How Important Is A ‘Logo’ For The Success Of The Company

Almost every company has one thing – a symbol, a sign. In short: a logo that is placed on the letterhead, on the website, on the company sign and in countless advertisements and other communication channels. Whether a logo is beautiful or ugly is up to the viewer.

However, one cannot argue about success or failure in this regard. It will not be those companies that generate the most sales that have the nicer logo, but those that use the power of their logo to address their customers and target groups in the best and most trusting manner. Because people are looking for orientation and trust, a logo can act as a value mediator.

The New Power Of The Brand

Being there is no longer enough today. The logo is often the first thing potential buyers see of a brand. A logo is more than a sign. It stands for values, expectations, and attitude. A logo can be understood as a source code that reflects the entire corporate and brand DNA. The logic of a logo is often based on social change processes or current trends. We are in buyer’s markets, not sellers’ markets.

The perception of a logo in society is immensely important and can make the difference between success and failure. That is why every year the logos of successful brands are carefully adapted to various trends and trends relevant to the reference group with absolute sovereignty.

Example: Years ago, the majority of the logos had a 3D look. In times of growing e-mobility, logos of brands such as BMW, VW and now also Nissan are significantly reduced, even minimalist in their presentation. Of course, the basic shapes and basic elements are retained. After all, you have invested many years of time and money to ensure that your own corporate symbol conveys certain values. But what are these values? The main thing is that a logo corresponds to the current zeitgeist – therefore it has to be continuously developed and adapted to the current environment.

The same happens with companies: there are always temporary cycles of upheaval in which organizations reorient or restructure themselves. Values ​​and ways of acting can also change, and the symbolism also changes accordingly.

In times of price and product equality, it is essential to stand out from the competition through the image of a brand and with targeted corporate communication. This also includes the figurative or word-figurative mark. What does the logo, the brand stand for? What values ​​is the brand and thus the logo filled or charged with? Just because a logo is round or square, coloured or black and white, it will not be more successful than the competition logo.

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An Important Investment

Experience shows that investing in a logo and its development pays off in many ways over the years and decades. Whether customer loyalty, new customer acquisition, displacement of competition: a logo is the first visible perception that a potential customer has of a company.

When we talk about market power, we must also talk about brand power. And since the logo is an elementary part: ask yourself how powerful your logo is. It is important to give the logo a soul, DNA and valuable attributes. It makes sense to check in advance what your target group is looking for and what they need in order to make a purchase decision.

This does not happen overnight, but over many years of brand maintenance, so that only one symbol is required so that the company is perceived positively or negatively by the target group within a market and the competition.

In the past, a logo on letterheads and a website were sufficient, today a lot more is needed. One could put it provocatively: It doesn’t matter what your logo looks like – what it stands for is much more important. What does your logo stand for? What does your company stand for? And is what defines you recognizable in your logo for customers and new customers at a glance? Remember: You can only get a first impression – and this is often the all-important one.

Dynamics And Change Influence Logo Development

A current example is the announced logo relaunch of Uncle Ben’s. In doing so, the company is responding to the newly ignited debate on racism after the death of George Floyd. Even if the brand has been part of families for generations, the example shows that due to social events, the company is now forced to change the logic and story of the brand or logo.

Good proof that we are in dominant buyers’ markets. Brands and companies are part of society, the potential for identification with a logo means vigilance and change. In the past few years, however, we have seen a kind of visual merging of logos in the auto industry.

If you looked at the logos of VW, BMW and Daimler in direct comparison just a few months ago, they seemed to follow a principle of similarity. Is that logical? Perhaps if you suspect that in the past these three brands were hardly able to generate unique selling points in a market or with a target group that you share.

This applies at least until new technological developments make it possible to distinguish between real Unique Selling Propositions (USPs). It remains to be seen how and when the named brands and thus their logos want to or have to differentiate themselves more clearly.

Of course, a logo should be perceived positively at first contact and viewing. Therefore, it is sometimes easier and advisable to use the “learned” forms. These can be saved and assigned more easily by the consumer. A good example is TUI’s newly developed logo – the logo in the form of a smiley. At a time when we were expressing emotions through emojis, this was a smart move.

Because the company immediately stands for happiness and happy travel. Nike has also been demonstrating it successfully for years and has placed its logo firmly in people’s minds. The Nike symbol stands for dynamism, speed and works without a company name.

In these cases, quality features that stand for the “positively learned” characters are automatically projected onto the company’s own logo, brand and company. The other direction is the answer to the following questions: What values ​​has the company given its brand in recent years and what added value has it promised its target group and its customers? Exactly this corporate and brand communication pays in the long term into the brand or into the strength and success of a logo.

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How Powerful Is Your Logo?

Strong logos are capable of demarcation and emotion and act in harmony with the market, target group and competition. Successful logos tell a story or immediately spark positive images in the viewer, are authentic – authenticity is the new honesty -,? Are unmistakably concise in form and use, are understandable and leave no questions unanswered,? Have a strong trust factor that creates loyal customers and offers added value and orientation.

The current ruling by the Federal Court of Justice on the subject of “Ritter Sport packaging” also makes it clear that “square” only “remains practically good” at Ritter Sport. Because a 3D brand like Ritter Sport offers real added value and not only represents an essential part of the associated brand DNA in the logo.

Logical Conclusion

Successful logos are also logical in their understanding. You are more than a sign. You are a promise! They are the symbol of an emotional brand DNA and create identities that are easily understood depending on the industry, market and competition.