Most companies will never become great brands. It’s an unfortunate truth. I don’t measure greatness by size, profitability, or number of office locations. While these may be byproducts of great companies, they are not measures of great brands.
Great brands are those companies who truly understand that they exist at the pleasure of their customers. Their culture, values, management, compensation, products and services, and total business strategies are all designed around this understanding.
It’s a massive charge for any company, which is why so few ever become truly great brands. Many aspire to. But too many lack the understanding, vision and commitment to get there. In today’s ever-changing, hyper-competitive business environment, great brands find ways to challenge status quo, readily accept change, and reinvent themselves. Those slow to embrace these values are left behind. To die quickly, or slowly fade away.
I’ve had juxtaposed experiences of late which clearly demonstrate this reality. As my wife and I are planning to build a home within the next couple of years, we’ve just recently begun our search for a builder. I’ve quickly learned that home builders, in general, are especially slow to understand today’s buyer, what they value, and how to earn their trust. They’ve essentially ignored the basic fundamentals of branding. Or common sense for that matter. This is puzzling coming from a discipline which relies so heavily on referrals and a good name. Consider the following two scenarios:
Last month, a local building company (who will remain unnamed) hosted an open house at one of their custom homes. My wife and I attended with my brother and sister-in-law, who are also in the market for a builder. The house was beautiful, as expected. A big, open floor plan. Exotic hardwoods. Granite counters. A refreshing color palette. Very well appointed. In the kitchen were deli trays, desserts and wine for guests. A nice touch.
But it ended there.
We noticed immediately that their staff, the company’s own employees who were supposed to be attending to guests, were huddled together in a corner of the kitchen while drinking the wine which had not yet been made accessible to their guests. This was the first strike. The second came as a representative of the company delivered one of the worst presentations I’ve ever had the misfortune to endure. In an effort to hide his discomfort in speaking to an audience, he played a previously recorded welcome message — of himself — on a plasma display, while he stared blankly at the crowd of 30+ people, remote in hand. This was not the confidence that this audience was seeking as they considered one of the biggest investments they would ever make. Strike two.
But it doesn’t end there.
Several weeks later my sister-in-law received a forwarded email from another couple — friends of theirs who had also attended the open house that weekend. They had since had a couple meetings with this same builder to discuss potential plans and budget for their new home, and ultimately determine if this builder was a good fit. After receiving ballpark estimates from the builder, the couple decided that building a new home was not a reasonable investment for them at that time. They sent a very kind, professional letter of thanks and regret to the builder, indicating that they would certainly be back in touch in the future if their circumstances changed. The owner of the company then provided an email response, excerpts of which follow:
He opened by prefacing why his email message would have a negative tone, stating “my reply to you will have a flavor of being somewhat jaded because of this not being the first time that this has happened…” He then went on to suggest that he couldn’t help but feel bitter about them wasting his time, and that he has “a huge problem understanding how people don’t know where they are in life before they start out on this journey and then suddenly we get a quick John Doe letter after an exhaustive journey on our part.”
And then came his closing.
“If in a few years down the road you decide to build please do not call us or involve us. If you have done this once, you are most likely to do the same thing again and we don’t want to be any part of it. We are too busy to be involved with things like this.”
Strike three. Yep. Right from the owner. He singlehandedly crippled his brand in one thoughtless, reactive email. That same email has now been passed on to several people who may be in the market for new construction. Like us. And my brother and sister-in-law. Guess who was just removed from our prospect list? Let’s face it. Good design is a commodity. We like to think of it as table stakes. It’s what keeps you in the game. In this case, the builder has a well designed (and presumably well built) home. Table stakes. What they should be selling is the relationship, trust, integrity, and the experience that you will have in building your dream home with them. It’s opportunities like this where great brands tap into our emotions. They build trust and loyalty. That’s the product they should be selling.
But this particular builder doesn’t understand, or care to understand, their audience. They’ve neglected to appreciate this as one of most significant investments the buyer would make in their lifetime, and instead focused on their own insignificant investment of time.
Compare this scenario to one we had previously with another builder, Angelo DiPietro. We hadn’t yet secured a lot on which to build, and were spending a fair amount of time trying to narrow the developments we would consider. After taking us through a tour of a couple of his homes, Angelo, who is also the owner, took an evening of his own time to drive us through 5-7 new developments to identify ideal lots. As we walked each lot, he made suggestions and pointed out concerns that he felt we should consider. This was done with absolutely no commitment from us. He also spent time doing background checks on select developments, and making recommendations based on his findings and our expectations. This is someone who clearly gets it. This is the level of service and value that we, as consumers, should expect today. Our buying decisions are based on two core factors: trust and emotion. Angelo was conscious of both.
That’s how you build brand loyalty.
Remember, great brands are those companies who truly understand that they exist at the pleasure of their customers.
Whether they realize it or not, all businesses have a brand. That brand is determined by each and every experience, good or bad, that their clients and prospects have with them. How they handle crisis or conflict often goes farther than all other efforts they can make. Relationship and integrity of service is key, especially with service-based brands. Construction is a service-based brand, and one that relies heavily on referrals and reputation. Word of mouth marketing is a very powerful tool — one that every builder should carry in their box. Handled with care and respect, it has tremendous potential for building opportunity and positive returns. Neglected, it has equal potential to tear a brand apart.