The concept of branding comes from the good ol’ days when distinguishing cattle, horses, and sheep was a necessity. Not only did such ear piercing and permanent skin burning make it easier to categorize and identify which is which, it also made the lives of livestock rustlers somewhat harder.
The origin of the word branding, however, comes from German language. As a noun, der Brand doesn’t have a counterpart in English, though. The word means burning, or on fire, but as a noun. So when you walk by your neighbor’s house and you see it in flames, you scream from the top of your lungs: “Brand! Hilfe! Brand!”
After the neighboring residents carrying buckets full of water are finished scurrying around, what’s left of the building will etch a permanent mark in your memory. Depending on your relationship with the neighbor, the carvings left by der Brand may range from sorrow to jubilation.
An agony of a mooing cow, scampering neighbors, owners jumping inside the inferno in a futile attempt to save anything and everything at once — that’s branding as a process; in a nutshell.
Someone will have to accept the role of an arsonist
Jokes aside, the point I’m trying to make here: you should expect the branding process to be painful. I don’t see a way around that. Be prepared — someone will have to accept the role of an arsonist with all the ensuing consequences, too. The minimum result of proper branding should be a mark that won’t come off easily.
From a typical buyer’s perspective, there are many interchangeable firms that do exactly what you do. A brand is supposed to limit the number of choices. In a sense, a brand is a shortcut to categorization and ranking. As Marty Neumeier puts it: brand is “a customer’s gut feeling about a product, service, or a company. It’s not what you say it is, it’s what they say it is.”
In this article, I will take two opposite positions: that of a buyer and a seller of branding services. A typical seller will be a digital agency, or a branding agency, or a marketing agency, or a design agency — any marketing firm that offers branding. A typical buyer will be an accounting firm (tax, audit, finance, advisory).
Many branding agencies have trouble conveying to their clients why branding is of import. Particularly challenging is ROI calculation. On the other hand, many buyers (other professional service firms) have doubts about the necessity of branding per se; and rightly so.
Why pick these two as opposites? Well, it is often the case that agency folks are high in trait openness, are innovative, and creative. If I say: “That marketing agency is very creative,” you will think (mostly) positive things. Whereas, if I say: “That one is a very creative accountant,” that statement might stir images of shells, offshores, SBF, FTX, and QuickBooks used to manage billions of dollars. Because the two types often find it hard to get one another, it is a perfect pair to dissect.
Common reasons why branding is good for business
Let’s be clear about definitions first. Branding is a process which includes visual identity (brand mark, logo, colors, typography), messaging (copy, slogans, punchlines, elevator pitch), and client experience (CX). In other words, what you see, what you hear (read), and what you experience should help you distinguish vendors and their services.
There are a number of reasons why branding makes sense. There are also some cases where it doesn’t. We’ll start with the former first — an expected position of a digital agency.
Prior to that, however, I should make a note that services are much more challenging to brand than products. You can’t smell, taste, touch, wear, or hold (etc.) services — you can experience them, watch others do that, or listen to someone’s story.
Categorization and ranking
Categorization issue has always been a problem. The more options we have, the harder the choice. More so, according to a paper published in Journal of Personality and Social Psychology, people are more likely to act and are more satisfied with selected options when they had been exposed to fewer choices (Iyengar & Lepper, 2000).
This makes a lot of sense, because how otherwise would you be able to make a choice between many seemingly equal options? Too much entropy, thus anxiety. Therefore, the point of branding is to reduce the number of options. One of the ways of doing that is through categorization and rank ordering.Is this a wolf or a dog
When we encounter something unfamiliar, we immediately want to place it in a mental box — a category. “Is this a wolf or a dog,” and “Is this a big cat or a lynx?” The consequences of petting either entity are quite different. We then want to compare the thing to others in that category, and rank it. “If this thing bites, will I end up dead?” Branding helps with initial categorization and ranking.
Consider visiting a podiatrist for the first time. An unfamiliar doctor and practice. Your initial impressions of the premises, furniture, smell, lighting, the way people are dressed and the way they interact with you will place that practice in a box. For example, “This is an expensive practice for the elite,” or “This is a shack of a practice.” Your service and price expectations will segue from here. The same categorization occurs when you meet someone at a conference (outfit, manners), when you look at firm’s website, when you watch their promo materials, etc. Hence, proper branding is good for business.
The power of recognition
Next one is recognition and memory priming. A brand is a shortcut to specific attributes. For example, Ben & Jerry ice cream typically contains more added sugar than Van Leeuwen. At least this might’ve been your experience. Next time you want an ice cream with less sugar content you’d probably go for the latter brand. Conversely, some folks will favor the former brand exactly because of that same attribute.
So when you hear someone mention (e.g.) Arthur Andersen brand, your memory jumps to Enron, scandal, trouble, hearing, fraud and out of business. In which case, it is best to part ways with such a brand, or rebrand it by passing the buck on Arthur.
