I received a letter from Tesco pet insurance about the renewal of our policy. The letter suggested an upgrade of the policy and mentioned just on the side the new monthly fee. It was more than double to what I signed up for. I did the ‘usual’ shopping around and found a cheaper offer – with the same or nearly the same benefits. I called and spoke to a chap to cancel the policy and he mentioned that I did have the ‘save 50%’ special offer last year. Sadly, by then my mind was made up. Why do I mention this?
In my mind, the brand communication went wrong in a few ways. The letter of renewal arrived late and gave hardly any time to consider. It mentioned nowhere the reason for the dramatic increase – e.g. the special offer from the last year – or any reasons why I should renew. It was written in typical lawyers talk mixed with marketing speech and fact I had to hunt down where the actual monthly costs were displayed (ok, so I am blind to right hand column advertising on google and facebook) made the whole experience annoying.
The Tesco brand positions itself as great value for money – their policy communications did not get that brand promise across. What would I change?
Be nice to your existing customers! They have no real reason to stay loyal other than being happy with your product and service – and with the way you treat them. Whether you are a small business or Tesco, customers today expect to feel valued and not just like sheep led along…
Be upfront! Explain your charges, why they occur, why they increase, what the benefits are. You can always use the psychology of feeling loss much more than feeling a gain and highlight what the client will miss out on if they leave. Most importantly though, don’t try to hide any money issues.
Be creative! How nice would it have been to have received a letter or some other form of communication from Tesco a couple of months before the anniversary, perhaps something pet related, telling me ‘thank you’ (especially since I never made a successful claim) and told me about the new fees well in advance with reasons why and future benefits of staying on. (No claims policy comes to mind!!!) Even some clubcard offer relating to pets would have made a difference and not cost them much.
Be flexible! With rate increases comes frustration. Try to find a solution that keeps the customer happy and keeps you as their service provider. Perhaps you can tailor the service to match their budget even if it means they lose some benefits. They may prefer that to moving company. It’s at least worth a try.
Stay nice. That’s the only thing I can’t complain about Tesco. The chap on the phone remained nice and friendly and did not try to persuade me as I have experienced with other insurances in the past. If someone has made their mind up and wants to leave, let them go. They will be more likely to keep you in good stead than trying to convince them with more sales banter.
I shall await the new brand experience offered by Tesco’s competitor! Perhaps it will make me stay another year.
We are all just too familiar with the tempting voice of adverts and the seductive messages of point of sale installations that convince us to part with our money and feel good about it. This is one of the finest artforms of brand advertising and marketing – but there is also the danger to turn an incredible statement into a incredibly laughable one that could have the opposite effect.
I am not saying that nanoblur is not working or not flying off the shelves at Boots, but their small print had the opposite effect of reassuring and supporting their sales pitch. 45 people tested it and therefore it must be true that it makes skin flawless in seconds? Would it really have cost them that much to at least do 100? Better more? (I have no idea about clinical studies so perhaps it is unachievable for brands to do that but it seems such a small number of people, I wonder if they were better off making their statement a bit less incredible but not having to spoil it with ASA ruling copy that makes it sound a touch ridiculous.
The Vauxhall Lifetime Warranty adverts sparked off complaints about being misleading and were subsequently forced to change their campaign following a ruling by the Advertising Standards Authority.
Quite a different area of ‘business’, the church of Nottingham had to change a claim they were making in one of their flyers.
Dennis Penaluna from the Nottingham Secular Society said he was shocked by the leaflet.
“I couldn’t believe the overarching, ridiculous, unfounded claims they were making. They can’t be substantiated,” he said. “It’s a dangerous nonsense. People who are ill or vulnerable can be easily persuaded. They will grasp at anything.” Read an article about this on the bbc news website.
Another brand that promised more than it could keep is Baby Einstein, a Disney product extension targeting babies and toddlers giving parents the idea that the DVDs are educational. “There is evidence to show that screen based activity is bad for the brain.” says Pippa Smith, founder of lobby group Mediamarch. The company decided to offer parents a re-fund for DVDs purchased in the last 5 years – certainly not a great indicator for success.
Similarly, Heinz was reprimanded following ‘ridiculous claims’ in their infant formula ads. They said that its product could support the growth of infant brains, bodies and immune systems. The ad voiced that each child needs a “special combination of nutrients to sustain the incredible growth in its brain, body and immune system.” It added that Heinz had produced Nurture specifically in order to “provide for those three essential aspects of growth.” The commercial concluded by saying that Nurture would help “nourish, protect and develop your baby.”
