Having a strong brand is important to any company. A brand is not just about the logo or the products. Yes, it includes them, but it is a lot more than that. Branding is about the company’s philosophy and the experience it provides for its customers.
A company’s branding strategy is a guide to how and what they communicate to their customers. Clever branding represents the company’s distinctive qualities and helps them to stand out.
In this article, we have collated statistics on branding in Canada. These statistics reveal factors that shape a brand, why branding matters and what customers think about branding.
Branding Statistics for Canadians
- Trust in a company’s branding is important to almost half of consumers.
- 88% of consumers in Canada say authenticity is a key factor when choosing which companies they like.
- 71% of consumers say consistency is a key factor in choosing and staying with a brand.
- 2/3 of consumers say transparency is important to them.
- 73% of consumers say good customer service is important when choosing a brand.
- Main reason Canadians abandon a brand is poor quality products.
- Using signature colours can increase brand recognition by up to 80%.
- 86% of job seekers read the company’s reviews and check their social media before applying
- 53% of companies in North America feel they have the right tools to brand their business successfully.
- 73% of small Canadian business owners monitor their branding consistently.
People form an impression about a brand in milliseconds
Most of us have heard the saying that we should not judge a book by its cover. Yet we do it all the time. It only takes about 0.05 seconds (50 milliseconds) to form an opinion about a brand. That is an incredibly short time to make a first, positive impression on a consumer.
Right branding is the key to making a favourable impression during those crucial 50 milliseconds.
Almost half of consumers say they buy more from brands they can trust
Today’s consumers care about more than just the product. Consumers are likely to buy more from brands that they feel they can trust, with 46% stating trust as a key factor when choosing a brand. A brand that can build trust in the consumers is likely to build long-lasting relationships and loyalty in their customers.
Consumers want honesty and transparency
88% of Canadian consumers say a brand’s authenticity is important when deciding which brands they like. They want companies to be honest when presenting themselves and carrying out their business.
In addition, 66% of consumers are attracted to brands that are transparent with how they treat their employees, where they get their materials from and what drives the company besides profits.
With the help of social media and the internet, it is easier than ever for people to find everything they want to know about a brand. Being honest and transparent will help companies to deliver a consistent message and create an emotional connection with consumers.
Brand consistency is important to consumers
Consumers are more likely to stick with brands that have consistent values and messaging. When a brand is consistent in the way it presents itself, revenue can increase by up to 33%. Keeping branding consistent also makes it easier for the customers to remember it. In today’s competitive marketplace, companies cannot afford to be forgettable.
Canadian brand consistency statistics show that 71% of consumers value consistency as one of the key factors when choosing and staying with a brand. Successful and consistent branding helps consumers know what to expect when they see a product with a specific logo.
Consumers are increasingly looking for brands that are socially responsible and take a stand on social or political issues. 64% of consumers say they would choose a brand based on its values.
However, companies need to be careful and only support causes they truly believe in. Brands that support too many causes can easily be perceived as faking it in order to attract more customers. Consumers also expect brands to stand behind their views and follow up on promises publicly.
Strong customer service
We are living in an era where more consumers will check reviews before making their first purchase from a new or even existing brands. With 73% of consumers stating that good customer experience is key when deciding where to purchase from, bad reviews on customer service can send potential customers elsewhere.
Customer service is about convenience, friendliness of staff, and the ease of returning items if necessary. Brands that understand the customers’ buying preferences and their needs are more likely to win and keep customers.
Almost four out of five consumers will buy from brands that share their values
The purpose of branding is to help customers to decide, and brands can do this by understanding what is important to their target audience. 77% of consumers are more likely to buy from brands that share the same values.
When brands can show they genuinely care about specific issues and present this clearly to their audience, they can create a bond with their customers. It also helps to humanize the brand, which is important to today’s consumers. Again, they want to see brands focus on human values rather than just profits.
We touched upon the importance of reviews when discussing the importance of customer service. 79% of consumers make their purchasing decisions based on user-generated content and reviews.
Consumers are more likely to rely on content and reviews posted by their peers rather than celebrities and influencers. 90% of customers think content from influencers and celebrities is less authentic and only 9% say they are persuaded to buy from a brand because of this content.
Reasons Canadian stop using brands
According to Statista, the main reason Canadians give for stopping to buy a particular brand is a decrease in the quality of their products or services (56%). The next biggest reasons were negative reviews and poor or unresponsive customer service, with 35% and 33% respectively.
Negative impact on the environment is also a reason for many consumers, at 25% and 24% of Canadians say they would stop buying from a brand if they disagreed with their values.
Colors impact how people perceive a brand
Colors say a lot about a brand, so it is important to consider them carefully when branding and then stick with the colour scheme. Using a signature colour or a colour combination can increase brand recognition by up to 80%. Just think about the colours we associate with companies such as McDonald’s or Coca Cola. Most people around the globe can tell you what they are.
According to Ignyte, brand colour psychology studies how colour affects the way we perceive a brand. This is because colours influence our emotions, which play a major role in our decision making as consumers.
