How Logos Can Increase Brand Recognition and Loyalty for E-commerce Businesses

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With the rise of technology, our lives have been increasingly digitized. Shopping is no exception. According to studies, the e-commerce industry is estimated to make a whopping total of $6.3 trillion in sales in 2023. If you don’t jump on the e-commerce bandwagon now, you’re losing a lot of potential money.

However, there are already an estimated 9.1 million online retailers in the world. With this massive amount of businesses all competing for attention, it can be challenging to establish a loyal customer base. The solution? A strong branding, more specifically, a great logo design. 

In this article, we’ll take a deeper look at the importance of your logo and how it can help you increase brand recognition and loyalty for your e-commerce business, and ultimately drive sales.

Let’s get started. 

How Logos Can Increase Brand Recognition

A strong brand recognition means that your business is at the top of your customer’s minds. When customers are given a choice between two similar products, the product with stronger branding will come out on top. An example is Coca-Cola and Pepsi. Coca-Cola dominates the market shares, but when it comes to blind taste tests, it’s shown that customers actually prefer Pepsi. This shows just how powerful branding can be.

Brand recognition also means higher perceived quality — ever bought an expensive product from a specific brand just because they are familiar to you, even though a more affordable but less popular alternative exists? 

As you can see, brand recognition is crucial if you want to grow your business and get more sales. But how can you build it? The answer is through your logo design. 

Think about household name brands like Apple, McDonalds, Nike, and Coca-Cola. One thing they all have in common is their distinctive logos. According to a study, three-year-olds can recognize the McDonald’s logo before they can even remember their own name. Indeed, your logo is a very powerful tool in building brand recognition.

75% of people recognize a brand from their logo. It’s your business’s main identifier, even more so than your brand name or products. Your logo can significantly influence your customer’s purchase decisions as well, with 73% of customers saying that they are more likely to trust and buy from a brand they recognize. 

If you want to build a successful e-commerce business, you’ll need to prioritize your logo design. It’s even more crucial for new businesses, as they need to do all it takes to establish themselves as legitimate and credible. If you don’t have a logo, you’ll risk looking unprofessional and worse, a scam. A well-designed logo can also help you rise above other competitors since you’ll have a stronger and more distinctive impression.

How Logos Can Increase Brand Loyalty

According to Harvard Business Review, companies with top scores on brand loyalty and customer loyalty grow revenue 2.5x faster than their peers as well as deliver 2x-5x more returns within 10 years. 

This is no surprise. Loyal customers provide significant revenue to a business. Based on surveys, existing customers purchase 90% more frequently than new customers. You also don’t need to spend so much money just to acquire new customers. 

Brand loyalty is incredibly important in ensuring the profitability and growth of your business. But how can your logo help in building that?

A well-designed logo, combined with quality products and a positive buying experience, can turn your first-time customers into loyal advocates. How? When customers see your logo, they instantly associate it with their previous positive experience. They would then prefer to buy from you since they already know that they can trust your brand.

Your logo is also a symbol of quality. Customers don’t really like to risk their hard-earned money. In fact, 59% of shoppers prefer buying new products from brands that they are already familiar with. When customers see your logo, they will buy from you again since they already know that your products are high-quality and that their money won’t be wasted. 

How To Design A Great Logo For Your E-Commerce Business

Now that you know the importance of your logo design, it’s time to delve into creating it. Here are some best practices to help you craft an effective and well-designed logo:

1. Define your brand identity

Your logo is the visual representation of your business. It’s used to convey your values, message, and your unique selling point. What words best describe your business? Who are your target audience? How do you want your customers to perceive you? Is there a specific niche that you are targeting? 

Your brand identity should guide your design. For example, a luxury brand that aims for minimalist and chic branding will benefit from using a simple wordmark logo. While a children’s toy store can use a colorful mascot to appeal to their younger audience. 

2. Consider logo variations

Your logo won’t just appear on your e-commerce website —  it will also be displayed on your packaging, product label, social media pages, business cards, posters, flyers, and other marketing materials. Different materials mean different size requirements. How can you ensure that your logo will look great whether it’s resized to fit a small sticker or blown up for a tarpaulin? 

The answer is to create logo variations. It’s the process of rearranging your main logo design so it works in different placements. You can create a horizontal version, vertical version, text-only, icon-only, or color variations. This way, you’ll have a flexible design that can work in different materials, while still remaining consistent with your branding.  

3. Keep it simple

It’s easy to get excited and add tons of details to your logo. The more the merrier, right? But that’s not actually true. If you have multiple colors, fancy icons, a complex layout, plus lengthy text, your customers will have trouble remembering your logo. 

It’s best to keep your design simple. Minimalist designs tend to work well since it’s easily recognizable due to its simple and clean look. Some famous examples are the logos of Gucci, Chanel, Adidas, and H&M.  

4. Don’t design for trends

The secret of your logo withstanding the test of time is to keep your design classic and timeless. Don’t just simply follow trends or make pop culture references that will make your design outdated in the future. 

This also saves you lots of time and resources in the future as you don’t need to spend money redesigning your logo. Plus, an unchanged design is helpful in building brand recognition. Think about it. If you have to redesign your logo every year to keep up with the trends, no one has a specific image of you that can be kept in their mind. 

Conclusion

The importance of branding and logos cannot be underestimated in the world of e-commerce. They are not just a visual embellishment — they are in fact a strategic tool that can be used to improve your brand recognition and brand loyalty, two important factors in growing your customer base and ultimately having a thriving business.