When we really do (and don't) need brand strategy
Not all companies are created equal, and neither are their markets. As companies often find out at great cost, brand strategy, like everything else, is not a magic pill.
I write this article from a cafe in Bengaluru that has finally embraced its place in the world as a workspace with coffee, and therefore no aspirations of being anything more than that.
I’d really love to meet the founder of this place though- their razor-sharp focus on catering to the high-snobiety of the well-exited serial entrepreneurs is enviable, and makes wonderful business sense.
Experiences like this one make me wonder- how much of what we discuss as brand strategy is fluff?
But first, a note on fluff
I do think one man’s fluff is another man’s money-making endeavour. (Sorry, I didn’t have time to think this pun through).
In a free market, multiple businesses doing the exact same thing exist. Most of them continue to exist for years without really differentiating themselves too much. When they do think about differentiation, it is to penetrate more of the market.
Let’s spend a moment discussing what differentiation means in the world of brands.
Going hard on presentation is a way to build distinction, not necessarily differentiation. Why? Because visual elements are meant to build recall in people’s minds. This is why thinking about Pepsi and Coca-Cola evokes two very different feelings in our minds- we’d have a preference but we’d also not worry too much if a multiplex served one instead of the other.
Distinctiveness is a strategy for competitors with very similar products competing in the exact same market. In other words, the pie is of a limited size, and you need to grab as much of it as possible.
So, you shout as loudly as possible.
For most B2B brands, and especially B2B tech companies, I find that distinctiveness in communication is not the first thing you need. In other words, your product needs to be distinct in the problems it solves for. In doing so, it is already taking up a share of the market that competition cannot. Your moat, your advantage, is your product and how it is delivered.
SEMRush may have run a cool digital marketing festival way back in 2019, I may have learned a lot from it, and I may have enjoyed a good lunch in a good hotel.
But my allegiance to Ahrefs will likely stay because as a product, it works for me.
One brand strategy, four approaches
So what does that tell us about branding our own adventures? A little bit of insight into a principle I am now trying to implement in every area of my life.
Cut out the frivolity, and what remains is what’s important.
-Me, I said it.
So if you’re thinking of a brand overhaul, or a refresh, or whatever it is that we like to put on our proposals, ask yourself this:
Is my solution so undifferentiated as to need enough distinctiveness to make an impact? Or are there aspects of its function and delivery that are unique just to me AND valuable to customers?
Is my objective at this time to increase my share in a limited market, or is it to serve a very specific kind of consumer?
Which brings us to the various things we can do depending on what our answers are.
Approach 1
My product has elements of value
as told to me by my customers
as seen in customer churn year-on-year
as seen in public sentiment
AND
I want to increase my share in a market that is quickly becoming limited
as seen by falling revenue shares
as seen in what my customers want to do vs. want to outsource
Go hard on advertising and be everywhere you can. Do this with what you have. You can defer investments into brand assets, but you cannot defer the job of getting as many people to sign up as possible.
Companies that (I think) are like this: Dreamdata, HubSpot, LinkedIn
Approach 2
My product has generic value
as seen in the replaceability of my messaging
as seen in the nature of employees I attract
as seen in customer churn year-on-year
AND
I want to increase my share in a market that is quickly becoming limited
as seen by falling revenue shares
as seen in what my customers want to do vs. want to outsource
Tough one. But ironically this is where you go hard on brand assets and advertising both. In other words, going the whole logo, type, etc. route AND spreading your Gospel far and wide is the price you’re paying for working with a generic solution in a saturated market. There’s no shame in it BTW, it just needs a different approach and investment is all.
Companies that (I think) are like this: The Coca-Cola Company
Approach 3
My product has elements of value
as told to me by my customers
as seen in customer churn year-on-year
as seen in public sentiment
AND
I want to increase my ability to work with a niche customer base
as defined by the clarity you have on your campaigns
as understood from the feedback you receive from specific kinds of customers
You don’t need brand assets at all. What you need is to be able to stand for something that the customer also values. Your product is already pretty strong, and what you need now is resonance. Good brand thinking can give you the differentiation (not distinction) that you now need.
For me, personally, this is the end goal. But this may not be the end goal of the CEO of Uber, for example, and that is perfectly alright.
Companies that (I think) are like this: Ahrefs, some clean-tech companies, Jay Acunzo’s offerings
Approach 4
My product has generic value
as seen in the replaceability of my messaging
as seen in the nature of employees I attract
as seen in customer churn year-on-year
AND
I want to increase my ability to work with a niche customer base
as defined by the clarity you have on your campaigns
as understood from the feedback you receive from specific kinds of customers
Tough one. Founder/CXO charisma has a big role to play here. This niche of customers needs to like you, as that’s the only compelling reason to work with you now. In this context, the visibility of the person behind the product is pretty much everything. So don’t do a brand strategy exercise of any kind. Move straight to founder branding and visibility. Get yourself as many speaking opportunities as you can. Hire a PR consultant. Get in front of people who tick certain consumer boxes and be on their radar all the time.
Companies that (I think) are like this: Usually, agencies, consulting firms, advisories operating in saturated markets like Corporate Finance
Are these the only categories one can fall into? Broadly, yes.
There may come a time when you find yourself in Approach 3 and wonder how to move to/ respond to a market that is pushing you into Approach 1. The answer is to start investing in distinctiveness in the form of visual brand assets.
Or maybe you want to move from Approach 4 to 3. There’s no getting around building a great product. The moment you zero down on this, your leverage goes up several notches.
So, where do you find yourself now?
And where would you like to begin?
In need of someone to help you figure out where in these approaches you might currently fall, and how to move from one to another? Reach out to me to discuss a workshop.