Commentary

Building Brands vs. Building Bargains

Did anyone else see the article that was in The New York Times Sunday edition about two weeks ago regarding the topic of brands versus bargains?

The article brought up the fact that while prices for many products and services such as airfare, telecommunications and packaged goods are lower now than they were 10 years ago, consumer satisfaction with these same products and services are also lower than 10 years ago. Referencing a tool called The American Customer Satisfaction Index, the article described how companies need to focus on more than just pricing and convenience in order to build a brand. They need to look outside the ordinary and offer unique value and innovation.

According to the article, "News and Analysis; Companies Find They Can't Buy Love With Bargains," some of the strongest customer satisfaction ratings are applied to companies such as H.J. Heinz and Amazon.com (who reportedly scored the highest ever for a retailer). These are companies that could not be any more different, but that have both built a strong rapport with their customers. How they have been able to do so is, of course, what interests me.

advertisement

advertisement

H.J. Heinz is a company that has been around forever (at least it seems to be so) and represents a mainstay in the world of packaged goods. They are ubiquitous with their products and though they are not necessarily a sexy company, nor have they built an exciting image for themselves, they are recognized as the standard in the industry they represent. The various products they offer are recognized and purchased consistently.

Amazon is a digital company that has managed to build its brand in a fraction of the time that H.J. Heinz spent, though is possibly as recognized as any of the more traditional companies in existence. They have grown through the development of innovative services and technology tweaks as well as a focus on customer satisfaction. I read an article once where Jeff Bezos was paraphrased as stating that his singular drive for the growth of the company was to be customer-focused and customer-fearing. He wanted the company to be focused on customer happiness and fearful that if you were not focused on them, that they would be fickle and go elsewhere for the same services.

All companies could benefit from examining these players, but of specific importance is the concept that I have dealt with before in these very pages: building a brand is not about hitting the customer fast and furiously. It is about a true dialogue and building a relationship whereby the customer sees the value of what you are offering and understands that even though they could go somewhere else to find the same product at a less expensive price, your intangibles are what will make them loyal to you.

The difficulty in doing this arises in marketing messages. Your marketing needs to convey this sense of self-worth without being blatant. Like the comedian who gets up on stage and says to the crowd, "laugh at me, I'm funny" versus the comedian who gets up on stage and tells great jokes. If you are funny, the audience will know it, you don't need to tell them.

When you develop your messaging and write a strategic brief for the next campaign you work on, think about these concepts and attempt to demonstrate rather than tell. Attempt to show the consumer, rather than proclaim your values. If you do this consistently through your messaging, your long term growth will be guaranteed without sacrificing your short term metrics for success.

Next story loading loading..