Are your profits on the wane? It may be time to take this three-point broker brand audit.
A well-known brand is not synonymous with a strong brand, says Dan Ratner, MD of Uberbrand. And for brokerage owners who are seeing their profits wane, testing the strength of their brand is not the worst place to start.
“Whether you have been around 50 days or 50 years, you must constantly look out for the danger signs that your brand, and subsequently your business, is under pressure,” says Ratner. “By monitoring your brand risk you can address the issues and potentially save your business.”
Ratner gives three signs which indicate your image may be in trouble:
1. Increased competition in the market
Being unique and different is a key strength for brands. An increase in the number of direct competitors indicates your brand is becoming more mainstream. If your profit is not increasing in line with the growth in of the market as a whole, you may be under threat.
For example, a few years ago the mobile phone industry was a very different market, with a few key players and a limited audience. Then mobile phones became mainstream.
Apple has thrived in the market by always being innovative and offering something unique. This built brand equity which feeds back into the brand’s strength. If the market grows significantly but your market share doesn’t, think about adapting your brand to stay fresh and innovative.
2. Your space in the market isn’t clearly defined
Just as important as the number of competitors is where those competitors sit in the minds of your customers. Think about your competitors and plot your market out by product range, price and availability.
If your brand is in the same space as several competitors, you could be in trouble. When you are competing for share of mind and wallet with very similar products or services it can be difficult to come out on top.
If you need to reinvent yourself, look for the spaces in the market. These are your opportunity areas with less competition. Plan how you will move from your crowded space to an emptier one.
Red Balloon recreated gifting. It changed the perception of gifting from being about physical products to being about experience. This created an entirely new category, which many others have since emulated.
3. Low customer understanding
Is it easy for your customers to understand your product or service? Perceived simplicity is a vital part of a consumer’s decision-making process.
As customers are presented with more choice, they often go with what they can easily understand or already know. A brand cannot be successful if its potential customers don’t understand its offering.
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