Why Your Brand Needs To Lead
Dec 29th, 2009 by David Svet
How do you choose one brand over another? It’s a complicated question. Do you always buy the leading brand? Businesses spend a fortune trying to convince us that they are the one to buy, but there is only one leader in each category. Does the leader really have an advantage? Yes, sometimes.
Spur Communications’ blog SpurSpectives covers our work in the financial, philanthropic and community benefit sectors — three fields where it pays to lead. Yes, banks, investment advisors, foundations, and community benefit (nonprofit) organizations all need to consider leading in at least one dimension of their field if they are to thrive. Why? Because the deciding factor for closing the sale in each of these sectors is category leadership, or top of mind.
It all comes down to comparison. In financial services the benefits are intangible. A leading interest rate may attract a few customers, but they will be fickle. Most customers will be attracted to the brand that is top of mind. Internet banking and online investing exacerbate the situation. They make it very easy for rate shoppers, but flood the market for everyone else. The result? We go with the recognized name.
When it comes to philanthropy, how do you choose an organization to support? The comparison is very difficult when examining two competing organizations. Which diaper bank is better? Is the domestic violence shelter on the east side better than the one on the west side? The advantages of one over the other cannot easily be proven. The result? We choose the brand name leader, and it costs the second place organization dearly.
So, what’s an also ran to do? Draw a line in the sand. Take a hard look at yourself in the mirror and figure out what you are really good at doing. Not only really good, what do you do that makes you the ONLY ONE. Because when you can say we are the only ____ that ____, you will be able to lead that category. Look at your competitors. Who’s the big dog? Chances are they are the only ____ that ____.
Photo: http://www.flickr.com/photos/34338566@N08/ / CC BY 2.0
