Building Brand Identity A Brand is something that immediately creates a mental image of your company and its value to the customer. It is not something that is created by a logo or advertising, although these help enhance it. Brands convey the thought that the service or product will meet a minimum consistent value to the customer which causes the customer to spend the dollars (safely) and receive value equal to, or in excess of, the dollars spent. It also serves to bring customers back with trust and also allows them to recommend the company to others without fear of regret. When McDonalds started, there were hundreds of thousands of road side establishments serving hamburgers. But the customer took a risk by going forth into the unknown and McDonalds began to flourish because the customer learned that they could expect a certain quality of product at any McDonalds, so the uncertainty was gone. McDonalds worked on this to provide consistency throughout their stores. There were better hamburgers out there, but McDonalds offered a risk free place to eat. They were zealous about their consistency; deviate and you lost your franchise. They offered consistency and value. Look at the successful companies: Wal-Mart for value, Starbucks for exceptional coffee, and Barnes and Noble for variety and atmosphere. There are cheaper alternatives, but people go where they know the value is equal to, or better than, what they spend. Now look at K-Mart, Sears, and Arbys. What do you expect when you go there? Do their Brands have lasting value? The first key is to know your niche. Great service and the lowest price do not go hand in hand, they are at opposite ends of the spectrum. And unless you have a very steep price discount that you can maintain, then you need to find the correct point on the spectrum that your customer will feel the value. You must work on consistency, every minute of every hour of every day. One poor incident may be rectified if you immediately address and correct it (no, over correct it). Then your reputation may not suffer. But several incidences and ignored lapses in product or service will destroy all of the work that you have in building your Brand. Even, then it is difficult to lure customers for the first time with just promises. Satisfied customers can help, but you may have to run a “get to know us special”, which is funded by your startup capital. There is an old saying “no purchasing manager ever got fired for buying IBM”. To some, the safe choice is better than exploring the better alternatives. So it is an uphill struggle. So once you Brand is known for something positive, keep it consistent every time and work to exceed the value expected by the customer.
Thomas M. Nunnally is a retired banker with over 30 years of experience in business lending. In addition, he is the co-author of The Smaller Business Insider’s Guide to Bankers from Oasis Press. It is available at the Enterprise Small Business Resource Center. |
