We often see companies who think they are building their brand but who are actually breaking down their brand. In fact, their efforts cost the company MORE than strategic brand building. Here is a parody of the 5 biggest reasons causing a brand to break down:
1. They love to spend more money to get their brand out there.
It’s easy to waste lots of money on advertising and marketing budgets. And yet, a strong brand has proven many times that increase in business and revenue can be accomplished much more effectively and less expensively if leveraged with brand efforts. For example, 50 percent of customers are willing to try a new product if it comes from a brand they know and trust.
2. They love to come up with new advertising campaigns and gizmos on almost a weekly basis.
Too often companies recreate a new advertising campaign over and over…here today, gone in a month. They don’t actually create anything of lasting value. So the work must be done again and again. And the dollars and energy must be spent again and again. Yet, if the advertising campaigns were consistently created through the brand lens, it will have lasting value, cost less to develop and take less time overall.
3. They love employee turnover.
They don’t want retention. They’d rather waste money on acquiring, training and investing in new employees…at great cost to the company. According to the 2012 Global Workforce Study by TowersWatson, 72 percent of employees consider themselves disengaged. Well, it doesn’t take rocket science to follow the line of thought that a disengaged employee has no compelling reason to stay or to remain loyal.
4. They love customers who don’t have any loyalty.
They like to measure their marketing campaigns over and over anyway, so what’s the point of customer loyalty? They prefer to dig in the trenches with a shovel rather than flying above in a helicopter looking over the company. According to one study, an increase in customer loyalty of a mere 2 percent is the equal to a 10 percent cost-reduction program. Let’s build loyalty, folks—and reap the rewards.
5. They love to be the lowest-priced commodity.
It’s hard to make a profit with low prices, and these companies often become irrelevant with their customers, who turn into just another commodity. Did you know that one in two customers are willing to pay a 20-25 percent price premium for a brand they know, trust and are loyal to, rather than switch to a competitor? Just saying…why wouldn’t a business develop their brand?
The key to brand building is so much more than what’s identified above. A key role is the total customer experience. Every one of a customer’s interactions with a company comprise the brand. And a positive customer experience in every one of those aspects is just as important as the end purchase of a product or service. Create an ongoing relationship with your customers—through pre-purchase, purchase and post-purchase experiences. And, that’s how you prosper as a business.