Finding and getting sales is critical in the early stages of a business. But what happens when you start running into dead ends and sales prospects don't seem interested in buying? Do prospects not seem to understand your company's value proposition?
As newer companies yearn to reach that next level of growth, far too often they don't realize that they have not done a sufficient job building a strong, easily understandable company identity that can help prospects clearly identify how that company can help them accomplish their goals.
According to Kasper Ulf Nielsen, an executive partner of the Reputation Institute, "People's willingness to buy, recommend, work for and invest in a company is driven 60% by their perceptions of the company, and only 40% by their perceptions of that company's products."
Perception of a company is shaped by two interrelated factors: its brand and its reputation. A brand is made and owned by a company. Reputation is not.
A brand is a company's identity, values, experience, and attributes that explain how it meets the needs of its target customers. It also explains the company's values and the approach it takes to fulfilling those needs through the company's products, services, and way of doing business. A company's brand is created and managed through effective corporate communications and marketing.
A company’s reputation can significantly affect the achievement of its business goals. Reputation encompasses views from influencers and stakeholders in society about that company. Those influencers' views, whether positive or negative, are derived from their direct experience of the company, what others say about it, and what the company says or how it behaves in public.
Without an effective brand, a company's potential customers won't understand how it can meet their needs. Consequently, their neutral or negative opinions about that company will negatively impact that company's reputation in the marketplace, which could impact that company's long-term financial viability.
A well-defined brand is critical for a business to grow and to connect successfully with customers who want to purchase its products and services.