The (Questionable) Value in Branding

Photo credit: Beau B., on Flickr

Most people who are not business owners, and even some novice business owners, tend to think that building a “brand image” is much more important than it is.

I’m not saying that brand recognition doesn’t ever have real value, but for small businesses and even for many types of very large businesses, it doesn’t.

Photo credit: Circa71, on Flickr

If you have a highly specialized business serving a small, well-defined market, you don’t spend a lot on brand recognition.

One company that comes to mind is Halliburton. They are relatively well-known only because of having been in the news quite a bit a few years ago. (Due to connections with the Vice President of the United States, not so much for their service itself.) Halliburton is essentially a temporary staffing agency which specializes in providing private security forces in hostile and unstable regions. To put it bluntly, they are a placement service for mercenaries.

Photo credit: Eric__I_E, on Flickr

I read once about a company which specialized in polishing the injection ports on carburetors and automotive fuel systems. It turns out that a well-polished port makes a huge difference in fuel efficiency and major automakers outsource this type of thing.

What about the company that makes reflective paint for highway signs? Or one that manufactures the cans that hold so many of the foods on grocery store shelves? Or the maker of those concrete barriers used in road construction? Or the company that makes utility poles to hold up power lines?

Photo credit: Cote, on Flickr

Brand recognition, at least in the broad public sense, is not important to any of these companies. They don’t sell to the public and are specialized enough to have little or no competition in their fields.

If you look at phone listings in any area you’ll find a grossly disproportionate number of businesses named after the area itself. Where I live in Delaware we have many businesses with the word “Delaware” in their names. We also have many with “Blue Hen” (the state bird), “First State” (because Delaware was first to ratify the US Constitution), “Diamond State” (the state’s nickname) and other such references in their names.

Photo credit: Acme, on Flickr

I know of two pizza places relatively near me, both of which are named Ciao Pizza. They are separate restaurants with no relationship to one another whatsoever. They’re several towns apart and don’t directly compete.

For that matter, do you think people choose a dry cleaner because of a well-known name on the sign? Or could it be perhaps for other reasons? Perhaps they have great service, or convenient hours, or low prices, or a good location or even that the girl behind the counter is attractive. In this case the primary selling point, whatever it may be, is not part of a “brand”.

Photo credit: Ell Brown, on Flickr

That’s how it is with most small businesses.

Some may tout the case for uniqueness. If multiple companies have the same “brand” then consumers have a harder time telling them apart. Worse, if one incurs negative publicity, the others may share the taint.

Perhaps there is something to that. Then again, just the other day I saw a Jeep Wrangler with Good-Year Wrangler tires. (Wouldn’t it be funny if the driver were wearing Wrangler jeans!)

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So if I own Acme Cleaners and there’s an Acme Auto Body across town and an Acme Bail Bonds on the other side of the tracks and then Wile E. Coyote uses Acme explosives to blow up the Road Runner, do you really think consumers will assume we’re all the same company?

There are much more compelling ways to sell your wares, and much more effective uses for your operating capital, than “branding”.

 

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Retweet this passage Most non-business owners think building a “brand image” is more important than it is.

Retweet this passage If you look in any area you’ll find a disproportionate number of businesses named after the area itself.

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Retweet this passage In this case the primary selling point is not part of a “brand”.

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Retweet this passage There are more compelling ways to sell your wares, and better uses for your capital, than “branding”.

My Insurance Agent ROCKS!!

I love my insurance agent.

How many people can really say that? Insurance is one of those things we all resent having to pay for, especially because it’s mandatory.

These days, insurance companies sell mainly on claims that they have the lowest price. My agent’s company is no different and I assure you if we felt we were being gouged we’d jump ship in two seconds flat. The thing is, price is not our number one consideration.

This article was prompted because I just got off the phone with my agent. I was “randomly selected” by my state’s motor vehicles division for an insurance audit and called her to get the documentation I’d need to show that my car is properly insured. She not only agreed to provide the necessary documentation but also volunteered to just handle it all on my behalf.

