Standford Financial vs. Ambiguity

Stanford Financial recently ran a new commercial. There were lots of dramatic slow pans blanketed by emotional music. What, according to the commercial, makes Stanford Financial so worthwhile? Why, their people of course!

And what do their people do? A service!

And what is their service? Hard work.

And at what cost does the hard work come? At a value for the client.

And what does that value buy them? Clear vision.

"Welcome to Stanford Financial Group. Hard Work, Clear Vision, Value for the Client."

(Click on the image to see a larger version.)



Not only is their slogan boring, but it says very little about the real value in what Stanford does.

This is an older commercial, but it still says basically the same thing: come to us and we'll treat you better. (Than what, I don't know.)



Everybody wants to believe that they are hard working with a clear vision, providing value for their client. There is nothing remarkable, nor is their anything unique, about Stanford's proposition.

UBS, another financial group, had this to say:

Imagine a global financial firm with the heart and soul of a two-person organization. A world-leading wealth management company that sits down with you to understand your needs and goals. An award winning global investment bank and premier global asset management business dedicated to giving you the most personal attention at every level. You & Us. UBS.



Again, who cares? And is it even believable? A global financial firm with the heart and soul of a two-person organization? Do you know what company has the heart and soul of a two-person organization? A two-person organization.

What makes you unique? Service doesn't make you unique. Everybody has service.

Now let's look at Citibank. They, too, are in the money business, while not the exact same field. Citibank ran a very memorable set of ads that were benefit-driven. They could have talked about how great their services were, but instead they jumped on the "identity theft" issue. Since it was a hot issue, and others had yet to own that concept, Citibank was quite successful at preempting the word(s) in the mind.









Am I suggesting that humor is the only way to portray a point? Hardly. But I am suggesting that companies such as Stanford and UBS should stop being so self-important, contradictory, and/or cliché.

As a final example, let's look at ING Direct. They have revolutionized the banking industry by creating the first branchless bank. They have many wonderful features, like a zero-dollar minimum in your checking account, and offering a "loan" instead of charging service fees if one overdrafts.

People are attracted to features. ING made 9 billion last year on 25% growth. How much of that comes from ING Direct is hard to tell. One thing is for sure, ING Direct and Citibank actually have something unique to offer. If Stanford and UBS have something unique in their arsenal, it certainly isn't conveyed by their advertising.

The lesson is clear here: people want benefits. They want uniqueness. Nobody can own the same word or concept in the mind as another. ING Direct stands for "branch-less," and Citibank stands for "identity theft." UBS and Stanford stand for "service." Both UBS and Stanford are doing quite well, but their lack of focus opens up a gaping hole into which a smart competitor could carve out a profitable niche, exploiting the financial services' lack of positioning.

Sierra Mist vs. Sprite

Sierra Mist announced that they are going to include "an extra burst of flavor" in their beverage. Then, the other foot drops: but only for the summer. What does this mean? It means one of two things:

1) Sierra Mist is fine as is, and doesn't need an extra jolt. Think Classic Coke vs. New Coke.

2) Sierra Mist is actually ripping off their consumers (I know you're out there somewhere...all five of you), and not giving them the best product for their money.

Check out this irrelevant commercial:



Even if people try Sierra Mist with its extra boost, they are unlikely to continue buying once the extra goodness is gone.

Compare this to products that come out with a low price, hoping to get consumers attached to their product. Early on, people are curious, and willing to take a small risk. Then, when the company jacks the price up to that of the competitors, the new brand's sales drop off almost entirely.

Initially, people built a value for the brand in their mind. Brand XYZ water costs $0.99, they think, I'll try it. The next week, it costs $1.79. "Forget you, XYZ," the consumer says, "I'll go back to Evian, thank you very much."

(Those numbers are fictitious and for demonstration purposes only.)

Is Sierra Mist likely to make any headway on Sprite by their "extra boost" (or whatever they call it)? No. And having the likes of Jim Gaffigan and his zany crew only made for fun creative work, plus an ad agency who will likely get a bunch of awards at the One Show. After all, awards for an agency do not equal money in the advertised brand's bank account.

As a side note, when I went to search for "Sierra Mist," I accidentally typed in "Sprite." Talk about category ownership.

Get a Rep

Give consumers a good time with very little commitment on their behalf, and they are more likely to think favorably of you. This animation was done by Alan Becker. He is setting the groundwork for his future, for his career.

