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Branding

By Ann Lee, Ann Lee & Associates

What is Branding?

Branding is the buzzword of the new millennium. It is to this decade, what positioning and differentiation were to the eighties and nineties.

My simplified definition of a brand is “what people say about you when you're not around.”

Your brand is the collection of attitudes, perceptions and beliefs that both customers and non-customers hold about your bank. It is much more than just your logo or the services you offer, but rather how everyone views everything about you.

According to the American Marketing Association (AMA), the primary purpose of branding is “to establish a meaningful, differentiated presence that will increase the ability to attract and retain loyal customers and improve marketplace ability.”

The meaningful and differentiated presence is what we referred to as positioning in the past. So, it is safe to say that a strong brand relies on sound positioning.

Creating Your Brand

Creating a relevant brand position is not a simple task. It takes commitment from top management. It takes intensive observation, thought, time and work. It sometimes takes thinking outside the box. It takes establishing controls and measurement. And it always takes relentless dedication.

Many institutions think they already have a strong brand and a clearly defined market position. But just a few minutes spent online reviewing competitors' websites will quickly demonstrate that banking has become a commodity business. In short, we're all selling the same things and we're all saying the same things.

One way to start the positioning process is by identifying the type of prospective customers you really want and then deciding what you need to “be” to attract them. How can you alter your products or service lines to offer something better or significantly different than what competitors are offering? Or, at a minimum, how you can deliver the same offerings better, more conveniently or less expensively?

Think of it as the elevator scenario. You're in an elevator standing next to someone who doesn't know you and isn't familiar with your bank. You have about sixty seconds to tell your story. What do you want to sell to that prospective customer and why should he buy it from you?

Think about it and once you have arrived at some good reasons, you'll be on the way to developing worthwhile positioning.

Building Your Brand

To establish a meaningful presence you need to increase recognition and awareness in your target market. Awareness and recognition simply make it easier to sell what you have to sell.

So branding is really about building positive awareness and recognition whether you're a single-point branch or national institution. People simply have to be aware of who you are and what your business stands for, so that they recognize you when they hear your name or see your logo. And the “what you stand for”, needs to provide them with some good reasons (perceived value) to want to do business with you.

While frequency and exposure are critical, quality products or services and a compelling saga are also essential to achieving strong marketing ROI. Pick the products or services that you deliver best and then tell your story over and over again. Brand equity is built over a long period of time through consistency and repetition.

Building your brand encompasses the associations created over time by all those who come in contact with your institution-from the services you provide, to the marketing materials you create, to the approach your employees take with current and potential customers. The strongest brands represent organizations that consistently deliver on their promises of perceived value in both functional and emotional benefits.

The Risks

A brand promise can be unmasked as a hollow boast at almost any point during a customer's experience with your bank. Each interaction represents a “moment of truth” that can enhance or erode the brand, heighten or undermine customer loyalty and affect business results for better or worse.

Each time a person uses your ATMs, calls the bank, visits your website, sees your ads or picks up a coffee cup in your branch, he is interacting with your brand. Consistently positive interactions with your brand create brand loyalty, build brand equity and increase your opportunities for cross-selling.

Top branding organizations are relentless about their brands, and they brand holistically. Consistency is king. Protecting the integrity of your brand takes careful coordination at every customer touchpoint and in every form or communication-from your logo and messaging to your graphics and collateral and throughout all forms of advertising and public relations.

In order to create a strong brand and consistently deliver on its promise, your brand must be a key component of the bank's long term vision and strategic plan. It must be fully understood and passionately supported by senior management.

The Rewards

The most significant benefit of developing and maintaining a strong brand is increased profits. An investment in branding provides exponential return by enhancing customer relationships, increasing perceived value and encouraging loyalty and trust-which all work together to increase sales and margins. When done right, strategic brand building can be your single most powerful tool to build a competitive advantage and increase market share.

When a bank invests in its brand, it invests in its future.