The Biggest Mistakes Businesses Make with Their Brand

Here’s a humbling statistic: 90% of startups fail, and 42% cite lack of market differentiation as a primary cause (Source: CB Insights). And what determines market differentiation? Ahem, your brand.

With close to half of failed companies noting that part of their brand was to blame, let’s explore brand pitfalls that are avoidable—and thus can help catapult a business to success.

1. Lack of a Clear Brand Strategy

Many businesses jump straight into designing logos or crafting taglines without defining their brand strategy first. Without a clear purpose, promise, and positioning, even the most visually stunning brand will lack the positioning it needs in its market to stand out to consumers and differentiate from the competition.

Solution: Start with the fundamentals. Define your brand’s purpose, promise, pillars, and persona. Use these to guide every decision, from messaging to customer support to products and services. This will help you carve out an “ownable” space in your market.

2. Trying to Be Everything to Everyone

A brand that appeals to everyone ultimately connects with no one. This one is tough to digest because it feels natural to cast the widest net and create mass appeal. But unfortunately, it has the opposite effect. Businesses often dilute their message in an effort to appeal to the masses, which can lead to a lack of differentiation and authenticity. Research by Sprout Social reveals that 64% of consumers want brands to connect with them based on shared values—which means you have to pick your lane and commit to it to truly resonate with your audience.

Solution: Focus on your ideal audience. Understand their needs, values, and aspirations, and use your brand strategy to outline how you will appeal directly to them.

3. Defining Your Brand Purpose:

Don’t know what you stand for? Or what you’re here to do? And for whom? It’s time to define that. Deloitte reports that purpose-driven brands outperform their peers by 120% in some financial metrics.

Solution: Use your brand strategy to develop your brand purpose. This is the key elements that will create that connection with your consumers and turn them into loyal advocates. And what does that equal? Higher CLV and marketing ROI.

4. Inconsistency Across Touch Points

A brand’s power lies in its consistency. When businesses fail to align their voice, visuals, and messaging across platforms, it creates confusion and weakens trust. A McKinsey report found that consistent customer experiences can improve customer satisfaction by 20% and boost revenue by up to 15%.

Solution: Develop brand guidelines that define how you “speak,” how you “look,” and what you choose to communicate. Regularly audit your brand’s presence to ensure consistency across all channels.

5. Ignoring the Emotional Connection

As much as we want to believe we are logical beings, humans—and therefore consumers—are emotional. Therefore, we make our purchase decisions based on how we feel. Scientific research supports this: a study published in the Journal of Consumer Research found that emotional responses to ads are more influential on a consumer's intent to buy than the ad's content itself. Consumers don’t just buy products; they buy the emotions and values a brand represents. Brands that focus solely on functional benefits miss the opportunity to forge deeper connections. And emotions pay in spades. Studies show that 70% of emotionally engaged consumers spend up to twice as much on brands they feel connected to.

Solution: Build storytelling into your brand. Highlight the “why” behind your business and how it aligns with your audience’s values.

6. Failing to Adapt and Evolve

Markets change, and so do customer preferences. Brands that fail to adapt risk becoming irrelevant. However, knee-jerk changes without strategy can also alienate loyal customers. And if that doesn’t convince you, perhaps this will: Harvard Business Review reports that companies that adapt their brands to market changes are 36% more likely to outperform their competition.

Solution: Regularly revisit your brand strategy to ensure it’s aligned with market trends and audience needs. Approach updates with intention, and communicate changes transparently.

7. Overlooking Internal Alignment

Your team is the first ambassador of your brand. When employees aren’t aligned with your brand’s purpose and values, it can lead to inconsistent customer experiences. Gallup research shows that highly engaged teams lead to a 21% increase in profitability.

Solution: Invest in internal branding training. Ensure your team understands and embodies your brand’s mission, vision, and values. Every team member should be able to recite your brand house and know how it impacts your work.

8. Neglecting Data and Feedback

Branding decisions based on assumptions rather than data can lead to missteps. Similarly, ignoring customer feedback can result in a brand that’s out of touch. Brands that actively use customer feedback see a 10% higher customer retention rate, according to HubSpot.

Solution: Use customer insights, market research, and analytics to guide your branding efforts. Actively seek and respond to feedback.

9. Underestimating the Power of Simplicity

Overcomplicating your brand with too many messages, visuals, or offerings can dilute its impact. Simplicity often carries the most clarity and power. Companies that get this use their brand strategy to hone in on that one “thing” they want to be known for and that “one idea” they want their consumers to have about them.

Solution: Distill your brand’s essence into a clear, concise narrative. Focus on what matters most to your audience.

10. Not Measuring Brand Performance

Without metrics, it’s impossible to gauge whether your brand efforts are paying off. Many businesses overlook brand performance in favor of short-term sales metrics.

Solution: Develop KPIs for your brand, such as awareness, perception, and loyalty. Regularly evaluate these metrics to inform your strategy.

The Takeaway

Your brand is more than a logo or a tagline—it’s the story you tell, the values you uphold, and the promise you deliver to your audience. By avoiding these common mistakes, you can build a brand that not only stands out but also drives meaningful connections and lasting success.

Want to aviod these pitfalls by building a winning brand strategy? Join our online, on-demand Brand Strategy Workshop and get started today!