After college–after all, he's only 18–he could easily have hundreds of thousands of people viewing his work. That is a nice little selling point when meeting with a design firm or potential clients. It's called a rep. Get a rep and you'll be on your way.


Animator vs. Animation by *alanbecker on deviantART

Best Buy vs. Brown Cows (Seth Godin-ites Unite)

Credit cards float in a sea of unremarkable sameness. Today, I received an offer from Best Buy. If I opened up a credit line through them (via MasterCard), I would receive $25 in Reward Zone certificates.

This came in a mailer for 10-12% off in the entire store. Really? 10-12%? On the back of the mailer, Best Buy proclaimed this to be the "Summer of Wow."

No matter what Best Buy decides to call summer, I will call it the "Summer of I'm Not Going to Use Your 12% Off Coupon."

Compare their offer to Amazon's. Amazon completely stopped advertising and addressed the biggest issue nagging online bookstore nay-sayers: shipping. They have been offering free shipping on every order over $25 since 2003.

What are the results? According to the headline from their April 24, 2007 press release: Amazon.com Announces First Quarter Sales Surpass $3 Billion, up 32% Year over Year -- Operating Profit Grows 38%.

What's more, Amazon has continued to build customer loyalty by being remarkable, with Amazon Prime.

From the same press release: "Amazon Prime, Amazon.com's first-ever membership program, was introduced in February 2005. For a flat membership fee of $79 per year, Amazon Prime members get unlimited, express two-day shipping for free, with no minimum purchase requirement on over a million eligible items sold by Amazon.com. Members can order as late as 6:30 p.m. ET and still get their order the next day for only $3.99 per item, and they can share the benefits of Amazon Prime with up to four family members living in their household."

While Best Buy may be a fantastic business, offers like these are boring and routine. Do something remarkable! Offer me something that makes me run, nay, sprint to your store (but not really, because I'm going to drive). Best Buy is raking in dough left, right, and center. They are a great business model. But they are boring me.

Give people something to talk about, and talk they will. And buzz (which, coincidentally, is the hot new buzzword) can help grow a brand by leaps and bounds.

"You can't hit what you can't see," said a No Fear T-shirt that my friend wore fifteen or so years ago. Best Buy obviously didn't see me when they offered a pitiful 10% off. So they missed the target. Be remarkable! Stand behind your products!

If Best Buy offered free service plans, that would be remarkable. Would it be profitable? One would have to weigh out the options of initial revenue lost versus positive word of mouth, customer loyalty, and future sales.

Apple offers a remarkable version of Best Buy's Geek Sqaud called the Genius Bar. Apple's consumers can meet with Genius Bar employees for free. These are specially trained employees who work solely at the Genius Bar.

Now that is a remarkable concept.

Read up.

Customer Service Is Exciting Never, As Well

There are few times I notice customer service. When it's bad, I tell everybody. When it's great, I maybe tell two people. Don't bet on customer service to save a boring brand. Staples of a good business–quality, honesty, service, and so forth–are not building blocks. They are MUST HAVES...unremarkable must haves.

If you try to describe your business in ten seconds, do any of those words pop up? If so, you probably have a poorly defined brand. And, what's more, you are inviting yourself to war with competing brands. They, too, can easily try to stand for quality or honesty or service. And, in the end, you both can look forward to a giant price war.

Winning on price is not winning at all. As soon as the deals go up in smoke, the customers do as well. Commodity pricing is for commodity items, like toothpaste and deodorant. Ask yourself, do you really want to be in that type of business?

Further, everybody stands for customer service or quality (or at least they believe that they do, but we know better than to believe the hype that United Airlines or GM throws our way, don't we?)

The only time that customer service is remarkable is when it defies expectations. Think Southwest and their policy to automatically put a missed flight into a no-hassle holding period. The money you spent on that flight is immediately available for future flights. Unexpected! It's a nice touch, but it isn't the CORE of the amazing Southwest brand.

Few companies have ever made the very essence of their brand around service. Allow me to introduce to most: Ed Debevic's.

Ed Debevic's is a chain of restaurants that has struggled over the years. According to Wikipedia: The restaurant is most notable for its wait staff who dance on countertops with fun music playing; sometimes the entire staff will stop and sing along. Each waiter or waitress takes on a character not unlike what you might have seen in a movie or TV show of the past. Occasionally you'll get a Flo-like character who'll rip into you good with the insults but it is all in good fun.

