Ah,
branding. One of the biggest headaches for any business start up. But what does
it refer to exactly?
Contrary to
what most people believe, a brand is not a logo, an image or a name. These are
tools or icons you can use to help materialise the brand into something more
tangible and help people recognise it and associate it with what you do. It can
be very helpful, but it’s not what makes a brand.
A brand is
a set of values, promises, anecdotes and expectation that you adhere to and
respond to. It’s what you tell people when they ask you what values you
represent, what you promise you will do for them and the consistency you show
when doing it. It’s what will make a customer choose your product or service
over a similar one, and what will make them recommend it to others when they
see that you’re being honest and their expectations are met.
If someone
decides to buy from you because you’re cheaper, or closer, or just happened to
be there, your brand had nothing to do with it. But if they do it because they
can relate to what you claim is the basis for your business, or you’ve exceeded
their expectations in the past, or you’ve been recommended by someone they
trust, that’s when you can see your brand’s value and the effect it has on your
customers.
I don’t
know what it’s like where you live, but here in Manchester estate agents have such a bad
reputation and deliver such bad service that more than once I’ve found myself
pondering about the possibility of living in a cardboard box just so I didn’t
have to deal with them. Yet they get hundreds and hundreds of customers every
year. The reason? People will always need a place to live in. And since they
are all equally appalling, the competition has come to a kind of stand still,
in which customers find a house they like first and then look at which estate
agent deals with it, instead of picking one they trust and asking them to show
them some flats.
There is no
brand there. Even though I can recognise the logos of a fair amount of them,
there’s nothing that would make me pick one over another. But if tomorrow a new
state agent opened that promised honesty, transparency and the guarantee that I
will be listened to and my problems dealt with, and most importantly, delivered
in all those areas, I’d become estate agency monogamous and would never look at
another estate agent again, even if it didn’t have a logo. And that’s where the
brand value is.
David vs Goliath
You could
probably look at hundreds of logos or listen to hundreds of jingles and be able
to associate them with a certain company. You probably also realise that these
company’s customers are happy to pay a premium because of what their values or
stories mean to them. The reason the “big guys” are so successful with their
branding is that they have resources that micro business owners can’t even
dream about. Things like:
· Bucket loads of money – Funds that allow them to hire
great graphic artists to design their logo, great marketers to create the set
of values they will sell and great creatives that will come up with an emotive
story behind those values.
· Exposure – With big money comes the ability to sell their
stuff through channels that are not available to small business owners, which
means that people will be slapped with their name, image or logo over and over
and learn to recognise it.
· Huge brand equity – People buy Nike clothes because of
the perceived commercial value the name instils in them, not because the
products are so much better than those from other brands. A small business will
always have a harder time to build theirs.
· Trust – If only because they’ve been around forever,
they are big and the perception that if so many people buy from them they must
be doing something right.
It seems
like we’re doomed, right?
No. Not
unless you try and compete with them in their own terms. If you’re trying to
pay for your logo to get a lot of exposure and be recognised, or create a set
of values and promises that sound awesome without planning to stick to them and
live by them in everything you do, or assume you only need to print some
business cards and your name will be enough to get people through the door, you
are trying to compete with the same weapons they use, and you will always lose.
So what do
you do?
You hit
them where it hurts, and you do so by using the resources that you as a small
business have and they don’t. Let’s look at some of them:
· You’re quicker than them – Big companies have a lot of
employees and a lot of layers of bureaucracy that anyone with an idea has to go
through before anything changes. They also tend to be slower when it comes to
changing with the market. They are like elephants. Small businesses on the
other hand, can take decisions quickly and implement new ideas without waiting
around for someone else’s approval.
· You have freedom – A big company will always have
people they have to respond to, like boards of directors or stakeholders. Small
companies don’t, which means they don’t have to launch a new product or service
ahead of time just because someone wants to see an increase in profits, or
distribute through a channel that is not the right match for their values.
· You can guarantee your business sticks to its
values – The other
day I read about a woman who had booked a holiday with Thomson and complained
because she was grossly disappointed with it. A month later, she started
getting emails from a Thomson employee who told her to shut the f*** up,
insulted her and told her to book with Thomas Cook next time. Do you think
Thomson’s CEO would have reacted in the same way, when their values promise
great value holidays made just for you, and risk hurting their brand?
Unfortunately, it would have been hard for him to hear about the complaint.
This doesn’t happen with small businesses, as the owner tends to have a lot
more control about how situations that challenge the company’s values are dealt
with.
· You need a lot less to be happy – A small business owner does not
need to pay employees, stakeholders or distributors, nor buy a lot of expensive
equipment or resources, so it won’t need to earn as much money as a big company
does. This means that their actions are less profit driven, they don’t need to
expand continuously and they have a bigger margin of manoeuvre to make their
customers happy.
· You can show your human side – People are tired of having to deal
with faceless conglomerates. You only need to say “O2 customer service” in
front of someone and see the expression of utter horror on their face to
realise that. They want to know that if they have a problem they will be able
to talk to a person who is invested enough in the business to care about it,
they want to feel like they are helping someone they can identify with to
create something great, they want to connect.
This is a lot harder to achieve for a big company.
