Dannon Oikos’s nostalgic Superbowl spot was a great advertisement for both the French multinational and its new yogurt product.
But will knowing Oikos is a Dannon product make consumers want to purchase it? Or will they turn instead to nutritional count, pro-biotic content, or price to make their decision? How strong is this brand?
How strong, these days, is any brand?
What I need right now is some good advice
Well, it depends. An excellent piece in the New Yorker this week explores “the end of brand loyalty” and whether this spells the decline of an age in which brands were useful shorthands for purchasing everything from baked beans to luxury sedans. In an era in which the customer review is king, all companies must compete product by product, it says, even established giants. The field is open for upstarts and smaller rivals who can win over a market on the strength of a single, well-reviewed product.
It’s easier than ever for young companies to establish a foothold with a signature product: think Crocs, which have expanded from those foam clogs to flip flops and winter gear, creating a whole new hideous/comfortable footwear market. What propelled Crocs to fame was the strength of customer testimonials saying that it really was worth the price and the look to get that level of comfort.
The same trends that allowed Crocs to happen also signal the decline of major brands. When we have so much information at the click of a button, the promise of a consistent level of quality – which is really all a brand is – becomes less important than the fact – actual product reviews. Why trust a company to make things you know you’ll love when you can trust other users to tell you their opinions instead? It’s true: the level of trust in a product’s brand as a shorthand for making a good purchasing decision is at its nadir.
However, the decline of product brands has led to the rise in service brands, particularly those giving advice. Booking a holiday? The competition for who gives the best advice on hotels, restaurants and attractions seems to have been decisively won by TripAdvisor. Purchasing a book? Bypass the publishing house and read the reviews on Amazon, and then let the site recommend a choice for you. Looking for a good movie? Hardly anybody makes decisions about movies based on the studios that produce them, but Netflix can tell you what to watch based on what you’ve seen before.
These are all Internet-based examples, because the advice industry has moved online for the most part, but brick-and-mortar service brands have also maintained their strength amid the fall of brand loyalty for products. Banks are an example of organizations that are judged based on the selection of products they have curated for their customers, but more importantly how they advise their clients, particularly in the higher end, higher-margin businesses of wealth management and institutional and corporate banking. Consulting firms continue to prosper through economic slowdowns because they can advise on both growing revenue (in good economic climates) and streamlining expenses (in bad). And it all began with things like Consumer Reports, J.D. Power, and other ranking agencies who built their reputations upon being the ones who choose the products that matter, and whose advice you can trust.
The service brand becomes personal
Those who host the platforms that enable others to recommend products – the information aggregators and analysts – are poised to be the big winners of the near economic future. And this extends to individuals as well, which explains the push in the last ten years to develop “personal brands.” I’ve written before about how this makes many feel a bit icky, and yet if we think of skills as “products,” and analytical ability as “service,” it makes sense to have a personal brand that emphasizes how you think and relate to others as opposed to what you know. (This is why most personal brands focus on a combination of attitude and experience, e.g. Oprah’s signature empathy which resulted from her life experiences.)
Skills can be learned and degrees earned by many individuals, just like many companies can manufacture clothing. They are interchangeable. But proof of being able to think well, in the form of awards, complementary experiences, and attitudes, expressed through a self-aware brand, is unique.
This is likely why LinkedIn has moved to a model that goes beyond listing skills and abilities to providing references (“recommendations” and “endorsements”) to indicate past performance, and “followers” to show how popular one’s ideas are. These serve the exact same function as the ranking and number of reviews a destination has on TripAdvisor.
No doubt this has contributed to the large number of individuals wanting to strike out on their own. At a recent networking meeting I attended, 100% of attendees were looking to become independent personal nutritionists, career or life coaches, or consultants. They weren’t wanting to sell things, they wanted to sell themselves and their advice.
A strong brand – a personal one – is essential for this kind of career change, and part of creating a strong brand is ensuring consistency. Working for an organization whose values don’t align with yours – even if you are doing the same thing you’d want to do independently – is a brand mis-match.
All of this highlights another key similarity to traditional product brands: service brands, once established, have a grip on market share. Most companies would prefer to have an accountant at an established firm do their taxes over a sole proprietor. TripAdvisor has few competitors in the travel advice industry, which is why travel agencies are faring so poorly. The barriers to entry are high and name recognition and brand still counts for a lot.
My advice to newcomers: time to call up Uncle Jesse to make an ad for you and get some brand recognition.