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5 Big Myths About Building Product Branding

16 May

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What you don’t know could be hurting yours

Brand is a fun topic and lots of people have opinions about it. Unfortunately, there’s a lot of bad information out there and that makes it more complicated than it should be, not to mention the fact that many people throw the term “brand” around without really understanding it. So here’s a short list of five simple myths about brand that every building products marketer should know:

#1 – Brand is a name or logo

Well, kinda. Those are certainly things a brand is associated with, basically the trigger for a brand, what identifies one brand from another. But to understand brand, we need to go deeper. My favorite explanation of brand comes from Marty Neumeier, who suggests brand is “a person’s gut feeling about a product, service or organization.” And that’s an important distinction to make, especially when we consider Myth #2…

#2 – You own a brand

Nope…and that is completely counter-intuitive. You see, you might own a name or logo, plus a tagline, website content, etc., but those “gut feelings” people have are uniquely theirs. You can’t own that, and yet that is the essence of a brand. So what you CAN own is the elements that impact the experience people have with your product or service—and you should, because it’s exactly what everyone else is using to develop their perception of your brand. From obvious things like quality and innovation to subtler items like website design and on-hold wait times, the elements that impact your brand are all around you.

#3 – Branding is putting our name or logo on things

It’s certainly a part of it, but only a small one. Want to know the biggest, baddest, most impactful way to build a successful brand? Here it is, free of charge: Make the experience match the expectation. There it is, the Golden Ticket to developing your very own Google or Apple (or Therma Tru or Masonite, for that matter). Of course, knowing it and doing it are completely different challenges. But the fact is Apple is known for innovation, Google is associated with results, and Amazon is trusted, not by accident, but because way more often than not, those brands have delighted people by delivering beyond expectation. That’s a positive experience consistently delivered, which builds trust, which builds brand.

#4 – Branding is the same as marketing

They are certainly related, but definitely not the same. Think of it this way: marketing is about delivering the message to your audience; branding is about delivering TO the message FOR your audience. In fact, an effective way to think about branding is “experience control”—all the work, effort, and strategy to ensure that what people experience is on target. That can be everything from how CSRs answer the phone to the quality of paper used in sales collateral. Consider that no matter how slick and new an airliner may be, the company logo sparkling on the bulkhead, that isn’t the airline’s brand; the surly flight attendant who snaps at you and screws up your drink order, for you, THAT is the brand. Ultimately, everything in the brand experience needs to deliver to a single message to build trust and preference.

#5 – There’s no such thing as bad press

This lazy approach to branding has seen some impressive names disappear over the years, even more so with the emergence of social media and the easy sharing of experiences. Today, unrestricted by any professional oversight, every blogger, every Yelp star, every Google “+1” is all potentially a part of what people think (and feel!) about your brand. And the worst thing to do when something negative is shared is to do nothing at all, hoping the problem will go away. It won’t. So it’s important to keep the experiences and the conversations focused on the positive.

So what does this mean for you and your brand? Well, awareness is the first (and biggest) step. Always consider your brand from the audience perspective; not by what you’re doing, but by what they are experiencing. Knowing and understanding that perspective is critical to building a brand experience that can meet the expectations of those who will build—and talk about—your brand.

Buyer Personas in the Building Products Industry

19 Oct

Buyer personas give your marketing direction and ensure your message is accurate

Whether or not you know it, you’re likely using buyer personas everyday – it’s just a matter of how accurate they are. Buyer personas are representations of customers that are used to better understand why they purchase what they do. As building product marketers, we all say things like “Contractors will like this product because it’s easier/cheaper/faster”, but what is it that really influences them to buy? Establishing the specifics allows you to craft a message that resonates with these buyers and beats out the competition.

So how do you establish an accurate buyer persona?

  • First off, you can just make it up. As building industry marketers it’s important to go deeper than a list of bullet points that describes our key buyers. We need to really spend time with these people and complete an in-depth analysis of their buying trends. According to Adele Revella, the founder and president of the Buyer Persona Institute, the Five Rings of Insight are the “most overlooked and essential aspect, simplifying decisions for persuasive messaging, content, launches, campaigns and sales enablement.”

