Tag Archives: brand

Why does a lot of small business marketing not work quite the way you’d like it to?

Why does a lot of small business marketing not work quite the way you’d like it to?

And how can you change it?

(First presented to Reading’s RG1 group at Artigiano Reading on Thursday 24th September 2015)
RG1 meeting at Artigiano Reading

RG1 meeting at Artigiano Reading

To answer these questions, we need to go back to the start of a business. When the business owner – let’s call him Nick – sets up the business, he has a number of things, but the two that I want to focus on here are that he has a really clever, unique idea, and a “little black book” of contacts. When the business starts, it is likely to go through a period of rapid growth, as Nick really works his metaphorical “little black book” (and these days, with the power of LinkedIn, this can be a pretty big black book).

It’s worth adding an aside – this is relevant for most people that want to grow their business, but particularly pertinent for anyone that is working in professional services, or that has an intangible, hard-to-articulate, very clever or niche business proposition.

Scaling the business

At some point, the business owner (Nick) will start to think about how to scale that business beyond his or her own network. This may be within that first four years or so, whilst there is still some leverage in Nick’s own network. Or it may be that the growth in turnover starts to slow, plateau or even drop.

So this is the point at which the business is likely to invest – perhaps in a sales director, who brings his own little black book, in a CRM system, or perhaps in working with a new marketing agency. And in some instances that can fill a gap, but often the initiative ends up disappointing for everyone. It doesn’t create growth – in turnover or GP. In fact there may be such an increase in costs that the business starts losing money.

Here’s why. When you start up the business, everyone you are talking to knows you – or thinks that they do. The trust is in the business owner themselves as an individual. And that’s great. That’s why I called my agency Becky Holland & Partners (we’re still in the first growth phase).

But as you grow, the people you are talking to are not presold. Until you engage with them, they don’t really know you as a person. And so they don’t trust you. So the number of real leads that come in to the business will be proportionately less. And your conversion rate is likely to not be quite as good.

I’ve spent the past few years working with businesses that want to reverse that trend. To pre-sell the business as a whole to a specific audience of people.

Scaling a business requires not just trust but, critically, reaching a point where that the trust is not just in the business owner and partners, but in something tangible that the business stands for in its own right. Something unique that prospects will build an emotional connection with, and which they will remember. Something that is greater than the sum of the parts.

There’s a name for this thing. Brand.

Armed with this understanding, you are then ready to scale the business.

Small business owners can get really bogged down with the sheer scale of what they think they are “supposed” to do – social media, writing blogs, making video, generating all sorts of content. And none of these in its own right is a bad thing. They just take a lot of time sometimes, and it can be hard to see how it will get the business to where you wanted to go. Fundamentally, without a strong proposition and brand, all this does is to create a level playing field with everyone else that is competing for the same customers. This stuff is practical, and tactical – but in today’s world, I’d hesitate to call it marketing. Effective marketing is all about the message, and articulating it in clever ways. It’s not about the mechanic.

Things you can do to get started

If your business is established, and you want to try to find a way to scale it – I mean properly scale it – so that it has a value in its own right, then I’d recommend two books that would really help.

One is “Tribes” by Seth Godin, which gives you some really great examples and advice about starting a movement. Capturing your passion and the essence of what you do – and in the process building a “tribe” of followers. Preselling your business in a way that will help marketing work harder for you.

And the second is “Lean Startup” by Eric Ries – because so many of the principles in there – particularly those around “failing fast” are directly relevant to what growing organisations need to do to create focus, and make marketing work for them. This is a pretty good article from HBR if you’d like to read more (link)

The impact of brand on business growth and marketing ROI

The impact of brand on business growth and marketing ROI

You could probably write a whole book on the subject of brands. But as it’s a Friday afternoon, I thought I’d keep this short and sweet.

“Brand” means different things to different people. To many, it’s all about logos, colours and typefaces. For others it’s about reputation.

But a great brand is much more than that. After all, how many established market leaders do you know, that don’t have a strong sense of their own identity. Something that people can relate to,  and that they will choose to interact with (and buy from) almost regardless of the product?

Brand: in a nutshell

Here’s our guide to what ‘brand’ means in 2015. This is as relevant for small, growing businesses, as it is for established brands:

  1. Branding can most simply be described as “the relationships that account for a customer’s decision to choose one product or service over another”
  2. When a brand is strong and respected, it provides protection for the business during an economic downturn. This can blunt the effect of any crisis, because of the goodwill the company has in reserve
  3. A brand gives people an emotional reason to connect with a company. This leads to them considering new product innovations or offers in a positive light, even when these were not previously in their consideration set
  4. Having a strong brand allows a business to be valued as more than the sum of its parts. This protects the business if a key person or asset is removed from the equation (such as in a professional services firm, particularly in the legal sector, where business is often generated on the basis of an individual’s reputation rather than that of the business)
  5. A strong brand allows businesses to “scale” – to become presold beyond their own direct network, and to enter new and previously untapped markets. A strong brand means that when the company moves into new products or markets, it carries customers with it
  6. Businesses with a strong brand can charge a premium for products and services. Apple provides an extraordinary example of how to do this, with little or no resistance from the market
  7. A strong brand has a tangible value on a balance sheet, attractive to investors and VCs. This can be rather handy when you need to raise funds to support growth, or fancy retiring to the sun.

