DOES A LOGO TRULY HAVE AN IMPACT ON THE PERFORMANCE OF A BUSINESS?
Its very common to see businesses putting logos on almost everything that belongs to them. This can range from promotional materials, packaging, office interiors social media pages, etc.But let's reflect on this for a Minuit.
What does a logo actually do for a company? Does it have a real impact on the performance of a business?
To better analyse the importance of a logo we should first of all understand the different ways business have been organized through time. In the past (and even today) most businesses started as a sole proprietorship or a partnership, where the owner has some skill or product through which he / she can serve the local population with it. like a provision store ,for example, where everyone in the neighborhood purchase their groceries. In this case there very little or no competition in the area where the business is operating, everyone buys from that particular business because they are the only ones available to provide what they need.
Today the narrative has changed. With Globalization and the rise of the internet and e-commerce, even a woman selling fruit juice from her home is competing Globally with other businesses providing the same product. This very factor, has given customers a variety of options for any product they want.
Now, in this jungle of enterprises competing for the same customers, business owners are constantly looking for ways to make their products look and feel better than that of the competition. But making a product better without attaching a symbol to it, will make the product unidentifiable when he or she wants to buy the product a second time. That's how a logo comes into play.
A logo helps the customer to identify your product wherever he or she finds it, thereby enhancing customer loyalty. We all know that loyal customers is what makes a business thrive.
Also, a logo creates some kind of relationship between customers and brands - a symbol of trust. for example, i went to an electronic store to get a pair of headphones. there was a variety of headphone brands. they were not popular brands so i made my choice based on the packaging, features and price. i used the headphones for 2 weeks and it was awesome, one of the best i ever had. another time i went to a supermarket down town to buy some utilities, and i saw a Bluetooth speaker carrying the same logo, as that of the headphone i bought a few weeks back. immediately it picked my interest. The only thing that stopped me from buying it was that i had insufficient funds to get it, but i said to myself when i come here next time its to get it. what happened in this story is that the brand had already won me over to buy their Bluetooth speaker by using their logo to help me identify them (as the manufacturer of the awesome headphones iv been using). At this point the logo stood as a symbol of trust.
Being in a very competitive business environment without a logo is a serious mistake. This is because without a logo it will be difficult to identify your products in the market and build brand loyalty. unless you are doing business in a very small scale in a small locality where there's very little or no competition.