Granted branding and identity have a few similarities but they also have certain differences, which set them apart. In short, brand and identity are not the same.
Understanding the difference between these two terms is vital for your business because it will help you become specific when you spread the word about your business; your message will be specific and you will be able to convey the values of your business to your customers with ease.
Identity shows how you run the business. This means that identity is all about the internal factors that influence the running and the growth of the business. The ethics that you follow and the way you organize your business are examples of the internal factors. Through the identity of your company, your customer or any third person will be able to distinguish your company from your competitors. Logos generally represent identity.
Branding is all about what people think about your business. It is about the value that your company has in the eyes of the customers. By changing the identity you can hope to change the branding of your company for the better because internal factors in a business influence the external factors. However, a change of identity may work against you, too. If your customers already trust you and your branding is strong, changing the logo may cause you to lose that trust.
Therefore, before going for any changes you should evaluate things and learn what customers feel about your company. If you see the need to change the logo or the identity you have to make sure that you also improve the quality of your offerings. Simply changing the imagery will not do you any good.
A point to note here is that things could go drastically wrong in case you try fixing something that is fine. Fix only your weak points and don’t try to mess with the strong points of your offerings.
Once you are clear about the difference between branding and identity you will be able to understand your company needs and your customers. That will help you make any required changes for the growth of your company.