We have some great examples of how this works in practice for our clients. If you’d like to find out more, just get in touch.

 

Immediacy, “omnichannel”, creativity and brands

Immediacy, “omnichannel”, creativity and brands

Highlights from the Festival of Marketing #FoM14

Coke mini can campaignLast week, we spent two action-packed days at Tobacco Dock, and my mind is buzzing.

There were some strong themes that came out, and so I thought I’d share some of what we found out.

Theme 1 – Immediacy

I blew it. I admit it. I meant to publish this blog last Thursday, but work got in the way. The only person that’s really bothered about this (if I’m honest) is me. But for brands, the ability to respond quickly and appropriately is never more important than now.

Alastair Campbell (and other speakers, such as Mike Eames from Barclays) talked brilliantly about the impact that social media has had on reputation and “spin”. The ability to respond both honestly and very quickly is paramount. Hopefully the #FoM will post his talk on Youtube as it was brilliant (they haven’t done so at the time of posting).

In the spirit of immediacy, Alastair himself posted his script far more quickly than the Festival of Marketing – you can find the whole text here on his blog. – http://www.alastaircampbell.org/blog/2014/11/13/is-spin-dead-in-the-era-of-social-media/

Theme 2 – Omnichannel

I don’t know when the word “omnichannel” started to appear, but it was mentioned a lot last week, with the emphasis on providing a seamless experience for customers.

So what’s really changed? Omnichannel is on the face of it not much more than the rebranding of “integrated”. But we are in a world that is changing. A world where “integrated” quite doesn’t get across the idea that messages need to be both engaging and utterly consistent regardless of channel. As we move to a world where all television is in high definition, on demand, this is really exciting for marketing. By 2025 it’s predicted that we will have 48 million TV viewing options at any moment in time. For brands, this will require a fundamental shift, so a new word is probably appropriate. Is “omnichannel” the right word? We’ll see if people are still using it at #FoM15!

Theme 3 – Broken Marketing Paradigms

I attended a brilliant session by Coke’s Javier Sanchez-Lamelas, which I unashamedly steal from here, because it was so good.

1. Everything has changed

Marketers today are obsessed with media and channel, with NPS and social metrics. But that’s not what marketing is all about. Marketing is about engaging with people in new ways, creating emotional connections with brands that changes behaviour, and the subsequent changes in behaviour. He reminded the audience that everything Peter Drucker had to say is still true.

2. We haven’t seen this before

Javier talked about the explosion in channels and in consumer choice, and the impact this has on marketers. He showed us that this is not a new phenomenon, but that it happened before with the invention of the printing press, the radio, and then film and TV.

This change offers brands opportunities to create real connections with their customers (but will also spell the end for those who concentrate on media at the expense of creativity). This spells a move from “creative communism” (where brands pay media owners to air their content) to “creative Darwinism” (where poor marketing, that is not adaptable, will die).

3. Globalisation = Centralisation

As business becomes more global, Javier argued that this is a time to expand your reach, with cultural and local representatives all around the globe communicating and working together. If you try to centralise marketing or operations, or any other part of your business, you fail to recognise the many shades of light and dark, nuances and trends that impact on the success of your organisation.

He shared some of the fantastic global Coca Cola campaigns, pointing out the success of the Share a Coke campaign (from Australia), and the mini can campaign (from Germany).

4. It’s complex to predict the future

It’s not complex to predict the future. We have more metrics, more data, deeper understanding than ever before. We need to predict the future in order to stay ahead.

According to Javier “You must make sure the change inside your company is going faster than the change outside. If a marketer thinks they live in the future then they will not be able to progress their mind. Spend time talking to early adopters and kids if you want to be able to predict the future otherwise that’s a recipe for disaster. Without [external] guidance you’ll most likely be creating content for opportunities that no longer exist.”

5. Innovation is a central department

Javier’s point: “If you appoint someone as the head of innovation, then everyone else in the business thinks they can stop innovating”.

Point made!

 

This was the second Festival of Marketing – some brilliant content, and great speakers. There were a few organisational issues, particularly with The Digitals award ceremony, but overall we’ve come away with a lot of new ideas.