Here are the “Five Rings of Insight” that will allow you to define your buyer persona:

  1. Determine the Priority Initiatives: Define the three-to-five problems or initiatives where this buyer persona is dedicating time, budget and political capital
  2. List Out Success Factors: Figure out the tangible or intangible rewards that your buyer persona wants to achieve as a result of buying your solution
  3. Recognize Perceived Barriers: List the reasons your buyer persona believes your solution won’t be the best way to achieve the Success Factors
  4. Chart Out the Buying Process: Include the resources and steps that your buyer persona relies upon to assess available options and make a final decision
  5. Figure Out the Decision Criteria: List the aspects of the product, service, solution or company that this buyer persona evaluates during the purchasing process

Accurately defining your Buyer Persona’s takes time, energy and effort, but once established can pay dividends in assuring your messaging is correct and sets you apart from your competitors.

We’ve used buyer personas for years. We actually have cardboard cut-outs of our “guys” – dealers, contractors, big box sales reps, deck builders, etc. When we have a meeting these guys often join us as a reminder of who we’re talking to. If they’re not in the room with you – it’s time you invite them!

For more information about buyer personas and the Buyer Persona Institute, click here.

As the Tech Revolution Continues in the Building Products Industry, Don’t Forget…

26 Apr

Linked from freedesktopwallpaper.org

Every day, we’re all inundated with stories about this device or this website being another “revolution” in our everyday lives, and while most of that is hyperbole, we’ve truly seen some revolutions in the past 20 (and even last 10) years in technology. You might be reading this on an iPad at home, or on your Android device at the airport. Or maybe you went “old school” and you’re reading on a desktop computer! Marketers like us tend to be on the forefront of technology and can sometimes forget that the people we’re selling to don’t fit that same model.

ProSales magazine, one of two main trade publications for the LBM dealer audience, conducted research titled “Building Material Dealer Sources of Information Survey” last fall. The first question in this survey was, “Which of the following types of resources do you use regularly as part of your work-related reading/information-gathering?”

The top response, picked by 82% of respondents, was “Trade magazines specific to building material dealers.” Yes, those magazines we all get at the office, the same ones derided as old/traditional media.

The second response, chosen by 61% of respondents, was “Building product manufacturer sales representatives.” Yes, in 2011, people still count on a one-to-one conversation to get the information they need to run their businesses more effectively.

This survey was conducted by email, so you can likely assume the respondents would tend to be more engaged with technology than the typical building material dealer…so imagine what the numbers would look like if you could survey those typical dealers.

Similarly, we conducted research for a client last fall, also sent by email to building material dealers across the country. We asked what methods they’d prefer to be communicated with by wholesale distributors, and gave them the following options: direct mail, email, fax, text messaging, social media or phone. Respondents ranked those choices, and Email was the clear #1 choice, but do you know what #2 was? Faxing.

We know the building products industry isn’t known for being quick to adapt, but that result still surprised us. Remember, this was an emailed survey, so it’s very likely faxing might be almost as popular a choice among the total dealer audience.

Am I saying abandon your efforts with mobile apps, social media, BIM modeling and other technologies? Absolutely not…but don’t forget that a lot of business still gets done in this industry with the same methods we used before any of us even knew what a “smartphone” was. A lot of “social networking” still occurs the way it has for years – in a lumberyard, face to face.

Signs of Life for Building Products Marketers

19 Apr

We are constantly adapting to the ebbs and flow of the housing and building industry.  DIY customers are reportedly buying more and remodelers are getting their hands dirty again. As a CMO, we need to consider how these changes affect our marketing strategy and spending.

