When thinking about branding in the context of e-commerce, it's common to imagine that it's all about the product, the offer or the look of the online store, which is the main point of contact with consumers. However, this simplistic view ignores the true impact of the brand, which goes beyond immediate conversion and sales.
But why does someone choose one product over a competitor? Promotions, cashback, free shipping? Yes, these strategies are important and used successfully, but they are easy to replicate. With a plethora of similar products and services on the market, the difference often lies in brand identity.
Nowadays, almost everything can be copied: product features, design and even marketing strategies. What cannot be replicated is the essence of a brand. Building a clear identity, with defined values, creates identification, generates preference and builds lasting bonds with consumers.
Institutional branding: the pillars that connect the brand to the consumer
In e-commerce, branding goes beyond an attractive logo or design. It involves values, culture and personality, which are essential for generating identification with the public and boosting sales. There are five key factors that consumers take into account when choosing a brand:
Values and purposeidentification with the company's mission and principles, such as sustainability or social impact, is a great motivator.
Reputation and credibilityThe trust that a brand builds over time, based on ethics and transparency, creates a competitive advantage.
Social and environmental responsibilityengagement with sustainable practices or social causes increases perceived value.
Innovation and leadership: being a reference in innovation strengthens the perception of leadership in the sector.
Culture and relationshipsThe relationship with customers and partners creates an emotional connection that goes beyond the simple purchase.
Branding and revenue: the connection between identity and sales growth
Investing in branding is not just about image, but also a direct strategy to increase revenue and sales. A Nielsen study revealed that 59% of consumers prefer to buy new products from well-known brands, and 21% choose brands that convey trust. This shows how brand perception significantly influences purchasing decisions.
In addition, a Harvard Business Review study highlights that companies with strong branding are able to charge up to 13% more than their competitors, while maintaining high levels of loyalty. A strong brand creates a differentiator that goes beyond price or quality.
The role of institutional marketing in sales strategy
Institutional marketing goes beyond creating brand awareness - it strengthens the perception of value, directly impacting sales. Companies that invest in institutional branding tend to have more loyal customers who are willing to pay more for their products or services. In addition, branding allows for clear differentiation in saturated markets such as e-commerce.
We are a clear example of how institutional marketing can boost reputation and growth. The company has been expanding its operations and already has seven distribution centers in Brazil and abroad, as well as a team of 500 employees. This growth is directly linked to our commitment to innovation, sustainability and excellence in our relationships with clients and partners.
Impact of branding on customer retention and loyalty
As well as attracting new customers, branding is essential for retention and loyalty. A study by Bain & Company shows that a 5% increase in customer retention can generate up to 95% more profit. This means that well-executed branding ensures that customers buy again, creating a sustainable sales cycle.
Our commitment to solid values and our closeness to our clients ensure that the brand is remembered, even with so many options on the market. Around 70% of clients return for new projects, and the satisfaction rate is around 90%, proving the direct impact of branding on retention.
Conclusion: branding as an engine for growth
Institutional branding is one of the main factors in driving long-term revenue and sales. Research indicates that the ideal budget allocation is 60% for branding and 40% for activation actions. Branding involves sponsorships and promoting events linked to the brand, while activation focuses on short-term actions such as email marketing and promotions.
Therefore, branding is what creates an emotional connection with consumers, sustains a brand's reputation and allows it to stand out in saturated markets. The essence of the brand - its identity, values and purpose - can be the differentiator that drives sales and guarantees continued success.