Profitable growth is key to success in the current business marketplace. So, what’s the secret to profitable growth?
- Stop price/promo discounting and run value-added promotions that engage your market.
- Authentically promote your brand by telling stories using content, videos, and infographics.
- Find ways to serve your target market BEFORE they buy.
Today’s customers don’t want the hard sell. They want information and solutions that speak to them and an experience that feels real. Successful brand positioning creates that experience and solidifies the brand as a solution the customer will return to again and again.
However, a vast majority of companies struggle with making those connections because they are trying to advertise their way to growth. When brand positioning is driven by advertising, the overall brand position gets lost. The conversation between the company and potential customers changes from solving the customer’s problem to selling the company’s product or service. Customers feel unappreciated, undervalued and underserved, and market share declines.
Effective brand positioning translates into higher profits
Companies that know how to effectively position their brands are able to grow more profitably. These brands have a deeper understanding of their customers’ needs and what their customers value, which means they don’t have to run promotional discounts, while still capturing more of the overall market.
Increased pricing and decreased reliance on discounts = profitable growth.
A good product or service that is well positioned will sell itself organically. Most importantly, satisfied customers usually become the organization’s most effective sales force. When a majority of new business growth comes from referrals, rather than advertising, the company quickly becomes an industry leader.
Reclaiming value as a market position
Effective brand positioning is about answering two questions clearly: How do you differentiate your brand in a way that matters to your target audience, and how do you highlight what’s great about your brand authentically rather than promotionally?
There are 5 steps to reposition a brand for growth:
- Figure out the problem your product or service was created to solve.
- Identify the customer best served by that solution.
- Understand how your target market thinks about that problem and prefers to solve it.
- Be clear about how your product or service solves your target market’s problem.
- Find authentic ways to tell stories about solving that problem in language your customer understands.
Step five should take up the least amount of time. Talking about the company’s solution is only 10 percent of brand positioning. The other 90 percent is about understanding the target audience and making adjustments to ensure the company is continuing to serve that market. When advertisers control the message, selling the product, rather than serving the target market, becomes the main focus.
Leaders who reclaim value positioning have the opportunity to significantly improve this and grow their brand more profitably. Here are a few powerful examples:
For business-to-business brands, look no further than cloud-based or SaaS tools. The majority of brands now offer 2-week trials of their software rather than promotions. Furthermore, rather than discounts, they immediately connect you with support and training resources DURING the trial. As a result, sales conversions double and profit triples.
For consumer brands, one of the best examples is Domino’s Pizza, who is committed to making it easier and easier to order pizza, which fits perfectly with the low-hassle, American lifestyle. It’s tough to top Domino’s when it comes to connecting with people where they live, work and play. They understand their customer well and are constantly creating innovative tools and apps that allow customers to order and get pizza fast.
The pizza giant revolutionized pizza ordering when it launched its pizza emoji Tweet to get pizza campaign in 2015. Recently, the brand’s Ferris Bueller-inspired commercials feature a millennial ordering pizza through Amazon’s Alexa personal assistant device and using Domino’s Pizza Tracker to monitor the pizza delivery on his tablet and smartphone.
To learn how our team ensures your marketing efforts are aligned with your authentic brand positioning, visit the Promote on Purpose contact page and request information on how to grow profit and demand authentically.