Strong spending on gardening equipment, furniture, and building materials in March could mean homeowners are busily preparing to make their homes more attractive to buyers. Retail and food service sales rose 0.8% from February to a seasonally adjusted $411.07 billion, the Commerce Department reported. But while overall sales were up 6.5% year-over-year, building material and garden equipment jumped over 14%. That bodes well for the housing market, says Susan M. Wachter, professor of real estate and finance at the Wharton School of the University of Pennsylvania on a recent SmartMoney post. “These retail sales are another an indicator of better home sales ahead,” she says.

Lowe’s recently announced a 13% spike in sales to $11.63 billion helped by an unusually mild winter and better cost control, while Home Depot’s fourth-quarter earnings rose 32% to $774 million. Wachter says the double-digit sales increase in Lowe’s other items like kitchen and bathroom cabinets – typically a big consideration for house-hunters — and new flooring further shows that homeowners may be preparing to increase the appeal of their homes.

Others say home improvers may be biding their time. From the same mentioned SmartMoney post mentioned above, “Lawn care and showcasing nice furniture are always an important aspect of trying to sell a home,” says David Abuaf, chief investment officer at Hefty Wealth Partners in Auburn, Ind. “But I think the March retail figures are driven more by maintenance and upkeep rather than a desire to sell immediately.”

But there have been several other encouraging signs that the housing market may be regaining its pep. Existing home sales recorded the strongest February in five years, according to the National Association of Realtors and, according to the most recent Commerce Department figures, the number of new single-unit houses authorized for construction rose nearly 5% in February. “We expect to see gains through the all-important summer months,” he says. And for homeowners, Wachter says, “It’s better to fluff now to attract buyers.”

Our industry is contingent on the economy and the fickle supply and demand of our customers. We have to make sure we are prepared from season to season, and with the increase of sales at two of the largest building product retailers in our country, we can expect demand to rise as well.

Sources:

Curb Appeal Splurging

Mobile Apps versus Mobile Websites—Which is More Worthwhile in the Building Product Market?

5 Apr

Smartphone users want more out of their searches.

In a previous post I mentioned a few statistics of mobile shopping and the relentless reliance on our smartphones and devices.

As smartphone owners, we are increasingly using our devices as retail outlets. From researching products and reviews, to comparing prices, finding retail locations and redeeming coupons, we are constantly deferring to our phones for immediate inquiries.

How many times have your potential customers walked into a building products store and searched for an apron-donned assistant to answer a question about a specific product? I, for one, am guilty of that. Imagine having an app where your customers can simply scan a QR code into their smartphone and instantly appears your webpage with all the information about that particular product, where it comes from and how to order. A perfect opportunity to upsell and cross-sell, and all of sudden your customer is leaving with a cart full instead of a basket full of your products!

Your website provides vital information on products, warranties and special offers. Having that information accessible online and in-hand is crucial to the comparison shopper.

Mobile shopping has reached scale and is only going to grow as smartphone penetration continues to rise. Neilsen’s metering of 5,000 US volunteers participating in Nielsen’s mobile research shows that during the 2011 holiday season, the top retail apps and websites combined—Amazon, Best Buy, eBay, Target and Walmart—reached nearly 60 percent of smartphone owners.

Smartphone owners of both genders prefer mobile websites over mobile apps when it comes to retail, with men slightly more likely to try retailers’ mobile apps than women. Research has shown that consumers who use retailer mobile apps tend to spend more time on them. Home Depot’s mobile website, for example, is efficiently organized to guide the user directly to the specific product they are needing. Target’s mobile site will even tell you the aisle in the store where the product appears! That’s the kind of tool consumers love.

As building product marketers, you (hopefully) already have an information-packed website; do you really need an app to repeat what is already provided on your website? The answer is no. Mobilizing your website to make it easy for consumers to navigate is what you really need to get ahead of the curve.

“Retailers need to think of their business as a multi-channel environment that can potentially include mobile, online and brick and mortar stores,” says John Burbank, President of Strategic Initiatives at Nielsen. “Winning with shoppers requires a consistent experience across channels that reinforces the value you represent as a retail brand, whether it be price, service, selection, style or other key attributes.”