The restaurant, originating from Phoenix, AZ in 1984, was a chain that has shriveled up to two locations, both in Illinois. What would have made that chain more successful? Going all the way to the edge (thanks, Seth Godin) and having a restaurant full of surly waiters and waitresses. Dancing waiters and waitresses are OK, but it has been done. An angry wait staff? On purpose? On purpose!

I don't remember if I enjoyed their food, but I did have one of those "Flo-like" waitresses when I went there over ten years ago. And, to this day, I still recommend Ed Debevic's to Chicago-bound friends. Is it for their quality, honesty, or service? No, actually, it's for their lack of service, which, in some weird way, is their service.

Reliable Is Exciting (Not)

I live in Phoenix. Yesterday, July 4th, the dial hit a fancy 120 degrees. Yeah, it's a bit tepid (yes, I'm being vitriolic).

The air conditioning busted on my vehicle a while back. This being the yummy summer, I decided to get it fixed. Since I am newish to the area, I asked a few trusted sources: friends and family. They provided me with a few names and numbers, and off I went, ready to spend big bucks on some very trusted word-of-mouth sources.

The most highly recommended repair shop was Sun Devil Auto. They are a "full-service" or "complete auto care" center. What's more, they have been family owned and operated for 25 years. This not being 1953, I couldn't care less who runs it, a family or a trained seal or a mossy rock. Just fix my truck.

As they looked over my vehicle, I sat in a crude, makeshift waiting area, a swinging arm's length from the counter and the entering/exiting mechanics. The chairs were hard and unforgiving. Strike one.

I wiggled uncomfortably for 45 minutes, reading Seth Godin's inspiring "The Big Moo," listening to Jóhann Jóhannson's equally inspiring album, Dís, on my iPod. Across from me, a middle-aged gentleman clutched to his book, talking to me through my headphones.

"Huh?" I asked him, pulling my headphones from my ears.

"Why are ya in here?" he asked, trying to overcome his obvious boredom with menial conversation.

"Air conditioning, you?"

I forgot what he said. Instead, I decided to do a little impromptu market research.

"Why did you bring your vehicle to Sun Devil Auto?" I asked him.

"Well, they're really reliable. They get the job done."

"Yeah," I waxed, "but reliable is boring. Right now, I want a comfy chair and perhaps a TV on ESPN."

His eyes glazed over. "Yeah, that would be nice."

And then it hit me: reliable is boring. We are no longer in a day and age where 'just doing the job' is enough. To really build a brand, one must stand for something unique in the mind. "Reliable" isn't the word I want from my automotive repair company (but perhaps my parachute company). Sure, I want them to be reliable, but, moreover, I want them to stand for something simply spectacular past that.

After an hour, the customer service rep called me up with my diagnosis. He told me that my repair would cost $1,300 (and then quickly offered me a discount, $1,050), and that my vehicle could be ready in four hours.

I thought. "That seems high. Would you do the labor if I picked up the part myself?"

He turned to a sign on the wall: NO USING CUSTOMER'S PARTS.

Why not? It protects their markup, of course. Consumers are savvy. They see through the smoke and mirrors. Strike two.

Still, at nine in the morning, the temperature had already climbed to 103. I really wanted air conditioning again. "You have a carport service, right? I want to go to the health club just down the street while you work on it."

"No, we don't," he responded, flatly.

"I spoke to someone here two days ago and he said that you did."

"Well, we don't."

Lying to get my business? Strike three.

"Reliable" is a hard word to own in the mind. Nobody would dare take the opposite, calling themselves "unreliable." That is the same reason why brands cannot run on "quality" or "honesty." And what's more, all the "reliable" tags in the world will not scoop your brand from the arms of disaster if your customer service and policies are out of line.

***As a side note, "reliable" is the word owned by Toyota. But they don't just stop there. The Toyota brand is far bigger than simply "reliable." And the "reliable" claim is furthered by the apparent unreliability of GM and Ford. What's more, the Tundra, for example, is the biggest pickup on the road, plus it's reliable. That's a great place to be.***

Why is the waiting room not enjoyable for waiting? Why can't I bring in my own parts? Why was I mislead?

Not only did they lose my business, but they have made sure that I will not go there in the foreseeable future. And my word-of-mouth will not be positive.

