Nairobi — Inadequate branding is causing Kenyan SMEs a 60 percent revenue loss, a new report shows, highlighting the importance of positive publicity for firms.
This is contained in the latest Elite Mawu Agency 'Kenya Branding Report Card 2025,' which was conducted online between October and December 2024 and surveyed 1,000 respondents.
It included a blend of Kenyan consumers (30 percent) and representatives from Kenya's SME sector (70 percent) in fast-moving consumer goods, manufacturing, real estate, logistics, agriculture, and fintech in Nairobi, Kisumu, and Mombasa.
According to the data, poor branding not only affects customer identification and trust but also inhibits SMEs from distinguishing themselves from competitors, diminishing customer attraction and retention rates, and ultimately stifles sales and revenue growth.
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Key elements highlighted include the importance of a distinct logo, attractive color schemes, and other impactful visual elements that make brands memorable and capable of generating leads.
"When a brand is not well-established, potential customers may remain oblivious to its existence, resulting in significant missed sales opportunities," noted Esther Murugi, Founder and CEO of Elite Mawu Agency.
"A poorly crafted logo, inconsistent messaging, or negative online reviews can together create a detrimental image, deterring customers from engaging with the business."
The findings further elucidate that without a clear and coherent brand identity, SMEs find themselves unable to differentiate effectively in saturated markets.
This lack of differentiation often pushes companies into price-driven competition, where they may lack a competitive advantage.
Moreover, the report indicates a direct correlation between brand recognition and customer loyalty. Brands that fail to establish trust and recognition are more susceptible to higher customer churn rates.
"A weak brand severely limits the potential to develop impactful marketing strategies that connect with target audiences," Murugi added as the firm celebrates its 5th year anniversary.
"It is crucial for SMEs to clearly define their target market, unique selling propositions, and brand values, thereby cultivating a consistent and recognizable brand image."
