A brand, beyond being described as a person’s or organization’s identity, is also a description of the relationship between an individual or organization and its customers.
It keeps up with the ever-changing market situation by adapting the relationship to the changing customer needs, redefining the relationship to a certain demographic of the market, and create new relationships to replace lost ones where they cannot be restored.
Brand perception is the sum of feelings that customers have about a brand.
It spans across multiple business processes through which some level of interaction takes place between the internal and external business stakeholders.
Perceptions are defined by the customers not the organization and they influence their decision whether to patronize a service or product provider.
They are usually the first point of reference for potential customers when making a buying decision from user feedback, online reviews, and ratings of previous customers.
The importance of having a positive brand perception is further highlighted below:
• Recognition and Loyalty: A satisfied customer would always remember how they were treated and then go the extra mile in sharing their experience and perceptions to refer the prospect to the organization.
48% of consumers say their first purchase or interaction is the best time to earn their loyalty and 60% of customers will refer friends and family to their favorite brands.
• Differentiation: Organizations get to benefit from a positive brand perception by adopting a service quality that stands them out in a crowded marketplace with many competitors.
59% of shoppers are said to prefer buying new products from brands they trust.
• Premium Pricing: The benefit of premium pricing is another advantage an organization enjoys from a positive brand perception.
Service and product pricing are justifiable and better acceptable by customers and statistics show that 91% of consumers would rather buy from an authentic brand.
It is therefore essential for organizations to develop strategies towards building a positive brand perception by analyzing their current brand perceptions, knowing their customers better, and acting on their knowledge.