Friday, October 16, 2015

8 New Rules For Growing An Enduring Startup Brand

Howard-Schultz-StarbucksEvery new business dreams of becoming the premier brand in their space, like Starbucks is to coffee, and Apple is to consumer electronics, but they have no idea how difficult that is to achieve. In fact, only 100 of the 10,000 multimillion-dollar consumer companies around the world can claim to be an “apostle brand” – one that inspires enduring trust, loyalty, and endorsement.

One of the reasons it’s so tough is that the rules are constantly changing on what it takes to win over customers, as customer attitudes and cultures change, and competitors continually strive to “raise the bar” on product and support. I found some eye-opening elements and insights in a new book, “Rocket: Eight Lessons to Secure Infinite Growth,” by The Boston Consulting Group.

They outline the new rules for existing brands, but I believe that every entrepreneur who doesn’t yet have a brand yet should study these carefully, as paraphrased for startups below. It’s a lot harder to recover from brand missteps made early, than it is to get is right the first time, so build your brand strategy accordingly:

  1. Don’t ask your customers what they want next. The challenge of every startup is finding that balance between solving a real problem today, and giving customers the courage to make a leap forward. Existing customers can’t envision a new concept, or new behaviors. You have to excite their imagination, then show them the new world.

  2. Turn your biggest fans into apostle customers. Your first satisfied customers define your voice in the marketplace. They see your strengths, weaknesses, and opportunities. If you listen to them and respond, they will become your best apostles, delivering on average eight times their own value in new customers. That’s a winning growth trajectory.

  3. Always welcome a customer’s scorn as a gift. Even in a new startup organization, it’s easy to become convinced that a percentage of unhappy customers is normal. Instead of scorn and dismissal, a comprehensive and deliberate response is the key to brand growth and vitality. Without the feedback, no change in the demand space will be noted.

  4. People still judge a book by its cover. Consumers shop with their eyes, just like they eat with their eyes. Target all the senses all the time. Shame on you if you offer any product or service that is dull or unattractive. Steve Jobs was a master at this. Visual appearance and core values matter. Make your team as well as your customers proud.

  5. Transform your employees into passionate disciples. A highly motivated front line engages customers and tells your story with passion. They are your greatest resource for generating new apostles and a cultural advantage. The result is higher repeat purchases and sales without promotion. Loyalty in the ranks creates loyalty in the customer.

  6. Ramp up your virtual and real relationships. The digital age is making virtual relationships with customers indistinguishable from real relationships. It’s a lot easier and faster to grow virtual relationships, and they are both real for online purchases. Your startup needs to use blogs and social media to establish interactive relationships early.

  7. Take giant leaps rather than timid steps. It’s hard to really change the world with incremental advances and consolidation. Be clear and vibrant in your claims and in your deeds, or you will never get noticed in the flood of messages we have to deal with every day. Startups have the advantage in starting with a dream and no feet stuck in the past.

  8. Don’t ever assume that your brand is stable. All relationships are in a constant state of flux, so don’t assume your customer relationships will remain stable. At any moment, your brand will be lifted high or knocked down low by cultural changes or external events. It’s up to you to track the data, recognize a change early, and intervene proactively.

The overall goal of these eight new rules is to help your startup forge the tightest possible emotional connection with the most customers in the shortest amount of time. These apostle customers lead to more love, loyalty, advocacy, and the exponential growth of an enduring brand. It’s the only way to make your startup the next Starbucks.

Marty Zwilling



1 comment:

  1. No: 8 represents the reality of it. To have a stable successful business is to be innovative and change to demands, you also need to go that little extra to keep customers loyal as there is so much competition.