News from December 2009
December 29, 2009
“I don’t believe in this branding crap…vision, mission, values…it’s all fluff.”
We’ve heard that comment more than we’d like; and for those that feel that way they are absolutely right. If they don’t believe in their brand and in the promise their brand is to deliver, then why would their employees? Why would their customers?
On the other hand, if you agree that a brand is a relationship that creates and secures future earnings by growing customer preference and loyalty in the present, then wouldn’t you agree that it is critically important to understand what practices assist in the process?
Yes it is true that brand is an intangible asset, and as such it’s perceived to be more difficult to gauge ROI, however, if the ultimate goal is to engage happy customers and develop ongoing business, brand is actually quite easy to measure when you think about it…if revenue isn’t trending upward then you are probably doing a shitty job at effectively communicating and delivering the value of your brand.
What is it about today’s most effective brands that puts them so far above their competition?
Is there something we can learn and implement in our businesses that will enable us to set ourselves apart from our competition?
Digging deep in the Urban Jungle vaults, we found 7 key practices that are employed by leading brands. In doing so they are able to drive considerable ROI from their branding investment.
1. They continuously meet and often exceed customer expectations.
Highly effective brands deliver value and they provide high quality products or services that are designed with the customer in mind (imagine that!). Their ultimate goal is to make their customers’ lives easier and more enjoyable. Ideally, the brand fulfills a previously unmet need and that requires focus and investment in innovation. Apple and RIM are adherents to this practice. Both are relentlessly focused on putting the next great tool in the hands of their customers.
2. They rigorously remain relevant.
Highly effective brands ensure their ongoing relevance within their defined audiences. This involves rigorous segmentation to understand what are the most financially attractive segments and who is apt to be a brand evangelist and spread the word. This requires the brand to tailor its message to these segments with a compelling “value proposition.” Therefore execution is key and messaging must be more creative in order to cut through the current communication clutter.
3. They price impeccably.
Highly effective brands are able to price their products/services in a way that captures their customers’ attention and their perception of value. Of course, companies invest in brand in order to achieve a premium over similar offers and that remains a key objective. In order to accomplish this, leading brands make a direct link between price and the intangible benefits of communicating exclusivity in order to justify the premium.
BMW is a tremendous example of effective brand pricing. The brand is linked to “performance” and as a result, loyal BMW customers perceive differential value versus competing offers.
4. They are flexible.
Current practice involves how to approach brand consistency. Traditionally it is thought that a brand must be 100% consistent in communication and execution in order to achieve broad recognition. We disagree. Highly effective brands are more flexible in their communications approach than their competitors. At Urban Jungle we like to refer to this as the “70/30 Rule” whereby the brand is consistent in large part but allows for customization to address language, culture, buying behaviour, and communication channels.
Ten years ago every single McDonald’s restaurant would largely have had the same retail design. Now, there is much more flexibility in format. As an example, in Paris the locations are more café-like with a wide coffee menu and chairs that are not bolted to the floor. In Tokyo, the menu includes shrimp burgers.
5. They are extremely proactive.
It may sound cliche but the most effective brands never rest, nor do they allow the market or the competition to define who they are, what they believe, and what makes them consistently
unique. Instead they employ best practices to ensure their ongoing leadership.
6. They have accurate self perception.
Highly effective brands ensure that all employees, prior to making any claims in the market, understand the brand promise. It is, after all, the employee’s responsibility to deliver on the promise. In many average to less than average companies employees are the last to know, or learn about their own brand strategy through external advertising at the same time as prospective customers.
Progressive companies on the other hand use brand as their central organizing principle in order to guide employee decision and action, providing rules about what is “on-brand” and what is “off-brand.” These companies review employee performance against the brand strategy and values tying results to compensation and other rewards.
7. They manage brand as a long-term asset.
Highly effective brands continuously measure the drivers of brand value and make management decisions based on performance within those metrics. They clearly recognize that brands are not merely logos or tag lines or short-term advertising campaigns, rather they are fundamental drivers of the company’s economic performance. Though employed by significant global players, these practices are applicable to all brands regardless of size and reach and can help management unlock further potential for mind-, market-, and wallet-share.
