Increasing your brandwidth: Lessons from megabrands

You can stop reading if any of your clients has your name tattooed on an arm — as is the case with devoted Harley Davidson fans.
Likewise, you can skip ahead if clients work with you even though they prefer the offerings of the competitor down the street — as is the case with Coca-Cola loyalists who buy Coke even though they think Pepsi tastes better.
And last, you can ignore all of this if you’re viewed as an innovator and visionary in the staid world of financial services — à la Apple’s positioning in a world of boring beige boxes.
For the rest of us, a better understanding of the power of branding — and the influence it can exert to mold people’s perception of us — is critical to expanding a practice and building a loyal and profitable clientele, because just like Harley, Apple and Coca-Cola, you need to think about yourself as a product that people choose to purchase — or not purchase.
You’re a product with distinct features and benefits, and a series of skills and experience that clients and prospects value.
Unfortunately, there are a lot of advisers out there with simi-
lar features, benefits, skills and experience.
So your challenge is to identify your key attributes, define your image, and aggressively and consistently position yourself as superior to the competition.
The megabrands are masters of this, and they typically focus their marketing efforts on delivering value (as defined by the customer), creating mind share and developing an enterprisewide obsessive attention to detail that supports their brand.
The same elements are equally critical components of building your personal I-brand.
Your value proposition. The first, and perhaps most important, step in differentiating yourself is being able to identify and articulate the value that clients receive from working with you.
Sounds easy enough until you realize that what you think you’re selling may not be what the customer is actually buying.
The difference can be expressed as “what you do” versus “the business you’re in.”
Consider a company such as Michelin. What it does is manufacture tires, but it is in the safety business. Similarly, Rolex sells watches, but it is in the prestige business.
So what does this mean to you? It means that the eyes of prospects and clients are apt to glaze over when you describe yourself as a financial adviser, investment consultant or, the appellation du jour, life planner.
Those are functional titles that don’t get to the heart of how you benefit your customers.
Think about the alternatives. How much more interested and engaged might people be if you said, “I invest my clients’ money as though it were my own” or “I enable my clients to have a more rewarding and comfortable retirement.”
In developing your value proposition, it is important to do a thorough self-assessment.
Consider it a job interview of yourself and think about the following questions: What are you good at? What makes you unique — in other words, how are you different from the adviser down the street? What are you best known for? How do you go “above and beyond” for your clients?
But don’t stop with your self-assessment. Also consider how others see you.
How would your clients describe you?
Of the last few clients who moved their accounts from you, what were the primary drivers of their decision to leave?
Think about why the last few clients who opened accounts chose you.
And most important, how would you want your clients to describe you?
The key is taking the time to define exactly why clients come to you and why they stay with you.
Don’t try to be all things to all people, because that will only dilute your brand.
Instead, identify your No. 1 strength, your most noteworthy personal trait and the single most important way that you add unique value — and approach it all from the customer’s viewpoint.
Capturing mind share. A key element of branding is the seller’s promise to the buyer and the fulfillment of that promise.
The promise can be based on quality, service or other factors, but it plays a major role in capturing mind share and determining how the product or service is positioned and perceived by the customer.
To use another megabrand analogy, let’s think about non-aspirin pain relievers. Consider Tylenol and its generic counterparts.
They’re identical in composition, however Tylenol usually costs about twice as much as the generic version.
Despite that cost differential, Tylenol outsells every generic competitor combined.
Why is that? Because people associate Tylenol with quality, they have confidence in the product.
They trust the manufacturer. They don’t mind paying more for perceived quality. And the purchase makes them feel good about themselves.
Let’s extend the Tylenol example to your business. What do you focus on? What do you want to be known for?
For example, if your business is focused on soon-to-retire baby boomers, think about how you can strengthen that idea with your clients so that you are top of mind when they’re thinking about planning for retirement.
Consider a retiree’s post-
retirement world and how you can add value as they transition into this phase of their life.
Could you create a way to capture information not only about their retirement income needs but also about their desired retirement lifestyle?
Should you be an expert in what to look for in a retirement community?
Maybe you should strengthen your estate planning knowledge. Or become more knowledgeable about health savings accounts or other health-care-related topics, which are a big concern for older clients.
No matter what you decide, the important takeaway is that you must approach your brand and your business from your client’s viewpoint in order to maximize the perceived value that clients get from you.
Obsession with details. Effective branding is composed of a thousand details that, in the aggregate, capture the hearts, minds and wallets of your prospects and customers.
Apple Computer Inc. of Cupertino, Calif., is the perfect example of how this works. Simply hearing the Apple name conjures up a variety of images about what the company stands for.
These images would include the Apple logo, the brightly colored iMac and the ubiquitous iPod.
None of these images in isolation equals the Apple brand, but as a whole, they form a powerful and cohesive brand story.
Part of the reason the Apple brand is so powerful is the
maniacal oversight of Steve Jobs, a legendary, micromanaging perfectionist.
What he understands, and what everyone can learn from him, is that effective branding is about the total customer experience.
It’s about getting all the little things done — effectively — all the time.
Everything matters. Every single thing you do — or don’t do — communicates the value and character of your personal brand: phone calls, e-mail, meetings, letterhead, social interaction, timeliness, appearance and how well your marketing assistant/support person performs.
Think about how your clients interact with every aspect of your firm and how their perceptions may or may not align with your newly established brand image.
Consider your firm’s strengths, as well as weaknesses, in matching your brand promise.
If a disconnect exists, it needs to be addressed or your brand won’t ring true.
Just like the megabrands, staying true to your strengths and staying close to your clients will help you create an I-brand that will clearly differentiate you in the market.
The bottom line is that if you sweat the big stuff and the small stuff, then attracting and keeping customers will be no sweat at all.
Phil Fragasso is executive vice president of marketing for Rydex Investments in Rockville, Md.

Related Topics: Practice Management