No extra charge, no asking for a medal or a referral or any kind of recognition. She just handled it.

The thing is, it’s always that way.

Any time I call, no matter what the question or the issue, she is eager to help with a cheerfulness that makes game show hosts seem sedate.

She has also taken the time to get to know me personally. We talk about kayaking. She asks about Sue and the kids. I’ve met her dog, who she sometimes brings into the office.

Never once has she pushed me to buy coverage I don’t need or want. Never has she even asked me for a referral. So here I am giving one voluntarily. Because my insurance agent rocks.

If you want to be as happy with your insurance agent as I am with mine, call

Pam Steinebach

Nationwide Insurance

302-328-1212

I think the message, as it relates to marketing is obvious so I won’t belabor the point too much.

Great customer service, especially in this age when it is so rare, is highly valuable as a marketing tool.

The Wrong Way to Twitter (part 2)

In a previous installment, we discussed small businesses using Twitter as a tool for self promotion. In that article I pointed out how such a tool would be used differently by different types of small businesses. We looked at one class of small business and one thing they might do to correctly use Twitter to best advantage.

Photo credit: Richie Diesterheft

Today let’s look more closely at the messages that might be tweeted and their intended audience.

The message is the tweets you send out as a small business.

Every small business that uses Twitter has at least two intended audiences:

                            • Previous customers
                            • Potential customers

Most businesses don’t think much about the distinction but the messages you send to each of these two groups may be different at least some of the time.

I’m going to broadly define previous customers as anyone who has interacted with your business before. They may have bought something from you, or they may just have inquired. You may have given them an estimate or they may have crossed your path at some networking event. Maybe they even just signed up for your mailing list at some point.

The real point is that these are people with whom you already have some kind of preexisting relationship. You already know who these people are before you compose and send your tweets.

When you send tweets out to these people, your main goal is to cultivate the relationship. You want to keep yourself in their minds and encourage them to come back or to refer others to you.

Potential customers are essentially strangers who you are hoping will find you by serendipity and become interested enough to come patronize, or at least check out, your business.

You would not adopt the same level of familiarity with potential customers as you might with existing customers.

Potential customers may want to know more about your business: its history, offerings, range of products, guarantees, etc. They will need to become familiar with you and grow to trust you before moving from potential to actual customers.

Existing customers already know enough of that information to be comfortable buying from you so they may be more interested in ideas for getting more or better use out of the products they’ve already bought from you. They may want to know when a new feature or option becomes available.

With both groups, you want to do more than simply try to sell.

Selling is a turn-off that will make most people direct their attention (and often their money) elsewhere.

So what do you do?

There isn’t a one-size-fits-all solution to that.

The nature of your business may dictate different styles. In general helpful, interesting, funny, mysterious or unexpected bits of information will generate fascination and interest. These carry the dual benefit of being retweetable, thus increasing your exposure. (And helping your goal of attracting more potential customers.)

Beyond that, you really need the custom-tailored advice of an expert. I’ll give you three guesses where you can find one.

 

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Retweet this passage The Wrong Way to Twitter

Retweet this passage Every small business that uses Twitter has at least two intended audiences.

Retweet this passage When you send tweets out to these people, your main goal is to cultivate the relationship.

Retweet this passage These are essentially strangers who you are hoping will find you by serendipity.

Retweet this passage You would not adopt the same level of familiarity with potential customers as with existing customers.

Retweet this passage Selling is a turn-off that will make most people direct their attention (and their money) elsewhere.

The Wrong Way to Twitter (Part 1)

A friend came to me recently asking about using Twitter as a means to promote a small business to local customers. After a short conversation, he began to realize how complex something so simple can be.

There is definitely a wrong way to use Twitter.

Let’s look at some examples.

First understand that there are different kinds of small business. One type is a business for whom geography is unimportant. Either they do much of their selling online or they primarily ship their products. We won’t be talking about those kinds of businesses today.