Sun Devil Auto, by standing for everything automotive, stands for nothing automotive. They are a brand built by old school standards and I would not find it unbelievable if they were toppled by narrowly focused companies. The problem, of course, is that most automotive repair shops stand for anything and everything. In the battle of weak brands, a weak brand will win. (Ref: Diet Coke.)

But then, as I left Sun Devil Auto, I decided to go to Jiffy Lube. Jiffy Lube was in the same parking lot (how convenient), so I figured "why not?" I was greeted by someone immediately. My vehicle was pulled in the garage, the front seats were vacuumed, windows cleaned, and the air filter and tires were checked. This was all "just part of their service." I was not charged for these little extras, and it was these little extras that made the entire experience worthwhile.

In less than five minutes, I was called outside and my options were explained to me. The customer service rep also let me know what they had found while giving my vehicle a basic once-over (good air pressure, good air filter–thanks, guys). I selected my oil, and my vehicle was done in less than ten minutes.

In, out, done.

Jiffy Lube does one thing, and they do it well. Darn well. Sun Devil Auto does everything, and they may do it well, but I'll never know.

Stand for something and succeed, stand for everything and you will inevitably stand for nothing, opening yourself up to attacks from narrowly focused competitors who will eat your lunch (and perhaps your dinner, as well).

Buzzwords + Nicknames

The more a brand means to a someone, the more likely they are to create pseudo-names for it. It's the same reason why we give our friends nicknames. I call my brother "Bruf," my friend Daryl is "Dak," and my friend Victor is "Pangit." And my Apple MacBook Pro is a mactop. I am one of the originators of the word. It has also been noted on Urban Dictionary.

Buzzwords from a branding firm? Yep.

I did find a little gem whilst I was poking around Urban Dictionary:

iPerbole
i•per•bo•le
noun
The hype surrounding any product Apple unveils.

"Claims that the iPhone will change the world are all part of the iPerbole surrounding the cultish company."

To paraphrase LCD Soundsystem: Apple, I love you, but you're bringing me down.

Google vs. Yahoo

Susan L. Decker became president of Yahoo! in early May. Her target: Google. Can Yahoo! out-Google Google? No. Yahoo! lost their focus years ago, and Google was all too happy to snatch it up.

According to a July 1, 2007 article titled "Can She Turn Yahoo Into, Well, Google," in the New York Times:

By many measures, Yahoo remains one of the most successful companies on the Internet. It attracts nearly 500 million visitors around the world every month to its Web sites, where it offers a plethora of content and services, from news, sports, financial information and entertainment to e-mail, photo-sharing and online communities. And it is one of the largest sellers of Internet advertising, which it places both on its Web portal and on other high-traffic online destinations like eBay, Comcast.com and hundreds of newspaper Web sites. Last year, it earned $751 million in profits, on sales of $6.4 billion.

Yet over the last 18 months, Yahoo has suffered its biggest slump since the collapse of the dot-com bubble. The company has been eclipsed by the phenomenal rise of Google, which handily beat Yahoo in the most lucrative business on the Internet: search and search advertising. As a result, Google now makes far more money in one quarter than Yahoo does in a year, and Google’s market value of $162.8 billion is more than four times that of Yahoo, which stands at $36.5 billion. As Yahoo races to close that gap, its bread-and-butter business — the sale of banners and other graphical ads — is showing signs of weakness amid growing competition from MySpace, Facebook and countless other sites.

Analysts, meanwhile, say that Yahoo, a company with 12,000 employees, has grown bureaucratic and slow, causing it to miss out on some of the hottest Internet trends, like social networking. They say it has also missed out on some of the smartest potential acquisitions, including YouTube, which was bought by Google, and Facebook, which Yahoo once considered buying. Now Facebook says it is not for sale, and even if it were, the price would likely be far higher than the $900 million or so that Yahoo offered last summer.

When a company loses their focus, they open themselves up to be attacked from all angles. It is better to be strong in one area than weak across many.

Al Ries said, "Successful generals study the battleground and look for that one bold stroke that is least expected by the enemy. Finding one is difficult. Finding more than one is usually impossible."

As long as Google does not lose their focus, they will remain on top. And poor Mrs. Decker may be given a hardy heave-ho by investors and the board, both of whom have unrealistic expectations.

The lesson is clear, here: find one thing and focus all of your efforts on it. Be a specialist. Be narrow. Turn away customers and clients who don't fit your bill. In the short term, you may lose a few battles. In the long run, you are setting yourself up to win the war.

Read the article here.