Brand Awareness' Impact on Sales
It's very hard to confirm the exact ROI of brand awareness, however, marketers know that brand awareness impacts a company's sales through many indirect ways. Brand awareness increases sales because most purchases are done subconsciously, increases brand loyalty, protects against the competition, increases sales to other businesses, and it breeds trust. These points and more are discussed in greater detail below.
Most Purchases are Done Subconsciously
- According to ISPO news, 90% of purchasing decisions are made subconsciously.
- A Harvard professor puts that number a bit higher, at 95%.
- Brand awareness lets customers feel connected with the brand. It changes perceptions and attitudes, subconscious attributes that drive brand choice and brand loyalty and in eventuality more purchases.
Brand Awareness Through Social Media Encourages Loyalty
- At least 78% of people in the United States have at least one social media profile.
- Social media leads to brand awareness because it enables engagement, promotes content, and promotes sharing. This is why according to a Sprout Social study, 80% of social media marketers say their biggest goal is to increase brand awareness.
- Seventy-one percent of consumers are more likely to purchase from a brand that they follow on social media.
- Social media helps in retaining customers and keeping them loyal. A 5% increase in customer retention can boost profit by 25% to 95%, according to a Bain and Company study.
Brand Awareness Protects Against Competition
- Even though it's hard to calculate the ROI of brand awareness, branding plays an important role in how companies are valued, especially in highly competitive sectors like tech.
- Brand awareness helps to set a product or company aside from the rest even though there are similar products offered by larger companies.
- An example of this is Slack, which even though it faces stiff competition from larger companies like Microsoft, Google, and Facebook, has brand awareness due to its perception of being a hot hew innovative tool for startups.
B2B Buyers Depend on Brand Awareness More Than Consumers
- Brand awareness drives consumers choice by a factor of 27%. However, consumer choice is driven mostly by features (34%) and price (39%).
- For B2B buyers, however, it is inverted as purchase decisions are mostly driven by brand (39%) followed by price (27%).
- Even though this study looked at computer and tablet purchases, it applies to most industries as businesses prefer brand familiarity to prevent possible penalties and high costs of switching and trying a new brand.
- Also, the B2B sales process takes a lot longer than B2C as it involves multiple decision-makers.
- This is why many B2B-oriented companies are turning from content marketing to brand awareness.
Brand Awareness Breeds Trust
- Familiarity with a brand and its processes increases trust in the brand. The more prospects are aware of the brand's presence, mission, and values, trust is increased.
- Ninety-three percent of people will recommend a brand's product or service to others if they trust it.
- Eighty percent of people will be more loyal to the brand they trust, and 83% of consumers will look towards the brand they trust first for new products and services.
- According to a study, testimonials and recommendations can increase conversions on sales pages by up to 34%.