How often do people see companies’ branding or adverts without being able to discern what it is they actually do?. To find out that Studio Graphene has commissioned an independent, nationally representative survey among more than 2,000 UK adults. It ran a little experiment for it: the participants were given a list of 10 company names and their logos, as well as a muddled-up list of 10 descriptions that corresponded to the companies – they had to match the description to the name and logo. Each of the UK businesses raised more than £3 million in Series A investment last year.
The research found:
- On average, only 21% of respondents were able to correctly identify what a company did based on its name and logo
- 40% successfully identified Medopad as a HealthTech company, making it the best performer
- Conversely, just 8% correctly guessed what Waldo do – an ecommerce platform for people to buy contact lenses
To delve further into just how important businesses’ branding and marketing are in influencing a consumer’s spending habits, Studio Graphene also discovered:
- Half (51%) of UK adults said they regularly see adverts in the media and struggle to understand what product or service is being advertised
- 62% avoid engaging with a company if it’s not immediately obvious what they do
- And 55% feel too many new businesses today opt for obscure names that do not relate to what they do
- 42% of people say that branding plays a role in their purchasing decisions
- And 67% go for well-known brands when making major purchases (cars, holidays, etc.)
With the average UK consumer exposed to dozens of advertisements every day, standing out from the competition has become a challenge for all businesses. However, many companies’ obscure branding and unclear marketing are driving away customers, new research has revealed.
Studio Graphene asked an independent, nationally representative sample of more than 2,000 UK respondents to correctly identify what the following 10 companies do based on their names and logos – Medopad, Quantexa, The Plum Guide, vTime, OLIO, Seatfrog, Lightful, Spectral Edge, Waldo, Lexoo. All of these are UK-based businesses that raised more than £3 million in Series A investment in 2018.
The survey found that on average only a fifth (21%) of consumers could match a business’ name and logo to its description. The best performer was Medopad – the HealthTech firm, aided by the inclusion of ‘med’ in its name, was correctly matched to its service offering by 40% of respondents. Conversely, a mere 8% recognised that Waldo was an online retailer of contact lenses. To avoid this situation, you should do everything you can to forge a good brand name. If you lack inspiration, try using software that can quickly generate many business names.
Studio Graphene then asked the sample about their general perceptions toward logos and branding, and how important they are when it comes to using a company’s product or service.
The research found that the majority of consumers are inundated with adverts they do not understand. Half (51%) said they regularly see adverts in the media and struggle to identify what product or service is being advertised. Moreover, 61% avoid engaging further with a company if it is not immediately obvious what they offer, while 55% feel too many new businesses today opt for obscure names that do not relate to their offering.
Studio Graphene’s study also found that 42% of people said branding plays an important role in their purchasing decisions. Furthermore, two thirds (67%) typically go for well-known brands when making an expensive purchase, such as a car or a holiday.
Ritam Gandhi, founder and director of Studio Graphene, commented: “Today’s research underlines two things: how important branding is within consumers’ financial decisions; and just how many businesses are failing to brand themselves effectively. Indeed, with the average person exposed to hundreds of advertisements each day – whether in a newspaper, on TV or via social media – confused branding can result in businesses losing potential customers.
“Whether you’re a startup or large enterprise, business leaders cannot overlook the importance of clear branding. A company must create a brand and market it in a way that is simple, memorable and relevant.”
Open Business Council offers resources, Trade Finance, business advice, SME Finance and a forum and directory for businesses! Improve your business and use the best digital, financial and funding tools to grow ROI – return on investment and ROA – return on attention!