December 15, 2009
I hate seeing people waste their time and money. The easiest way to do this is by moving forward with a rebranding project when you aren’t ready.
Here are five reasons that simply aren’t good enough for a rebrand:
1. It is a new year!
Bust out the bubbly because it’s a new year! It’s time to rebrand! The old collateral? “We can keep the content, but we’ll just redesign it.” It’s amazing how many times I have heard that response. This old-school mentality to content development is dead, whether you know it yet or not. Remember that marketing is an investment. You wouldn’t treat your financial investments so frivolously, so why would you do it with your company?
Design is always based on content, so essentially it should be the last step in your rebranding project. More importantly, you need to take the time to investigate, rediscover, plan, and execute a show-stopping campaign even if it doesn’t fit nicely on a calendar. The extra time you invest in the beginning will pay huge dividends in the end…literally.
2. The CEO thinks it’s a good idea.
I’ve been in many meetings where the CEO loves the color blue. And so, the company decrees that blue, on blue, with blue highlights is the new color scheme. His staff may not have the guts to tell him “No,” in fear of confrontation, but I sure do. I love debating with my clients! Healthy debate is a good thing. It’s the ying and the yang. Unless your company is in the business of selling CEOs, there are usually better people to poll than the CEO. Research is king. Poll your target market. Poll your existing clientele. If you do a bit of research, you will likely come back with some good insights and interesting information. You may even find the results to be completely different than what you expected. Once the research is done, making a case becomes much easier. A lawyer wouldn’t go to court without researching the case so why would you?
My friend John Cutler says, “Being N.I.C.E. means Nothing In me Cares Enough.” We’re not paid gobs of money to be nice. As marketers it is our job to do the right thing even if it is an uphill battle. Being a “Yes Man” with your clients is the same as saying yes to your kids all the time; it always does more harm than good. Your client will be happy in the short term, but in the long term results will suck and your marketing ‘guru-ness’ won’t look so guru.
3. You need to validate marketing’s existence.
If you have a marketing team, you have them for a reason. Their job should be to create a never-ending stream of stories, campaigns, and business ideas, right? WRONG. A new brochure isn’t the cure to a bad sales outlook, it’s probably a part of the problem. In every case, the marketing team would be better off taking a break from the constant visual communication production. Instead they should be communicating with the sales team, asking them what will help make their jobs easier. What road blocks do the prospects put up? Why do the prospects say ‘no’? Are they confident in the product? The company? The sales team needs to be fearless and secure in what they are selling. Having a well-thought out communications strategy will help them help the prospect. “Help me help you help me help you!” – Jerry McGuire
Another awesome endeavor is to go on a listening tour. Concentrate on building the relationships you already have. It is arguably easier and unequivocally more important to focus on client retention than client acquisition. Happy clients will sell you better through their word-of-mouth than a glossy brochure ever could.
4. An industry trend needs to be included.
Web 2.0 created many design memes and in its wake a torrent of new businesses were born covered in cliché designs. Following a trend can be beneficial because it shows you are awake in a sleeping industry; but following trends is a dangerous game. There is always something new and exciting and because of this infinite evolution, your brand – if built on a trend – will become outdated just as quickly. The great brands are timeless and the greatest brands start the trends rather than follow them.
5. You feel the reason you’re doing badly is because of your crappy marketing materials.
Consider this your intervention – it isn’t just your identity and it isn’t just your marketing materials. Your brand is suffering on a deeper level and it might even stem from you as it’s decision maker. ‘Look’ and ‘feel’ helps to set initial customer expectations, but at the end of the day it’s just a brochure and the prospect still needs to feel compelled to open it. More importantly, the business needs a remarkable product or service to survive. Focus first on building relationships – where everyone feels validated by great output. Do that and a strong brand will follow.
The best brands use their visual identity to reflect their core values. When you waste your time and energy overhauling your collateral on a whim it shows a lack of understanding what these are.
Stay Hungry. Stay Focused. Stay Unstoppable. Be Remarkable.
