Judging by the stats, you’d assume a logo is a no-go for SMEs. At least 15% of small and medium-sized companies don’t bother investing in a universal symbol. Of those that do, more than 50% designed their own without help from a professional. And, nearly one-quarter of firms consider changing their logo on a regular basis.
The numbers don’t make for good reading, which is one reason SMEs don’t pay for one in the first place. Plus, there’s the assumption that a brand sign won’t make too much difference anyway, not against the likes of Nike and Apple.
Do logos work or are their influence overstated? Here are the pros and cons.
Pro: Customer Perception
Because very few businesses have them, the one major benefit of a logo is to make the company seem professional. Customers see it and think “oh, this organization must be legitimate if it has a brand symbol.” Firestartercreative.co.uk/ agrees. After all, only the biggest corporations on the planet have a widely recognizable trademark. SMEs can easily exploit this way of thinking by investing in one and piggybacking off of the others’ reputation. It doesn’t matter if the business isn’t overly professional or huge because the perception is all that counts.
Con: Alternative Effectiveness
Although a logo is effective, there are alternatives available which are as effective, if not more so. Aromatechsystems.com/ is a website which uses scenting to help businesses increase sales and profits. The way it works is simple: you choose a smell that evokes positive feelings. Because A) the emotion is innate, it can’t be changed and the impact is inevitable, and B) it’s subtle. No one thinks “this company is using scents to get into my wallet.” Instead, the majority of shoppers don’t analyze it whatsoever and carry on browsing, blissfully unaware they’re likely to make a purchase based on their nose.
Pro: Cost
For what they offer, there is no doubt they are cost effective. Usually, a logo will cost a company $15-$30 at the most, or a top end one might be around the $50 mark. Still, that’s a drop in the ocean if it helps raise awareness of the brand and increase traffic and conversions. Scenting technology is in the hundreds of dollars ballpark. Savvy entrepreneurs don’t pay a penny as they trade services tit for tat. All it costs is the labor, which you would pay for regardless. Always spend a little extra for a quality logo rather than a low budget one.
Con: Loneliness
On their own, brand trademarks won’t carve out a lane for the startup and make it a ton of money. To do that, you need to stand out from the crowd with your customer service, as well as add value and offer a solution to a problem. See this bennisinc.com/ post for inspiration. On top of that, it’s important to target the right base and be efficient with your resources. A logo can help, yet it can’t do any of the latter from scratch. So, some business owners think it’s better to focus on the foundations rather than invest in a symbol.
Logos have their drawbacks, but for the cost and potential benefits, they are well worth the money. Do you agree? Join in the conversation by leaving a comment below.