On Branding: Is Branding Useless for Service Providers?
Written By:
Carol Roth | 20 Comments
This blog features Carol Roth's tough love on business and entrepreneurship, as well as insights from Carol's community of contributors.
Logos, color schemes, web layouts. As small businesses, we spend a lot of money on efforts to create the ultimate brand- a brand that defines the business, conveys credibility and sets us apart from competitors. However, if you are a service provider—particularly in certain industries—I am going to say something that is going to make the eyes of every branding guru on the entire Internet collectively roll back in their respective heads. You may be wasting your money.
See, for many service providers, the “branding” that matters is in the “R’s”: results, reputation and referrals. With my merchant banking firm primarily focused on investment banking services, you know what got us business? It wasn’t our name, our logo, our business cards, our “colors” or even our website. In fact, I changed the businesses’ name, logo and website several times. In reality, those items were just collateral. But what got us business was results, like selling scale manufacturer Pelstar to Newell Rubbermaid for a very attractive multiple or selling the Jerdon division of Applica for them when they had previously unsuccessfully attempted a process themselves. We also generated significant referrals from previous clients, private equity firms, lawyers and other service providers that we had worked with.
Frankly, the firm could have had any name, tag line or colors. Our website only mattered as much as enforcing that we were credible. However, in our industry, as in many others service industries, almost no business comes in over the transom. If you are going to be spending multiple six-figures for someone to sell your business, you aren’t doing an Internet search or judging a business card, unless perhaps that business card was printed on a piece of toilet paper. What you are doing is getting a referral from a trusted decision maker- almost without exception.
I know this to be the same and true for others. There are lawyers who I refer business to because of the great work I have witnessed them do for me and for others, whose firms’ names I can barely remember. I couldn’t tell you what my accountant’s tag line is and I don’t really care. Even household service providers that I use are only allowed into my home because someone else that I have confidence in has vouched for them.
Yes, it may be cliché, but particularly in the services realm, people are doing business with providers that they know, like and trust. Sure, looking totally unprofessional can hurt your credibility, so you have to spend some money to have a brand that is in the realm of credibility. That being said, spending too much on your branding can be a giant waste of time and money. You will generate a higher return if you invest in developing your relationships and nurturing your current and past clients instead. Even putting time and resources into raising your profile as an expert will have more of an impact than deciding if you like burgundy or navy.
Now obviously, if your service is branding, you don’t want to be the shoemaker whose children have no shoes. If that is your business, you need to walk the talk. But for many industry segments, “traditional” branding is one of the last places you should be focused. Spend time thinking through how new clients are typically garnered in your industry. If you are not likely to generate a client through an Internet search or advertisement, but do so through a connection, take a guess as to where you should be spending your time.
Author: Carol Roth Carol Roth is a business strategist, deal maker and author of the New York Times bestselling book, The Entrepreneur Equation. She has helped her clients, ranging from solopreneurs to multinational corporations, raise more than $1 billion in capital, complete hundreds of millions of dollars in M&A transactions, secure high-profile licensing and partnership deals, create brand loyalty programs and more.
Carol is a frequent radio, television and print media contributor on the topics of business and entrepreneurship, having appeared on Fox News, MSNBC, Fox Business, WGN TV Chicago and more. Additionally, Carol’s Unsolicited Business Advice blog at CarolRoth.com was recently named as one of the Top 10 small business blogs online.
Twitter: @CarolJSRoth
caroljsroth
Amanda Bucklow Hi Amanda- I will check out the book. That sounds very interesting. And certainly for some companies it is critical. But for small service providers, I don't think it would make much difference.
JohnRichardBell
Branding isn't just names, logos and slogans. The heart of branding is reputation. You landed your accountant because of his reputation. Your reputation for results got you merchant banking business. Carol Roth is the brand. Change your name, don't tell anyone and see what happens. PS: Your heading hooked me. Well done.
caroljsroth
JohnRichardBell Thanks. And yes, I agree, a brand is more, but the concept of "branding" that many firms sell forget the other parts.