The ASA rejected Heinz’s claims and ruled that the advert falsely implied specific health benefits instead of general nutritional content. The ASA said: “We concluded, therefore, that the claim was unsubstantiated and the ad was unacceptable.”
So, it seems that whilst it is understandably tempting to use provocative and attention-grabbing headlines in brand advertising, there are a few things to bear in mind.
Be realistic about what you are promising and what you can deliver
Don’t rely on great statements without backing them up with great evidence
Don’t patronise your customers – respect their knowledge and experience even if you are the expert in your field
Use marketing methods, such as money back guarantees, as a way to instill confidence in a purchase
Be clear, simple and concise in your brand messages and offerings (KISS your Brand)
Be creative in your copy. In fact, be amazing. Use engaging details to tell your brand story and shine a spotlight on how your brand is different – but be honest
I may be on my own feeling like I am being taken for a fool with the ‘nanoblur 10 years younger claim’, but if I part with £20 for a small tub of face cream, I would prefer to be reassured by more than a busload of people. As it is, the product has settled as nanoblurb in my mind and makes me smile, but not buy it.
Kodak is the latest brand struggling for cash and has filed for bankruptcy protection. The photographic pioneer has over 130 years history – and they seemed to have made a successful transition from old school film and cameras to digital when digital cameras started to go mainstream – with the Kodak gallery as just one example of building brand relations with consumers and offering new products and services online. The problem there is a crowded market – newer and more modern looking versions of online digital photo printing companies have emerged and even the rather dull looking Picassa seems to have much more appeal. There are the obvious competitors including snapfish, photobox, digitalab and bonusprint and of course the almighty iPhoto.
It seems that their aspiration to become the new digital printing specialist, and their strategy to sell printers, even without making any money on them, to later gain profits on the sale and servicing of inks and parts, seems to have over stretched them somewhat and they are now trying to shed assets they can spare.
Loosing that Kodak moment
It may now cost them dearly that they did not focus more on increasing their brand value – more than 10 years ago, branding specialist Interbrand ranked Kodak number 16 of the most valuable brands in the world, estimated to be worth around $14.8 billion. Since then, the Kodak brand has fallen in both rank and value. 4 years ago it no longer appeared in the top 300 list with an estimated value of only $3.3 billion.
I am also not convinced by their strategy to become a digital printing specialist – is this really a future-proof market? With the emerging tablet market, reading news, books, etc and viewing photos has become so much simpler and more accessible already, with progress in the digital market how much of a need to print will there be?
Would it not be wiser to use the brand value they still possess and team up with another company to create something innovative and different, still capturing ‘that Kodak moment’?
We will have to see what they do about it now and if this latest move will help them to re-invent themselves with a good enough market share to thrive once again.
An innovation race – can Filofax still compete?
I came across Filofax a couple of months ago when browsing through WHSmiths and I thought ‘must research what their brand strategy is as they have become largely irrelevant with the rise of smartphones and tablets as digital organisers and diaries…’ And just as I sit down now to look into it, I am finding press releases regarding their new strategy. It all sounds very clever and positive… but it does make me wonder if it is a short term fix without a long term vision for the brand.
Jon Morse at Filofax says in an interview:
“With so many working days spent at a computer, we have seen many customers crave the tactile feel of pen to paper. Filofax offers the user a quiet, private moment and a solid hard copy of personal information.
Our strategy is not to compete with technological advances, but rather, to position ourselves as a fashionable, luxury paper-based product for those moments away from the screen. We find many customers using both a smartphone and an organiser.”
Gordon Presly, CEO of the Filofax Group, comments, “Our collaboration with Temperley London for Filofax was a natural development given Alice has a real passion for Filofax and importantly shares many of the qualities of our customers, as a creative individual, successful business woman and mother with a busy and fulfilled personal and work life. We were intrigued to give Alice full rein to create a bespoke collection that would give birth to her vision of the perfect Filofax for others to use when juggling busy lives, yet with a desire to look stylish. We take a long term view to our partnership with Temperley London as part of a wider fashion focused strategy, positioning Filofax as the ultimate lifestyle accessory for creative and self-fulfilled individuals.”
It seems an interesting repositioning strategy to aim at the luxury market – and collaborating with fashion designers such as Alice Temperley is an interesting interpretation of that strategy and allows to set a higher price point to the diaries, creating desire and establishing it as a sort of fashionista insider must have accessory. If this catches on with the young generation, and if their business can be profitable within the luxury sector (perhaps they could where they may sell less but for a much higher price and more margin), it may all be just lovely.