Conversely, when you find yourself sitting in a full grain leather chair, noticing clean premises with high ceilings, seeing the latest tech, and folks around the office dressed smart, you think to yourself: these guys must be successful. Hence, professional, hard-working, experienced, pricey, expert — the halo effect kicks in. Unthinkable to suspect such a reputable firm being tangled up in shenanigans, isn't it?
Client’s self-image
Another important feature of branding is its association with client’s self-image. “I only buy 5th avenue brands,” — that’s in NYC — “If yours doesn’t have a flagship store there, or in Soho, I’m not interested.” Similarly, back in the day some deep-pocket buyers would have had a certain second-rate attitude toward advertising agencies not being on Madison avenue (NYC again). The point here is that buyers have a certain self-image. Brands that reinforce that image have a better chance of making it into the preferred list.
Here, visual identity plays a huge role. Something that looks luxurious primes expectations of high-end service, quality and price tag as well. And of course, colors, typography, furniture and design in general (graphic, UI/UX, interior) will be key. There is a good reason why folks proudly wear and put on display brand marks of firms they have no affiliation with.
Consider visiting any price leader store to contrast luxury with affordability. Notice your attitudes and expectations.
Firm’s reputation
Reputation is an obvious reason to employ branding. Most of your clients will be coming from word-of-mouth (WoM) channel. Unless you are after price buyers, efficiency, and lowest fees. Since you cannot control WoM, your best bet is to give your current clients (and employees) the right tools to explain to others, in simple terms, what is it that you do and how you’re different.
For the most part, reputation has to be addressed through CX (client experience) and messaging. Sales pitch, talent pitch, elevator pitch are great messaging tools — just to give a few examples. Visual identity isn’t that crucial here. However, you should always abide by the Immutable Law of Common sense: what looks like a duck, walks like a duck, and quacks like a duck . . . shouldn't look like a buck.
Brand as a social contract
Last but not least: brand is akin to social contract. The firm makes a promise on a set of attributes to particular buyers, and clients expect the firm to keep that promise. Branding (like advertising) should be about dramatizing those key attributes to folks that really care about them. That means that prior to branding you need to nail your market positioning: (1) what services we will offer, (2) who we are designing them for, and (3) how we are seriously different from alternatives.
Here is an example. I remember buying Calvin Klein clothes: t-shirts, socks, underwear, polo. Fifteen years ago, the quality was such that I couldn’t wait to buy more. However, clothes were of sufficiently high quality, so I didn’t have to rush the horses. A couple of years ago, I purchased a similar set. The fabric quality plummeted. The contract has been broken. As a result, I’m not even considering CK as an option these days.
Have you ever seen a line forming in front of a store because they’ve changed their logo?
The above points are essentially that which digital agencies should use to advocate the necessity of branding. All the creative BS about transformational journeys, unique brand personalities, unlocking potential, hypothetical (far) future brand equity that no one can reliable quantify or guarantee, higher overall marketing ROI are all laughable propositions. This will only work on desperate or confused buyers that have cash to burn. Well, maybe on other agencies who themselves believe in this stuff.
Agencies are supposed to believe in their own stuff, too. However, how many marketing firms themselves have a recognizable brand everyone has heard of? Three? Unless you work in a creative space, would you be able to name five digital agencies from the top of your head? I find it odd that so many doctors themselves refuse to take their own medicine.
To put out this fire with gasoline: I have never seen a line miraculously form in front of a store because they’ve changed their logo. Never heard about it either. Let me know if you did.
Now that my rant is over, I have to confess: I’m not saying these branding services are superfluous. It’s just that they aren’t as critical as those who sell them wish they were. Of course, the more branding, the merrier. However, there must be a clear understanding about how much, when, and why. And if you are just dipping your toes in branding, it’s best to separate the wheat from the chaff from the get-go.
Why professional firms have their doubts about branding?
The one area most professional firms intuitively understand the benefits of branding is probably self-esteem. Facilitated through visual identity, folks see the value of looking consistent, professional, contemporary, and on par with their clientele as well as competition. It’s akin to dressing up for a fundraising ball. You’ll dance with prospects, and you’d better look, smell, speak, and dance well.
Dancing with prospects, you’d better look and smell well.
What I feel hasn’t been sufficiently articulated about visual identity is how it can accentuate specific attributes, thus impacting the business. For example, if you are great at acquiring, keeping, and profiting from serving price buyers — those who seek the lowest price — it makes a lot of sense to communicate your low prices through simple colors, premises design (or lack thereof), furniture, and so on.
This allows you to decrease the volume of buyers who seek customization, personal approach, or advisory services. They won’t bother talking to — what they perceive as — a cheap firm unless they aim for the lowest price. By not wasting time on these buyers, you can become even more efficient, thus driving profitability.
Price tag versus psychological benefits
Despite the innate desire to raise ones status, when it comes to price tags for visual identity, the enthusiasm often fades away. Self-esteem isn’t rational. Fees are. The higher the fees for branding, the more rationale to save money. The main doubt, therefore, rests with irreconcilability of the rational and irrational.
