Seducing the customer

BOOK EXTRACT

Tom: ...What do you think makes a brand strong?

Executive: Being well known, I suppose.
Which means what?
That when someone has a need they think first of that brand.
Okay, let's try it. When I say rental car, what's the first company that comes to your mind?
Okay, I'm thinking of one. So what's your point?

Stick with me and really think about what I'm about to tell you. Whatever that brand is that you're thinking of, is that the brand that you choose all of the time?

No. Why?
Because to you, that "top of mind" rental car company is not a strong brand. A strong brand evokes one or more of the following three behavioral attributes: you'll pay a premium for it when compared to alternative solutions; you'll go out of your way to get it "" it becomes a destination in its own right; or you'll continuously repurchase it. You won't accept a substitute, within reason, of course.

What about recommending it?
Well, if you won't do any of the first three things, you surely won't recommend it. Right? Unless, of course, you've been bribed or threatened, or if it were a transactional purchase "" a one time deal. Let me ask you a different question. Do you frequent any local businesses during work hours; say a particular store or restaurant?

Sure.
Well, let's say your place of business was suddenly relocated a few miles away from where it is now, would you continue to frequent those places?

You mean if I had to drive instead of walk, would I? Probably not to all of them.
But there are ones that you would drive back to. So ask yourself why? My guess is that it has something to do with the social connections that you've made. Or you've been conditioned to believe that you're receiving great value. Right? You probably have no idea, nor do you care, how the prices truly compare with the place down the street. You're going back for the feeling of belonging or of getting a good deal.

Which makes those brands strong to me. I get it....
...Think of some more. Ones you're willing to drive out of your way to get to, without even considering whether or not you're getting the best price. Or ask yourself: what brands am I willing to pay a premium for to continuously repurchase? Or grab a copy of the Fortune 500. All of those companies have, at one point or another, figured out the brand/feelings equation.

In fact, that's how each one of them got their start. But things are changing at a pill-popping rate in today's marketplace. People's preferences are changing rapidly, which turns today's peacock into tomorrow's feather duster. And that's why branding is today's most powerful business concept.

Because the brand becomes a reference point for people? It becomes a kind of short hand for their decision-making?
Perhaps at one time, but not so much any longer. Because the more brands there are, the less they mean. If everything is a message, then nothing is a message. Right? Plus, a brand no longer has one simple meaning. The meaning is multifaceted and fluid.

Remember, the brand is created in other people's heads and hearts from their past experiences and memories. And since the world of their experiences is changing rapidly "" due to changes in technology, new products and services, new information, fashion trends, media influence, news reports, even relocation "" their assumptions, thoughts and beliefs all change as well.

Which may, in turn, affect their thoughts of your brand "" your value to them. Companies don't go down from one fatal deathblow. They die from a thousand little marketplace cuts.

That's absurd. How is anyone supposed to keep up with all of those changes?
Listen, I'm not saying that you shouldn't make some assumptions. What I'm saying is that you must keep your business nimble and be constantly on the lookout for your audience's changing preferences. Learn to love the question. Look, you may own a very popular bagel shop, but if your customers get hooked on some no-carb diet, you had better see it coming and adjust to it. Anticipate and adapt, or die.

Like the Internet's effect on business?
Exactly. The no-carb diet may be temporary, but the Internet surely isn't. It's simply a different, albeit very powerful, form of commerce and communication. One that dramatically reduces the cost of doing business in many markets. And one that's having a profound effect on scores of industries...

...So branding is about discovering the why behind the buy "" the feelings of the customer "" and then?
And then making sure that you stimulate those feelings.

By providing things like a fair price, a high quality product, hassle-free service?
Much more than that! Today's customers insist on high quality, quick delivery and relatively low prices. And customer service is a dated, lean-back practice, where employees are paid, and technology is used, to be friendly, answer questions, and generally make the overall purchase experience an agreeable one.

Customer stimulation is a lean-forward strategy, designed to increase both sales and profitability.

Can you give me an example?
Sure. The other day I pulled into a megastore simply and solely to pick up one item, and I ended up leaving with a bag full of stuff. Mind you, it wasn't superfluous stuff: I would have purchased it somewhere during the next few weeks. My point is that despite my original intention "" get in, get my item, and get out "" I ended up buying more. I was stimulated to buy more.

How?
In that particular case, the store understood precisely what makes customers like me tick "" what happens to us while we're in their store, and how to influence our buying behaviour with signage, placement, personnel, routes, etc. ...

That's retail.
No, that's understanding how and why customers make decisions and strategically designing your business model to help them decide on you, and decide on more from you. Customer stimulation isn't simply about merchandizing or sales...

Look, new products and services are appearing daily, and new technologies and new business models are popping up like weeds in a field to strategically carve out new niches in existing categories.

So you must be constantly on the lookout for ways to connect with customers and "go deep" into your relationship with them and their relationship with you, each other, and with your brand.

It's about both developing and stimulating the purchase of new products and services that improve people's lives. It's about new processes, new business models, new ways of thinking, new ways of seeing, and new ways of interacting. Branding is an endless game of seduction.

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A CLEAR EYE FOR BRANDING

Tom Asacker
East West Books
Reproduced with permission