The other kind is those whose primary clientele is local; paint stores, dry cleaners, car lots and the like. A customer patronizing this type of business will visit his local store and not one three states away.

Even for these types of businesses, locality matters. If you are in a small town relatively isolated from any larger towns, online advertising of most types (I’m speaking very broadly here so this includes Twitter as a form of “online” advertising) will be generally ineffective. The locals who will do business with you will almost all find you one of three ways:

  1. They’ve been doing business with you for years and already have an ongoing relationship with you.
  2. They will ask their friends, who will refer you.
  3. You are the only game in town so locals who need what you’ve got will have few options but to find you and do business with you.

That leaves small business in large cities and those in what I will loosely call suburban areas. Much of the east and west coasts of the United States tend to be a patchwork of humongous suburban areas. For example, I live more than 40 miles from Center City Philadelphia, however the greater Philadelphia metropolitan area extends a little over 50 miles to the south of the city, at least as far north and just about as far west. That’s roughly 500 square miles of basically uninterrupted metropolis.

That metropolis, and countless others just like it, may include hundreds of small towns but they all sort of run together. It’s an easy matter for a customer to shop two, three, even ten towns over.

It is in these cases where online advertising and social media prove their worth. Provided it’s done correctly.

The internet and social media are worldwide platforms. If your customer base is all within 30 miles or so of your business location (realistically, it is) then reaching prospects three states away, or three countries away, is not helpful to your business.

Because of the very low cost of online advertising, most businesses don’t bother with targeting but that’s a mistake. Not only do untargeted efforts lead to excessive online “noise”, but they can also lead to costs; both real and reputational.

So the first step is to write your tweets in such as way as to make them targeted and searchable. One of the easiest ways to do that is to add the name of your town in a hashtag, like this: #[town name]

A hashtag is a word you are explicitly marking as being ultra searchable. The implication is that it’s highly relevant to your tweets.

In the next installment, we’ll look another huge distinction that many small businesses fail to recognize. It will make all the difference in what you tweet and how you do it.

 

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Retweet this passage There is definitely a wrong way to use Twitter.

Retweet this passage For these types of businesses, locality matters.

Retweet this passage Those who do business with you will almost all find you one of three ways…

Retweet this passage The east and west coasts of the United States tend to be a patchwork of…

Retweet this passage That metropolis, and countless others just like it, may include…

Retweet this passage It’s an easy matter for a customer to shop two, three, even ten towns over.

Retweet this passage If your customer base is within 30 miles of you then [this] is not helpful.

Even Just $1-$2 Could Help Treat as Many as 437 People!

Sue and Rasta out Kayaking

That’s not an exaggeration. My partner Sue spoke recently with the organizers of the medical mission she wants to go on in November. She asked them how many patients she would be likely to see and treat during her time there. Based on similar missions done in the past, they said that each nurse would treat roughly 437 patients over the course of two weeks. (Numbers for the doctors vary by specialty.)

Multiplied by the number of doctors and nurses planning to go on this trip, the numbers are just staggering!

What that also means is that if we can’t raise enough to go, 437 people who need medical care may not get it. Or at least will have to wait for the next medical mission or try to get it from their already overtaxed local medical personnel.

Even a contribution of just a few dollars goes toward helping her get there. For only ten dollars, you will get to see photos of all of the doctors and nurses working their butts off to make the world a better place.

If everyone who reads this passes it on to just a handful of others, and if even a few of those people get involved and decide to contribute, the results could be amazing. And you’ll have the gratitude of 439 people, me and Sue included.

Click here to donate and please click the link below to retweet this article.

Remember, not only will you be doing good by spreading the word, but we’ll also still donate money to charity for every retweet. No purchase necessary. You retweet, we donate. It’s that simple.

Retweet this passage Just $1-$2 Could Provide Medical Treatment for as Many as 437 People!

Special Note: Fundraising closes 9/30/2012