But I am a bit doubtful about the longevity of this strategy. Smartphones won’t go away any time soon. They come accompanied by an army of accessories – some luxury, some tat, so the ‘bespoke’ need in smartphone users is easily satisfied among a lot of different market segments.
Finding a point of difference
What does a Filofax do that a smartphone or tablet app won’t (other than the feel of the paper that you will curse when you have left it at your favourite hangout or in a taxi after a champagne reception at an exclusive art gallery…)?
With applications such as Evernote, where you can collect voice memos, notes, photos, videos, anything really and it is synced to your computer, with those invited to share the documents, and backed up, I can’t shake the suspicion that Filofax is going to be a victim of technology just like so many other brands that have vanished from our high street.
It is amazing how the brand has managed (and keeps doing so) to cling on to the executive and gift market – one can hardly describe this with ‘by re-inventing themselves’. It is more of a sense of familiarity, tradition and safe choice for the ‘more mature’ generation, but if they are sufficiently enthused brand ambassadors to pass on that passion for a paper diary to the next generation is to be seen. This Filofax site gives some great insight into the passion of the brand followers.
Hesitation – for and against the brand
I can’t see myself carrying one around a Filofax as well as my smart phone. It used to be quicker to just leaf through a paper diary and jot a note down but the latest models of smartphones are so interactive and easy to use, it takes longer to find a pen that writes than it takes to instruct SIRI.
As for the ‘creative individual’ – I do not leave the house without one paper based product which I use for gathering thoughts and observations; my sketchbook. But it would be hopeless as a diary and I would not see the point in spending a premium on it as a fashion item. When it comes to a sketchbook, for me personally, it is content over form.
However, there is the element of social and business etiquette where it may be frowned upon to pull out your iPhone or Blackberry during a consultancy meeting or a presentation to a client, but it would be acceptable to scribble notes in a branded, leather-bound diary. This is where I still see relevance for the product, and certainly for the brand, given that they offer well-designed, bespokable inserts to the leather cases.
So, what could a long-term strategy be?
Could they bring back production to the UK and make it a true luxury brand that becomes an executive status symbol? Perhaps they should also re-visit their website design to create a more luxury feel and to better translate their current brand strategy.
Certainly the luxury brands have many advantages of premium and budget brands. They are less likely to be hit by economic fluctuations. They play with the human basic instinct – which include ‘envy’ in some shape or form. They become status symbols we use to align ourselves with a certain group of people we want to belong to – they are tribal and due to the price factor this can be a very exclusive tribe that is a great aspiration for those not part of it.
Linking to the fashion industry – and making it more about the ‘outside’ and working on the ‘inside’ to be extremely customisable and clever could be a good strategy after all.
Another thought for long-term innovation
Whilst I would not invest in Filofax even with their new strategy, here is a thought that I find much more exciting (and challenging of course). Mr Letts develops a product with an Android tablet that is created to service future Filofax lovers – with bespoke diary keeping software.
That way, the leather bound, high quality, board room suitable tablet cases would be the link to the old. The bespoke software – it will need to be excellent – would be the link to the new. Bespoke collaborations are nothing new – remember SMART when Mercedes-Benz has not yet pulled out and the Blackberry Porsche is just a recent example.
It will be interesting to see where the brand is in a year’s time – and if they want to hire me, I am available from March onwards 😉
This subject really deserves a much more detailed post, but sharing just one example of how a strategy can translate in the most unexpected areas of a business and aid a brand to stand out, here is a snapshot of a busy display at TK Maxx ‘showcasing’ a selection of kitchen utensils.
Circulon, known for their non-stick cooking ware, are using aluminium labels embossed with their logo type instead of the typical card or paper versions from competitors. The result: Instant visual differentiation and recognition. But there is more to it – this little detail also strengthens the consumer’s attitude towards the brand and adds to their brand experience.
(Clearly, the guys from Circulon are all about quality and design if they pay that much attention to even just the label of their product. It must be trustworthy and reliable.)
It will have added some costs to the production, no doubt about that, and in the volumes a company of that size this will be insignificant, so is this a good example for branding for SMEs? I believe so because the details don’t have to cost the world – but they can make all the difference. Whether you are paying particular attention to which paper you use for your stationery, what colour envelopes you send your invoices in or if the blinds in your meeting room reflect your brand identity – there are lots of ways to bring your brand to life and to share your values and beliefs.