comics, Adidas, the UFC, the Los Angeles Lakers, the New York Yankees, and Ben ‘n’ Jerry’s. The logo is a badge of honor, a status symbol, and a source of pride.
Imagine your logo posted being shared on social media. Your customers wearing your colors in public. It’s your customers helping your business grow. Your business offers great products and services.
You deserve a great logo!
5. Creates New Customers
A study by McKinsey revealed that 36% of consumers are willing to try a new or different product for the first time. Consumers want to discover products that offer better value regarding availability, convenience, quality, and price.
The key to designing a logo that wins over consumers is understanding your business’s what, why, how, and who.
- What is your business about?
- Why did you start this type of business?
- How will your product help customers?
The “who” refers to the values espoused by your business – the same core values you believe and abide by. The non-negotiable core values that guide your decision-making process.
A logo that effectively articulates the answers to these questions in its design can successfully establish an alignment with a consumer.
Let’s take, for example, the Walmart logo. Since Sam Walton opened his first Walmart, the logo used a variation of the Sans-Serif font style. The tagline “Save Money. Live Better” played up the values of saving money, living a simple life, and humility.
The same values were practiced by Sam Walton.
Customers who see the logo can associate Sam Walton with Walmart. Walton is a businessman who became a billionaire by living a frugal but practical lifestyle. Customers know that products sold at Walmart are cheap but also of good quality.
As Sam Walton said:
“Give ordinary folk the opportunity to buy the same things as rich folk.”
Today, Walmart is the world’s largest company in terms of revenue. It has survived the “Retail Apocalypse” and the global lockdown.
Conclusion
We’re not saying a logo will make your business the next Walmart. It took Sam Walton five years to turn Walmart into a self-sustaining profit center. However, having a well-designed business logo can entice customers to try your products.
That’s a good first step. The next steps are up to you.
If your business lacks a logo or if its current one is not helping it gain traction, contact us, and let’s get your brand moving along the right path.
And if you enjoyed this article, feel free to share it with your friends.
