How To Survive in This Economy

I was reading one of my weekly newsletters and came across this article that I thought relevant enough to share with everyone. While it has a sales orientation, the message is quite poignant. It reinforces all that I have been hammering you on about brand identity (they say the true test of a man's intellect is how much he agrees with you - this guy is BRILLIANT!). He uses a restaurant for his example which only serves to reinforce the value of understanding your brand and insuring that all that you do works to augment who and what you are. I hope you enjoy it as much as I did.


HIGHER GROUNDS
A Simple Recipe: Crafting Your Brand's Reputation
by: Brian Parsley

Do certain childhood memories evoke a cozy feeling within you? It's actually branding in disguise.

Some of my favorite memories were the visits to a down-home restaurant called The Farm Table in West Virginia. It was Southern food done right in nothing more than a small family-owned space. The home-cooked meals and "everyone is family" aura had people lined up out the door seven days a week. I've never forgotten their amazing food, made with love, that was often delivered with a hug. At The Farm Table, there was always a smile and acknowledgement that made you feel like you just got home.

Now, as a business professional, I reflect on how they built their brand and reputation. From what I can remember, they didn't advertise. There were no coupons or weekly specials. The decor and architecture was "hole-in-the wall" meets "backwoods." And the restaurant's location was not prime. It got me thinking that maybe a business doesn't need fancy campaigns to build a solid brand. Simplicity, quality, and a genuine interest in customers are the foundation of a company's reputation. It builds their brand.

The Farm Table didn't have to advertise to get new customers; their consistent delicious food, fair prices, and excellent service did it for them. These are the ingredients that created their recipe for brand success. It boils down to the daily interactions you have with customers -- those interactions will determine whether your reputation will be positive or negative.

Let me give you a perfect example of how service levels can create or destroy the brand cornerstone of a company's reputation. A few months ago, I had my oil changed and the technician advised me that I had a nail in my tire. He offered to fix it for free. After he finished, the manager approached me and said, "Sir, I just want you to know that we will NOT guarantee that your tire won't leak. He should have never helped you with that." That single interaction of just a few seconds put that brand's positive reputation in the dumps for me.

Your reputation yields your business outcome. Your revenues, number of customers, and bottom-line profitability are the result of how well you have been able to build a reputation around what customers value the most. Your sales are a direct result of your ability to generate repeat business and attract new fans. Yes, advertising does create awareness for your business, but it is not the whole strategy. Taken alone, advertising can often cost more than it's worth, especially if you give bad service when someone responds to your ad.

While some companies may be using the economy slowdown as an excuse for negative impact on their business, the truth is that people are still building, buying, and eating out. If business is
down, start asking your customers about how they define your reputation. With that information, you can create a recipe for a reputation that delivers quality and builds brand equity.

Let's go back to the manager at the oil change business. Maybe he should have asked me what I loved about my experience rather than tell me his employee did wrong by serving me. He could have discovered that the technician's extra effort would have made the difference between my returning or not.

Your brand and your reputation are dependent upon your level of sincerity, your willingness to serve your customer, and doing it from the heart. My father told me The Farm Table is still in business and going strong after 25 years. No web page, no voicemail, and no fancy gimmicks. Their brand and positive reputation developed over a period of time based on friendly service and the best home cooking. When you put effort into your reputation, you build a brand that will sustain your business through any economy.

Here are some great ways to build a positive reputation:

* Never answer the phone or greet a customer with "Can I help you?" Just say, "Good Morning" or "Welcome." People will tell you what they need.

* Offer to fix something that's NOT included because you care.

* Send your customers handwritten thank you notes.

* Build your business on quality, not lowest pricing.

* Thank your customers for coming to you when it's obvious they have several
other choices. Customers will remember your efforts, and that goes a long way to building a reputation that creates substantial brand equity.

* Get more involved with your local community so your name and your brand become known.

* Honor your word. If you commit to something, do it! Even if you lose money, time, or energy. Your reputation is built upon your actions.

And if you ever happen to be at The Farm Table, please make sure you order chicken and dumplings in my honor.