We human beings are hard wired to be social, to belong to a group that reflects in one way or another, the view we have of ourselves.
We belong to a family group, for better or worse, then many ‘satellite’ groups of varying importance to us.
A brand is the flag of a group to which we may belong, aspire to join, have no interest in at all, or indeed, may hold in contempt.
Buying a product with a brand is a signal that we are a part of that group. If it is a brand of yoghurt, it is probably a pretty loose group, the alternatives are almost as good, price and availability on shelf play a significant role in the choice. By contrast, buying an expensive branded handbag, a tailored and branded suit, or an expensive car means a whole lot more. We are saying overtly to others, we are a part of that group, holding the perceived values of the group as being personally important.
For those marketing a brand, the challenge is to find those who may be interested, and then to remove all the friction that may stop them becoming a part of the brand group, assuming they meet the ‘brand qualification’ standards. For example, unless you have a lot of money, you will not be admitted to the Louis Vuitton handbag owners group, or the Rolls Royce owners club.
There are some tried and true ways of engaging ‘brand members’.
For example, describe the members using a noun, rather than a verb. Describing a ‘brand member’ as a ‘user’ is more effective than saying they use the brand. Simple, more personal, and it makes the invitation more compelling.
Encouraging someone to take an action they may not have otherwise taken is also simple. Suggesting that ‘75% of people like you do this,’ dramatically increases the chances that your target will also do the action you require. Being told that number by someone they know, and trust is a powerful catalyst, even when they know that person is just a paid celebrity of some sort.
For the owner of the brand, it enables more specific communication that is likely to resonate with current and potential owners, attracting those who are not currently ‘users’ and cementing the value of being a user to those already in the club. This enables more productive use of marketing funds, and greater margins.
Usually there is a trade-off between volume and margin, very few brands can pull off the double of high volume and high margins. The only one I can think of is Apple with their iPhone, that still has 85% of the profitability of the mobile phone market on the back of their astonishing ability to get people to pay a significant premium for the device.
Building a brand is a tough, long term task, at which few succeed.