December 1, 2009
1. You look exactly like your competitors.
Cool sells. Bottom line. Apple is a prime example of the ‘cool’ that other companies attempt to copy but rarely duplicate. Cool companies don’t chase it and they don’t copy it. They create it. If you look and sound exactly like your competition what does that say about you? What makes you different? What makes you better? What makes you cool enough in the eyes of your potential customers that they HAVE to have you? Do you have lame, inexpensive stock images? If you do you’ll find comfort in numbers because so does everyone else. But why do you want to be like everyone else? Try using higher-priced stock images that fewer people have, or even better, how about create your own photo shoot using real people in real situations? You can’t fake cool. Either you have it or you don’t. If you are truly as different as you say you are, you won’t do what everyone else is doing. Your company is unique, and your brand needs to portray its uniqueness through everything you do.
2. You look unprofessional.
Many new businesses leave branding at the bottom of their to-do lists. The thinking is that it allows the business to get up and running while dodging the initial discovery and design costs. This is totally understandable and depending on the type of business, sometimes I recommend it. The company needs to discover itself through the formative years. Quite often a company doesn’t realize their true identity and niche until they have a few years of business behind their belt. Building your business is more important than having the perfect logo or website.
That being said, there comes a point in time when your Do-It-Yourself brand needs to die a horrible death. The problem is that many companies don’t know when to put their brand to the firing squad. And because of that, there are many companies out there with identities that represent the way they used to be; a ‘mom-and-pop’ start up working out of the basement. A good rule of thumb is to update your brand when it doesn’t portray the professionalism you want it to. If you stick to this rule it could mean that you’re rebranding after a month, or even a year if business goes well. You have to remember that whether you like it or not your brand is always representing you and an unprofessional brand can often do irreparable harm. Much of our decision making as consumers is based on preconceived perceptions and if you don’t look good, how can you expect to attract the right kind of business?
3. It’s unclear what you do.
Don’t laugh – you’d be shocked at how businesses strive to be unknown. A good brand does more than look pretty, it should tell others what you do, how you do it, and why you are the best choice. Remember a brand is not a logo. Your logo is the identity of your brand. A brand is much deeper than a logo or a website. It is your DNA. It is the foundation of your entire business philosophy. It is how you answer the phone to how you dress. It is how you hire staff to how your work. Your brand must be clear and consistent through all you do, including how you portray yourself through the web, print, radio and every other “touch-point” with your audience.
4. You look outdated.
People have become increasingly smarter and better trained over the years. As an art form, design is subjective, however, most of us can easily pick out what looks good and what doesn’t. We especially respond positively to what is new. We are always looking for the newest smart phone, the newest paint color, the newest car, the newest hairstyle, the newest fashion, new, new, new. And while new doesn’t always mean better, “old” is rarely better. Perception as I’ve already indicated goes a long way. A brand can tell us how much they care about themselves and their customers by how well they are dressed. A tired brand gives customers the impression business isn’t good and this usually leads customers to believe the product and service aren’t up to par as well.
5. You don’t inspire.
The best brands defy convention and build excitement. It is important for your customers to feel something when they buy from you. So how does a customer get inspired? Well, you are a consumer, what brands inspire you? What’s so inspirational about them? Maybe they have a funky space you love hanging out at? Maybe their product is so unbelievable that you tell everyone about it? Maybe they have staff that are so helpful, so knowledgeable, and so cool you become their biggest fan?
Inspirational brands start by inspiring their employees. The employees should be as much a part of the brand as the brand itself. They need a brand they can believe in, and if they don’t, quite often that means it will be tougher to believe in themselves. When your employee pulls out their business card, don’t you want them to have the comfort of having a brand they can stand behind? Too many business owners don’t build inspirational brands and then wonder why their sales team can’t sell. You might have the best product out there but if people don’t believe in you, you might as well pack your bags and call it a day. When inspired, your employees can potentially become your biggest evangelists and thus your most inexpensive medium for advertising. It’s called word of mouth marketing (and as we all know, WOM marketing is the most powerful form of advertising around).
“If you build it they will come.”
Seriously?! Do you really think that’s true? I say, if you build it, they might come…if there’s nothing good on TV. BUT if you inspire them, they WILL definitely come (and they’ll do it more often)!
If you liked this, come back soon to learn 5 Reasons NOT to Rebrand.
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