Is a strong brand really important for a small company? It turns out it could be even more essential for larger firms
Brand has been the darling buzzword in marketing circles for years -- and it doesn't seem to be losing any traction. However, while the world of brand gurus, personal brands and evoked sets might appear faintly ridiculous, there is a method to the madness - and some real benefits for the services companies.
Safety first
A strong brand can act as a safety net for customers, and in an environment where the perceived risk of purchase is high, as in financial services, brands can act as a mitigator to this.
According to textbook, Services Marketing by K. Douglas Hoffman, John EG Bateson, Greg Elliott and Dawn Birch, a strong brand makes potential customers more likely to try a particular service provider.
If we start with the premise that consumers do not like taking risks, then it would seem obvious that they will try, whenever possible, to reduce risk during the purchase process… Service brands perform a valuable function… they can simplify the customer’s search, evaluation and decision processes.
Thus, service customers may already hold positive opinions about HSBC without ever having been a customer, largely based on its familiar name and logo.”
It also means that customers are more likely to come back (and become ‘brand loyal’).
“Having been satisfied in a high-risk purchase, a consumer is less likely to experiment with a different purchase,” argue the authors. “Maintaining a long-term relationship with the same service provider, in and of itself, helps reduce the perceived risk associated with the purchase.”
Insurance brokers and planning professionals are likely to already be aware of the power of strong brands: for example, the large insurers seem to be able to get their branding everywhere. Indeed, brokers can and do already ‘trade off’ the strength of large insurers’ brands.
However, by building your own strong brand, you can shift the customer’s loyalty from the ‘big brand’ to your own business or personal brand – creating long-term repeat customers.
Premium product
Brand also helps you build a competitive advantage in the marketplace. Sarah Petty and Erin Verbeck, MBAs and authors of Worth Every Penny: Build a Business That Thrills Your Customers and Still Charge What You’re Worth, argue that having a strong brand is critical to your survival. If you are ‘generic’, in many cases you’re fighting an uphill battle to get consumers to pay attention to you at all.
“Monster companies like Apple and Coca-Cola have very deep brands. Being smaller, your brand has to be more dialled in than the brands of the bigbox stores, because one mistake can leave you unrecognizable,” says Verbeck. “We have a smaller budget, limited reach and lower frequency, so when we make a branding mistake, it can cause a lot of harm. The stakes are higher for us because we are smaller. Every misstep is a big splash in your small pond.”
Petty highlights the key advantage that smaller outfits have.
“Even with your limited resources, you can beat big companies at the branding game because these power-players will never be able to offer something to their clients that you can offer – you,” she comments.
“You are an integral part of your brand – the one that’s built on your passion. “As a smaller, boutique business, you have the opportunity to get that loyalty immediately – through one meaningful conversation, one unforgettable experience, or one product that a customer couldn’t possibly find anywhere else.”
Getting it right can produce a snowball effect that could see your business grow rapidly.
“You want your customers to be so impressed with your brand that they tell all their friends about you. You want your brand to give people a reason to do business, or even wish to do business with you in the future,” says Verbeck. “You want your brand to be so strong that people are willing to spend more money with you. You want them to do business exclusively with you, and complain that every other company isn’t as fabulous as yours. It’s about people being so excited that they talk about you and invest with you – that’s the ultimate goal.”
Safety first
A strong brand can act as a safety net for customers, and in an environment where the perceived risk of purchase is high, as in financial services, brands can act as a mitigator to this.
According to textbook, Services Marketing by K. Douglas Hoffman, John EG Bateson, Greg Elliott and Dawn Birch, a strong brand makes potential customers more likely to try a particular service provider.
If we start with the premise that consumers do not like taking risks, then it would seem obvious that they will try, whenever possible, to reduce risk during the purchase process… Service brands perform a valuable function… they can simplify the customer’s search, evaluation and decision processes.
Thus, service customers may already hold positive opinions about HSBC without ever having been a customer, largely based on its familiar name and logo.”
It also means that customers are more likely to come back (and become ‘brand loyal’).
“Having been satisfied in a high-risk purchase, a consumer is less likely to experiment with a different purchase,” argue the authors. “Maintaining a long-term relationship with the same service provider, in and of itself, helps reduce the perceived risk associated with the purchase.”
Insurance brokers and planning professionals are likely to already be aware of the power of strong brands: for example, the large insurers seem to be able to get their branding everywhere. Indeed, brokers can and do already ‘trade off’ the strength of large insurers’ brands.
However, by building your own strong brand, you can shift the customer’s loyalty from the ‘big brand’ to your own business or personal brand – creating long-term repeat customers.
Premium product
Brand also helps you build a competitive advantage in the marketplace. Sarah Petty and Erin Verbeck, MBAs and authors of Worth Every Penny: Build a Business That Thrills Your Customers and Still Charge What You’re Worth, argue that having a strong brand is critical to your survival. If you are ‘generic’, in many cases you’re fighting an uphill battle to get consumers to pay attention to you at all.
“Monster companies like Apple and Coca-Cola have very deep brands. Being smaller, your brand has to be more dialled in than the brands of the bigbox stores, because one mistake can leave you unrecognizable,” says Verbeck. “We have a smaller budget, limited reach and lower frequency, so when we make a branding mistake, it can cause a lot of harm. The stakes are higher for us because we are smaller. Every misstep is a big splash in your small pond.”
Petty highlights the key advantage that smaller outfits have.
“Even with your limited resources, you can beat big companies at the branding game because these power-players will never be able to offer something to their clients that you can offer – you,” she comments.
“You are an integral part of your brand – the one that’s built on your passion. “As a smaller, boutique business, you have the opportunity to get that loyalty immediately – through one meaningful conversation, one unforgettable experience, or one product that a customer couldn’t possibly find anywhere else.”
Getting it right can produce a snowball effect that could see your business grow rapidly.
“You want your customers to be so impressed with your brand that they tell all their friends about you. You want your brand to give people a reason to do business, or even wish to do business with you in the future,” says Verbeck. “You want your brand to be so strong that people are willing to spend more money with you. You want them to do business exclusively with you, and complain that every other company isn’t as fabulous as yours. It’s about people being so excited that they talk about you and invest with you – that’s the ultimate goal.”
