Interim Executive Question: How to Establish B2B Brands

Question: How do business-to-business companies go about establishing their brand identity and loyalty?

Businesses commonly assume that their marketing department will communicate their brand through advertising, literature, and promotional activities. While these are important, they are just one small dimension of the totality of communication and interaction that defines the overall customer experience. Indeed, if this was the only effort to implement and communicate a brand identity and build brand loyalty, then by definition it will conflict with all the other communications systems that already exist in the company. This will contribute new sources of communication inconsistencies (“noise”), add new costs to overcome them, and reduce the return on the investment in defining and developing the brand identity in the first place. Clearly the brand promise should be defined and measured across all of the communications systems of the company, including internal reward and recognition systems to encourage employee behavior in accordance with the brand values.

For example, have you ever heard in your business that the customer was sold something that differs from your ability to deliver? These can be product/service features, business terms, implementation schedules, service levels, all apparently promised by a sales person, and yet not consistent with the current capability of the business to deliver. In business to business customer relationships, the goal is to develop a long term sustained relationship with the customer. The longer the customer is retained, generally the more profitable the relationship, and the greater the ability to continue to produce revenue from that customer. What if, at the start of the relationship, the product or service does not do what the customer expected, or the business terms or billing processes are cumbersome and prove difficult to comply with, or the service levels are not consistent with expectations, or the product was not implemented according to the schedule that was originally promised? Each one of these issues requires energy and investment by the business to overcome in order to get the customer on an acceptable long term path, albeit with slightly reset expectations. The customer has already experienced significant inconsistencies between the brand promise and the experience of that promise, before the relationship really gets under way. The cost of building brand loyalty with that customer is very high and efforts will continue to be expended over a long period of time as the company goes through extraordinary measures to restore its reputation with that customer and attempt to get the customer’s experience closer to the brand promise. Even simple failures can directly impact the reputation of the business, and the cost of overcoming them. There are many other reasons for the brand promise to be broken without any specific system, product or service experiencing any failure. The result is damaging and costly on brand loyalty, brand efficiency, and the long term cost of repairing and rebuilding the relationship, thus draining resources away from productive work and the bottom line.

by Patrick Smyth

To learn more about Interim Marketing Executives visit OneAccord , email us at info(at)oneaccordpartners.com, or call us at 425.646.2800.

Photo credit

Interim Executive Question: Is Branding Important for B2B?

What makes branding unique for business-to-business companies and is it as important for them as branding is for consumer product companies?

If your business provides products and services to other businesses, you can achieve the benefits of a strong brand identity in customer loyalty, buying preferences, and referrals to other customers. However, the relationship with your customer is far more complex than when compared with consumer product relationships. Business to business service companies must go above and beyond just satisfying the client’s transactional needs to create positive brand loyalty over time. Business to business brand loyalty has less to do with spending money to build awareness than being committed to a complete and systematic and relentless dedication to an idea that is expressed in every way that touches a customer by every employee, consistently across all communication channels, and sustained over a long period of time. Business to business companies often stumble when they fail to align all of their customer facing operational processes and people with the brand promise of the company.

Customers of business to business firms believe that every form of communication they receive from your business, and every interaction that they have with your company, of every type, all combine to form the sum of their customer service experience. Moreover, this experience endures over time, such that errors committed in the past will always remain part of the customer’s perception of their experience with the business, regardless of how well the business may be performing at present. Many companies mistakenly assume that as long as they have highly responsive customer service centers responding to customer calls and resolving issues quickly, then customers will be happy with their business overall. Recognizing the importance of delivering an experience that is consistent with your brand promise across every touch point with customers is the first step to truly differentiating your business. When all those communications channels are aligned and delivering a consistent experience and message to your customers, then you will have achieved a high level of brand efficiency. When any of these channels fails to deliver on the brand promise, then your brand efficiency decreases. When efficiency decreases, there are direct consequences in customer satisfaction and retention, willingness to buy, direct costs required to repair or rework, and in overall financial performance as vital energy in the form of human and financial capital are redirected to address the deficiencies. When brand efficiency is high, then all systems and people in the company can focus most of their energy to serving the customer better, innovating new solutions, beating the competition, and moving the bottom line up.

Photo by Nick Gray

To learn more about Interim Marketing Executives visit OneAccord , email us at info(at)oneaccordpartners.com, or call us at 425.646.2800.