Word of mouth issue
Another reason to doubt branding is WoM. What’s the point in spending money on messaging, website or other fluff when none of our clients ever interact with those touchpoints? This is a great argument that goes very deep. At its root is an assumption that WoM will last forever, which it might too, by the way.
An assumption that word-of-mouth will last forever.
If clients visit your office, investing in furniture and interior design makes a lot of sense. Great work conditions are beneficial to employees too. As you’re well aware, both clients and talent spread the word about your organization. However, if they rarely interact with your (e.g.) website, there is little justification for investment. Other than self-esteem of course, or to spite your competitors.
As an accounting firm, you can easily identify all touchpoints, rank order them, and inform your digital agency which branding areas are most critical. Agencies can (and should) offer their POV too, of course.
For example, many CPA firms have client dashboards accessible through website. That’s an amazing area to improve client experience (CX). Not to mention all the files clients can store for free (courtesy of a monthly retainer), while thinking twice about swapping your firm for another. Losing docs and missing out on all the bells and whistles always makes clients tremble.
Return on investment issue
One of the most frequent arguments against (re)branding is lack of clear ROI. To my understanding, there are services where this cannot be quantified. For instance, the Nike’s swoosh brand mark was created be Carolyn Davidson for $35 in 1971. It has been speculated that today the swoosh alone is worth $26 billion. Does this make a valid argument for logo designers’ immense worth? I don’t think so.
If digital agency cannot unequivocally estimate ROI for its services, it shouldn’t prance around pretending that it might. Or claim that today’s investment of a $1,000 will make you billions in the future. By the way, in areas where it’s challenging to estimate ROI, you can calculate the cost of an error instead.
Meeting expectations issue
A similar concern professional firms have is about potential failure. “What if the branding doesn’t meet our expectations?” Of course, the more ambiguous both firms are about those expectations, the less likely these are going to be met. Exceeding expectations is what digital agencies should strive for. But for that to happen, they’d need to be very specific which leaves them little room to wiggle about.
When embarking on rebranding, make sure you’ve stocked up on painkillers.
The painful process
The last point I already eluded to at the outset is the pain of branding. Perhaps folks aren’t aware of this to the fullest extent, but branding is painful. In part, because you’d have to burn off the deadwood. And agencies will find a lot of it to burn. In part, because it isn’t their own deadwood.
Obviously, folks at your firm will be mostly unhappy about it, and will make knee-jerking attempts to put out the fires zooming around, clattering their wooden buckets. Some partners will plunge in that flaming structure to save the baby along with the bathwater. If you embark on rebranding, please make sure you’ve stocked up on painkillers.
When does heavy branding make sense?
By heavy branding I mean throwing money at a furnace to make it burn the brightest for everyone to see. First of all, not everyone is your client; and never will be. You don’t want every single moth drawn to your flame. There are four buyer types, and attempting to successfully cater to all of them at once (via one brand) is a ridiculously unlikely success proposition.
Heavy branding means throwing money at a furnace to make it burn the brightest
Second, it is worth noting that the consumption frequency plays a huge role here. For example, how often do you buy website design services for your firm? Probably not very often: once every three to five years. Would you be able to name three digital agencies from the top of your head; which one is better? I didn’t think so. Hence, think about how often your clients require your kind of services. The more frequently, the more likely they are aware about all sorts of alternatives.
Agency folks will object: “That’s why we need heavy branding to always stay top of mind!” No you don’t. For that you have advertising, selling, and educating — not branding.
The exception is this. It is an absolute must to invest in heavy branding when you’re selling to high net worth individuals and families (HNWI). This is table stakes. There is an exception to this exception which spans all branding: if you have amazingly scarce services. By scarce I mean two things: (1) in high demand and (2) unavailable elsewhere. In this case, branding doesn’t matter much. Yes, even reputation will be able to withstand a couple of uppercuts.
While your firm is small (< 10 ppl.), the managing partner will be constantly rubbing elbows with folks at the office. With clients too. Therefore, the most important branding for your firm is going to be reputational — because of WoM.
As your firm grows, there will be more pressure from within the firm (mouths to feed) and without (investors, debt) to have a more predictable client and talent pipeline. Partner will no longer be able to spend time with each employee and client as (s)he used to. Branding will have to expand accordingly to account for lack of personal touch. The areas to prioritize will depend on client and talent touchpoints.
Other than that, my suggestion would be to take branding with a grain of salt. Marketing agencies make money selling branding. Therefore, they desperately want it to be more important than it might be for your firm. They aren’t trying to deceive you either. They believe in their work. The effort that goes into branding can be colossal. However, because there are no limits to branding, it has to be restrained.
All in all, I do believe that cumulatively all branding bits contribute to the whole making it greater than the sum of individual parts.
Have you had a successful year? Throw in some extra money into your branding budget. Make sure you’ve rank ordered your touchpoints though first.
The awezzom question of the day:
Will the proposed branding services improve reputation, customer experience, messaging, or firm’s image?