Understanding brand colour psychology is a powerful too when designing the brand for a company. According to an UpCity survey, the most popular colour in both Canada and the United States is blue followed by red.
Canadians are familiar with Canadian products
67% of Canadians say they are familiar with Canadian products, with a further 16% saying they are very aware of Canadian brands. This compares favourably to other nations. For example, in Japan only 47% of consumers were aware of Japanese products and in Germany, the figure was only 38%.
A company’s brand affects their recruitment success
A company’s brand affects not only how many customers they can attract but also how well they can attract new employees. 86% of job seekers say they research company reviews and ratings before applying for a job.
A company that has a negative reputation is less likely to attract new employees, with 86% of women and 67& of men saying they would not join a company that had bad reviews. Millennials, at 68%, are the most likely to use social media channels to evaluate the employer’s brand before applying. 54% of generations Xers and 48% of baby boomers will do the same.
How businesses feel about branding
In a survey by UpCity, 53% of businesses said they feel confident about having the right tools to enhance their brand. The remaining 47% felt they need to identify the tools and to take additional measures to improve their branding.
While large companies can employ a fully functional marketing team, branding presents a bigger challenge for smaller companies. According to the UpCity survey, small business owners are looking to expand their own expertise to better tackle branding challenges.
50% of the companies that responded to the survey handled all their branding projects in house while 28% outsourced to a third-party. The remaining companies worked with outside support, for examples with consultants, whilst still keeping the branding in-house and developing their own expertise.
Two-fifths of new businesses plan to create formal branding in 2022
38% of new businesses (in operation for less than a year), plan to have their formal branding guidelines in place by the end of 2022. Out of the companies that took part in the UpCity survey, 55% had already formalized their written or verbal branding guidelines and 66% of those who already had formal guidelines in place said they enforce them regularly.
Only 19% of the companies said they didn’t have a plan to create formal branding guidelines in the near future.
Over half of North-American businesses have changed branding strategy following the pandemic
The Covid-19 pandemic has changed consumer trends, and 51% of companies in Canada and the United States have responded by changing their branding strategies. 32% of companies have not changed their branding strategy and 18% are in the process of evaluation or revamping their branding strategy.
Rebranding can include anything from changing the colour scheme to redesigning the logo and message the company wants to send to the consumers.
One-fifth of Canadian companies have revised their target audience types
Consumers responded to the pandemic by changing their purchasing patterns. This has led 20% of Canadian companies to focus on targeting new audience types when rebranding following the pandemic.
17% of Canadian companies focused on the platforms they use, including their website and social media, while 16% focused on logo design and other visuals. 15% revamped the brand’s mission statement, 14% focused on products or services offered, and 12% changed the slogan or catch phrase. The remaining 7% had taken other steps to change their branding.
Regionally, the central provinces were most likely to focus on audience types (24%), provinces on the west coast and the territories focused on the platforms they use (20% and 18% respectively), Atlantic provinces on logo designs (18%), and Prairie provinces on slogans (19%).
The budget companies have available for branding varies, depending on the size of the company. According to UpCity, 71% of companies with an annual revenue of less than half a million US dollars have a monthly branding budget between $100 and $500. For large business with a revenue of over $3 million, the budget is $500-$1,000 per month.
Because smaller companies are more likely to use free DIY tools, the amount spent on branding is likely to reflect time spent on branding rather than paying for products and services.
Almost ¾ of small business owners in Canada regularly monitor their branding statistics
Around 52% of Canadian small business owners have incorporated digital elements into their company’s branding strategy and 73% of them monitor their branding statistics consistently.
45% of the small businesses report that word-of-mouth marketing is still effective and 60% rely on their employees to communicate the brand’s value to their customers.
Companies need to consider their branding carefully, from the logo and slogan to customer service and feedback. Unsuccessful branding will not only fail to attract new customers, but is likely to send existing customers looking elsewhere.
When choosing brands, Canadians value consistency, transparency and good customer service, while negative reviews are likely to put them off. A bad reputation can also put off potential employees.
Most Canadian companies feel that they have the right tools to brand their company and many have revised their branding following the pandemic.
Frequently Asked Questions
Are Canadian companies confident with branding?
Not all companies feel confident with branding. 53% of companies say they have the right skills and tools to brand their business successfully.
What are the main factors that influence Canadians when choosing where to buy products and services?
For Canadian consumers, a brand’s authenticity is a key factor. 88% of consumers in Canada say they are more likely to buy from companies that are authentic.
What are the main reasons for Canadians to stop buying from a company?
The main reason, at 56%, is a decrease in the quality of products or services, followed by negative reviews and poor or unresponsive customer service, with 35% and 33% respectively.
Is branding important to attract customers?
Yes, it is. 71% of Canadian consumers say they are likely to choose and stay with companies that are consistent in their branding.
Is branding important when recruiting?
Having a positive brand image is important when looking for new employees with 88% of Canadian job seekers reading the company’s reviews and checking their social media before applying.