And I did change my name (when I got married 12.5 years ago). It was a minor blip, but overcome-able (if that is even a word)
wsucougs1
caroljsrothJohnRichardBell If a firm is selling a concept of branding as its your " logo. colors and slogan " you have the wrong " branding " firm anyway.
ffuquapurvis
Wll said Carol. It's all about balancing your business. Spending your time, money, and energy on things that add value. Branding has value, but only to a point. It's criticality will vary based on a number of factors. As with anything in our business you can go overboard. One thing that a "branding exercise" can help you do is think about what you stand for and what your business really means. One of the things that took the longest for me to refine and finalize was the list of Guiding Principles on my web-site. Not because it wasn't important, but becasue it was so very important to the foundation of how I operate.
caroljsroth
ffuquapurvis Well said, Faith. Thanks for the add.
Liz Radzick
Hi Louisa,
Loving our exchange here :-)
To quote Carol:
"Sure, looking totally unprofessional can hurt your credibility, so you have to spend some money to have a brand that is in the realm of credibility. That being said, spending too much on your branding can be a giant waste of time and money. You will generate a higher return if you invest in developing your relationships and nurturing your current and past clients instead."
This really resonates with me.
You and I agree on the importance of brand: wishy-washy is not the goal (in brands, Cali dudes, or hot sauce). What *I* want to know is as a service-provider is how much of my time/energy/money should I be pouring into creating this corporate entity persona vs maybe just hanging out my shingle with my name on it like marieforleo (who has done a kick-ass makeover on her webpage just this week by the way) or sallyhogshead and stop pouring time/energy/money into my made-up corporate identity such as "Sparkly Words Copywriting" (another attempt at a lame brand example, not as sexy as Cali Dude admittedly).
In 17 years of doing my thing (she said adjusting the straps on her ego ;-) I have seen Carol's position validated many times, simply because the firm I worked at for many years had CRAPPY brand identity which should have been a log-jam on the business but patently WASN'T to the tune of nearly $1M which for a company of 2 is not bad coin in my books.
It wasn't because we didn't care, it's because there wasn't enough $ to sink into such an endeavour (yes, I'm a Canuck).
Love to hear your thoughts on this.
Louisa Leontiades
Liz Radzickmarieforleosallyhogshead
Hi again,
I feel that you mistake brand for brand logo, tagline and colors. Your brand is not your 'branding'! These are important and sure, spending money on them may be necessary in the final analysis. But doing a logo is supposed to represent what you already know, not define it for you. That's why the company you mention wasted so much money, because they had no idea of their brand so they spent a lot of money on trying to find themselves with a branding exercise.
So basically I would advise not spending ANY money until you know in your gut how you want to be perceived by your clients. It's the amount of thought that is important not the amount of money you put in.Once you know your what your brand represents, it is soooo very easy to pick out images from corbis/istock or get a designer to a logo it for 1000 dollars or less (I know some who work online) - because you have a very good idea of what you want but lack the graphic skills to draw/design it.
Carol has a very strong brand personality (in effect she is her brand) without the need even for a logo. She sits in the Explorer/Ruler archetype categories I think - characteristics - innovative, edgy, enterprising, powerful, although I haven't done an analysis on her. Of course I don't know the woman behind the brand. And she may not be the same - but I feel not! You can be a strong brand also without a logo, but I think branding is useful to reinforce the brand (although in the case you mention it appeared to undermine it!).
Although I am loathe to hijack blog comments to tout business (it feels quite cheap - especially on Carol's excellent site - and for an opinion which seems to contradicts her own), we do actually have a free download on this very subject (it's called Creating Brand Love). You can contact me privately as I think we've said enough in the comment section!
Good luck figuring out who you want to be!
Louisa Leontiades
Interesting point of view based on the premise that brand refers to logo, tag line and color. But these are simply the outward signals of an internal company personality, an archetype which resonates with the customer instilling a sense of familiarity to mirror facets of their own personality or aspirations.
