Importance of Logos in Business

What comes to mind when you hear the company name, Nike? Chances are, the Nike Swoosh is the first thing that comes to mind. The Nike Swoosh logo has a fascinating backstory, as it started as a shoe stripe, as a way to differentiate its shoes from Adidas' shoes, which had three stripes. Later, the single Nike stripe became the company logo, and this logo has become the signature logo of Nike's entire brand of sports apparel. Good logos are critical for a business, as they establish the brand in a way that resonates with its customers.

Brand Recognition

A logo should be easily recognizable in large- and small-print. You want consumers to recognize your brand, whether it's embroidered on a t-shirt, on a billboard or in a digital ad on someone's phone. Your logo should be simple and should not compete with other company logos. You don't want to roll out an ad campaign with a big yellow "M" that consumers might possibly confuse with McDonald's, as logos are trademarked, and a logo that reminds consumers of a trademarked logo could land the newer company in legal hot water. Popular logos are recognized around the world, regardless of the language of the text surrounding it.

Reflects Your Business

One of the things that makes the Nike Swoosh so successful as a logo is that it reflects its business. The name Nike represents the Greek goddess of victory, and the swoosh reflects the speed and flight-like qualities that users might experience while wearing the shoes. Other brand logos clearly show what the company does, which helps consumers understand what you can do for them immediately. Swirl frozen yogurt has a little swirl of yogurt as its logo. This prevents consumer confusion. Most good logos have a reason for choosing the images used in the logo.

Consumer Loyalty

Consumers are loyal to great brands. Golfers adorn hats with the Titleist logo. Harley Davidson riders love anything and everything with the Harley Davidson logo. Apple logo users will place Apple stickers on computers, books, even cars. Good logos are something your target audience uses via other merchandising efforts. BMW is a car company, not an apparel company, yet loyal customers wear hats and shirts proudly demonstrating loyalty and pride for the brand. This is great social proof to attract others into becoming part of the club by buying your products.

Evoke Emotional Responses

A company can use the color schemes of logos to help develop an emotional tie to a product or brand. One company selling juice might use orange to evoke happy feelings about vacations in the tropics, where another company selling high-end watches could use black to keep with the formal feel of black-tie events. Green suggests cohesiveness and harmony, often with Mother Earth. Understanding how every component affects the perception the consumer has is important, down to the primary and secondary colors used in the logo.