5 Proven Branding Tips for SMEs to Increase Profit Turnover

Brand

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Branding is the key to business growth on any scale, from small-medium entreprises (SMEs) to large companies.

However, there are several mistakes that business people, especially SMEs, often make when branding.

For example, not treating existing customers well and being too generous in promotions and discounts actually have a negative effect on the brand image.

The following are some branding tips for SMEs to increase company turnover in 2024.

Here we go:

1. Find a specific target market gap

A niche is a specific target market that you want to pursue.

SMEs must be able to find a niche in the market, in the sense of being able to find a gap to attract people's attention outside of popular products.

To do this, there is a need for SMEs to look for areas where customer or consumer's demands has not been met and in fact, competition is not too high.

This is contrary to the general thinking of many people, who tend to look for the best-selling products on the market and flock to import these products, jumping into an already crowded market or red ocean.

A niche approach that avoids price wars by finding underserved segments, provides opportunities for innovation, and offers unique added value.

For example, health shoe products that have special soles can help overcome foot or back pain problems.

Also Read: 12 Ways to Ceate Your Own Interesting and Unique Business Brand

Because it doesn't have many competitors, it could be a blue ocean product.

Red ocean approach focuses on markets that are already saturated with intense competition, which is not recommended for SMEs.

Persuing a specific blue ocean niche will allow SMEs to offer products or services that are really needed by a particular people, and that that often results in better profit margins.

2. Have a "unique selling point" so you can compete with competitors.

If a small businesses want to be noticed by consumers amidst intense competition, they need to find a unique selling point (USP), something unique about the product or service that stands out and has value for consumers compared to other competitors.

With this USP, consumers have a reason why they should buy a product or service compared to buying a competitor's.

3. Optimize small things that can make customers loyal

Branding is not just about building awareness among potential new customers but also about how to retain existing ones.

There are several ways to increase engagement with existing customers so they feel at home.

First, in terms of service quality which makes customers feel comfortable and safe when buying products in online stores.

For example, consistently maintain a chat response rate of no more than 30 minutes.

Apart from that, you can also provide product guarantees for customer satisfaction.

So, customers can feel comfortable buying the product again and even recommending it to their relatives.

Second, offer discounts. Many believe that big discounts can provide higher sales exposure.

But from a branding perspective, offering larger discounts can damage the brand image because they mean the value of the goods being sold is considered lower.

Sometimes things like this are considered insignificant, even though they have quite an impact on the perception of the brand itself.

4. It's okay to use "influencers"

But influencer services to increase product awareness are still needed by online shop businesses in 2024.

You need keep in mind that your chosen influencer must have relevance to the brand's business.

For example, SMEs that sell or distribute vehicle parts and even have repair shop services can use influencers in the automotive sector.

So, the influencer's audience will be relevant to the products the brand has.

According to House of Markets data, business ROI from relevant influencer campaigns can reach 5.7 times.

However the chosen influencer must also have quality followers who are relevant to the content as well.

This can be measured from the high level of engagements on his social media activities when compared to his number of following.

Don't choose influencers who have lots of followers but low engagement levels.

This will make the branding we want to build less than optimal.

5. Adapt to developing trends

One thing that SMEs need to pay attention to when branding is following developing trends.

For example, when creating a brand related to healthy lifestyle, an entrepreneur must ensure that he keeps up with the trends regarding his niche and his niche relate to it.

That can help make consumers interested in starting to become aware and even consider buying products.

And it should be noted that by using the right channels such as livestreaming on e-commerce platforms, and others, there is possibility of attracting new audience who will likely turn to customers.

Conclusion

There are so many ways that small-business entreprises can make a huge profit turnover, but they require smartness, hardwork, and dedication.

SMEs can use built-in chatbots to help them with attending to new customers, and then using human-assistants to attend to exising ones.

Good branding will help SMEs to succeed in the long run. But poor branding and management is what makes 90% of SMEs fail.

We do hope you succeed.

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