Those are
your weapons. If you use them, you will be playing in a different field and you
won’t have to concern yourself with beating them at their own game. Plus,
working on your branding doesn’t have to cost the earth, and it definitely
doesn’t mean you need to hire experts to do it for you. Like Dan Germain from
Innocent Drinks (yes, it started as a small business too) says: “If you
pay someone to do the fun stuff and come up with ideas -- well, that's crazy!
It's got to feel right and natural, not bolted on, which is why I think you've
got to do it yourself. The brand has got to run true inside the company and
out.”
A Little Anecdote
I buy quite
a few books and albums online - some of them fairly main stream, a lot of them
more independent and obscure. For a while, I made most of my purchases on
Amazon.com, purely because it has low prices, it delivers fairly fast and it
has a good selection.
This is
what I get from Amazon when I buy something:
|
And this is
what I get one it is dispatched:
“Hello,
We thought
you'd like to know that we've dispatched your item(s). Your order is on the
way, and can no longer be changed. If you need to return an item or manage
other orders, please visit Your Orders on Amazon.co.uk.”
But one
day, I was looking for an album by Greg Holden, a British singer/songwriter I
like. Since he wasn’t signed through a major record label (he got known by
posting his videos on Youtube), his album was available via CDBaby – an online platform founded by Derek
Davis in his bedroom, which allows independent musicians to distribute their
work outside of the usual established channels.
CDBaby came
to life as a way to support independent musicians and help them share their
work. The reason it worked so well was that Derek, the creator, made a huge
effort to cater for these independent artists and make things as easy and
pain-free as possible for them, while it provided music lovers all over the
place with the chance to support less know artists they liked in a very direct
way (as most of the money goes to them).
The site’s
values obviously included supporting a fairer, more humane system for artists
to live off their work, and I wondered how well this would translate in their
marketing efforts when it came to how they communicated with the customers. So I
had a look at the site in search of the album and it turned out the first batch
of CDs had sold out, but there was an option to tick a box and they would let
you know when it was re-stocked, which I did. Soon after that, I got this
message from them:
”Hi June -
You asked me to tell you when this CD arrived, and it's here!
GREG HOLDEN: A Word In Edgeways
CLICK HERE TO BUY IT:
http://cdbaby.com/cd/gregholden
It's back in stock now. You're the first to know. It just got here an hour ago. We can send it to you in tomorrow morning's mail. Just click this link:
http://cdbaby.com/cd/gregholden
Enjoy!”
Awesome. I
bought the album. And then I got this:
“June-
Thanks for your order with CD Baby!
(1) Greg Holden: A Word In Edgeways
Your CD has been gently taken from our CD Baby shelves with sterilized contamination-free gloves and placed onto a satin pillow.
Thanks for your order with CD Baby!
(1) Greg Holden: A Word In Edgeways
Your CD has been gently taken from our CD Baby shelves with sterilized contamination-free gloves and placed onto a satin pillow.
A team of 50 employees inspected your CD and polished it to make sure it was in the best possible condition before mailing.
Our packing specialist from
We all had a wonderful celebration afterwards and the whole party marched down the street to the post office where the entire town of
We hope you had a wonderful time shopping at CD Baby. In commemoration, we have placed your picture on our wall as "Customer of the Year." We're all exhausted but can't wait for you to come back to CDBABY.COM!!
Thank you, thank you, thank you!
Sigh...
We miss you already. We'll be right here at http://cdbaby.com/, patiently awaiting your return.”
How great
is that? And how different from Amazon’s generic message? CDBaby knows that it
can’t compete with the huge variety, budget and low prices you get at Amazon,
so it doesn’t. It also knows that one of the reasons customers buy from them is
that they want to feel like they’re doing something important by supporting
independent artists. So they use their confirmation e-mails to reinforce this
message, by making sure they use the customers name rather than something like
“Dear customer” and by making her or him feel like their order was important
enough to let them know the product they wanted was in within an hour of it
arriving (although that probably wasn’t the case) and their purchase was big
enough to make the whole city of Portland march down to the post office to say
“Bon Voyage!” (although they probably didn’t). In a nutshell, the experience is
almost like calling a good friend and asking them to buy you this album you
like and send it over to you, but even better because they probably wouldn’t
have access to a packaging specialist from Japan or a private jet.
Not only is
this a great way to convey how important your business is for them and make you
feel unique, it also create huge opportunities for word of mouth – and word of
mouth is one of the best things that can happen to a small business. I can’t
count the number of people I’ve recommended the site to by telling them to keep
an eye for what they get when they order.
So when
you’re thinking of what your story is and what your business stands for, keep
in mind your weapons. Think of how your story is meaningful to your audience
and make every effort to back it up with everything you do and with everyone
you work with. Make sure your brand is consistent when you talk to your
customers, when you sell something, when you solve a problem, when you go into
partnerships or when you let your audience in on what’s happening behind doors.
And most importantly, don’t forget your audience wants to connect with you in a
way they can’t with a big company - be
humane.
Next week…
I will
likely be in a constant state of drunken stupor as I only have 2 weeks left at
my job and I want to go to all the Christmas parties my company and suppliers
are throwing – that’s 3 this week. On Tuesday Google is taking us to Narnia
(I’ll let you know what this means when I know), on Thursday we have a Mad Men
themed company party and on Friday my department is going out for drinks.
Still, I
will do my best to write my next post in the brief moments of lucidity I’ll
have in between. Next week’s will be about pricing and budgeting, which is
something I know a lot of people have a huge problem with.
Thanks for
reading, you wonderful people.