No one loves Apple because they're called Apple or their logo is white, or even that their tagline is 'Think Different'. However the Apple is a basic symbol of creativity (think womb), a representation of knowledge (garden of Eden) and Apple is emblematic of the powerful magic of predicting the future. A truly powerful Sage brand if ever there was one, 'Gandalf' at his finest. And branding in this sense will help you stick out from the crowd. If you want a guest blog on this topic, we'd be happy to oblige.
knowlersmoneydecisions
Liz Radzick
Louisa Leontiadesknowlersmoneydecisions Hi Louisa,
I agree with what you have said...and Apple is about products not services (yet). If Steve Jobs had been a service provider i.e. "Technical Advice Wizard For Hire" would he have done just as well as "Happy Cali Dude Enterprises?" (this is my attempt at a lame-ish brand for a service provider) versus some well-crafted brand moniker plus logo?
Louisa Leontiades
Liz Radzickknowlersmoneydecisions
Hi Liz,
I truly believe that all companies will have a personality, because they all have certain ways of working and are made up of people! And I believe that this is applicable whether they are product or service providers.
The worst case is that their personality is bland - forgettable - or even has the negative traits we never like to see mirrored. What we buy - both products and services is an extension of ourselves and how we identify with the world. And it's becoming more important as online/offline noise clamors for our attention. The facelessness of the internet makes it very important for companies to demonstrate the personality behind the service.
I like the sound of a Cali Dude ;-)
caroljsroth
Liz RadzickLouisa Leontiadesknowlersmoneydecisions I think Steve Jobs would have done just as well either way as a service provider because he would have made it what it is. Now, certainly some names are better than others. That being said, if he was Steve Jobs Inc, HCDE or Technical Advice Wizard for Hire probably wouldn't have made any difference. If he was Kreative Dude, that may have had an impact (or not), but no need to spend a lot of time and money on it. Not to say there shouldn't be thought given, but the amount of time and effort could be cut significantly.
Louisa Leontiades
caroljsrothLiz Radzickknowlersmoneydecisions I think time and money are two different things. Time input is exceedingly valuable to clarify your thoughts and gut feel around your brand personality (no one is saying that you have to stop all other activity); whereas money paid to someone else to define your brand is a waste.
caroljsroth
Louisa Leontiades Very true to a point, but time IS money. So yes, you need to do enough work, but endlessly debating over logos, taglines, etc. can also be a huge opportunity cost. Everything in moderation.
Louisa Leontiades
caroljsroth Yes and No. On the whole time is money issue: https://www.investment-impact.com/news/day-127-you... (feel free to erase it after).
ALJ79
Carol, I agree with you, but I want to make a few points: A strong brand that communicates and reinforces your brand values creates confidence among those out networking in the marketplace. It also helps open doors in organizations where perhaps your relationships aren't quite as strong. Business developers need a strong brand platform to stand upon when they are building relationships in the marketplace. It's a balance - with limited resources should we, as service businesses invest more in relationship building activities? Yes. Can we totally ignore the firm behind the relationship? No. I encourage my consultants to "sell the firm" when they're out in the marketplace - that means introducing their colleagues to their referral sources, presenting firm case studies, highlighting the collective skills and knowledge that make up our firm - that's branding too - it's not just about colors and logos. Great post - I think maybe as service marketers, we should develop our own definition of "branding" that more accurately reflects the activities we pursue to strengthen and elevate our brands?
caroljsroth
ALJ79 Mostly agreed (if they have colleagues- many service providers are one-man bands).
And yes, all of the other things help make up the brand, but it's not what is traditionally sold (or thought of) as branding. Perhaps the moniker will continue to evolve (or we can make up a new one). Thanks for your adds.
Liz Radzick
Excellent post! I am debating about whether to just use my personal name for my service or stick with the moniker I've had for years. I know that people call and hire "me" not "the company" but as a service provider that might want to add to staff, does it still make sense to be "Me Inc" when I'm trying to handle more volume with "mini-Me's"?
caroljsroth
Liz Radzick Go with a company name- it will give you the flexibility to expand in the future and eventually you won't want it to all be dependent upon you, even though you will be the secret sauce early on.
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A great article and a very valuable reminder about what really matters.
There is a point at which the aesthetics do correspond with what you offer and they communicate a lot of information without words. We are very visual creatures and recognising 'symbols' is one of the earliest skills we developed as humans. There is a great piece on this in subject (symbolic reasoning) in Brain Rules by John Medina. I highly recommend the book.
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