Our industry consists of dealers, retailers, manufacturers and lumberyards; nowhere does it say we have to have a mobile app to thrive within. What is important, however, is that we stay abreast of the mobile trends and adapt as necessary. As I stated in my previous post, we have to be aware that the world we’ve lived in has changed and we need to ensure our companies and brands are ready.

Resources:
A Store In Your Pocket
—NielsenWire

7 Ways Building Product CMOs Increase Financial Fluency

9 Nov

Learn how increasing your marketing department’s financial capacity can make a big difference in your business.

Especially in the building products industry, it’s more important than ever to closely monitor the dollars going into your marketing efforts. It’s no longer about the next big idea and pushing out pretty creative, today’s CMO has to focus on how their programs will affect the bottom line – and be able to prove its success with data. CMO.comtook a deeper look into how CMOs can boost their financial comprehension. Here’s our take and how it relates to the building products industry:

1. Master the ROI Calculation

  • Among the many financial concepts building products marketers should adopt, Return On Investment (ROI) calculation is key.
  • It’s important to focus on business results like customer loyalty, price premiums, growth in market share, as well as ad spend, reach and engagement.

2. Hire Outside the Box

  • Look beyond your typical agency marketers’ resumes to engineers, accountants and mathematicians.
  • Marketing can be taught and these skills are invaluable to a marketing department looking to build up their financial acumen.

3. Get Serious about Data Analytics

  • Marketers need to be especially careful when analyzing data and be sure its consistent and structured.
  • The ability to take a hard look at data analysis allows CMOs to identify the best opportunities, set priorities, execute plans and gain sales.

4. Adopt Corporate Metrics

  • To make a real financial impact on the company, the CMO must understand the ins and outs of the finances of the company, especially in the building products industry when the smallest details make a big difference.
  • Get comfortable with the profit and loss, balance sheets – anything that can make you a smarter businessperson.
  • Another way to educate yourself and your team? Have senior finance leaders host lunch-and-learn sessions to review the basics.

5. Steal from Finance

  • Borrow accounting concepts to develop new marketing analytics and track marketing and sales activities.

6. Get to Know the CFO

  • A Forrester Research/Heidrick & Struggles survey found that 69% of CMOS said their relationship with the CFO was the most important in the organization. However, natural tensions exist between these two departments (especially during tough times in the building products industry), as money spent on marketing is a line on the expense report that takes away from the company’s earnings. If the CMO and CFO understand each other, they can work together to track the metrics of success.

7. Focus on Process

  • Process leads to measurable results, a must when you sit at the executive leadership table. Just like sales reps must do when selling building products, having the marketing team focus on process over marketing tools ensures you produce results for your organization.

Sources and Additional Articles

Measurement is key to Building Product Marketing Strategy

7 Nov

Lessons from Office Depot on Measuring the Metrics that Matter to Your Building Products Organization

“The metrics you measure are the metrics you manage.” We’ve all heard that phrase a hundred times before, but when’s the last time your organization really thought about what’s being measured, and what each measure means for the business?

The past 4-5 years have brought dramatic change to all of us in the building industry and that means the metrics we measure should change as well. Below, you’ll read about a large retailer that encountered a similar challenge, and how they dealt with it. Perhaps the lessons they learned will spark a question or two for you to consider.

Office Depot thought they were doing the right things to measure the ongoing performance of their retail locations, but their President quickly realized how wrong that assumption was.

In a recent article from the Harvard Business Review, Kevin Peters, Office Depot president, detailed how the management team was struggling with understanding their sales decline, which was even steeper than their competition’s. Their customer service scores, measured through a third-party mystery shopper program, were consistently strong.

It wasn’t until Peters went out to over 70 stores to do his own mystery shopper investigation that he realized the problem – they were measuring things that, ultimately, meant little to their customers.

Even worse, measuring those things meant Office Depot employees were concentrating their time on work that did not ultimately make a difference to the customers. This research led Peters to 3 insights, which resulted in dramatic changes in their culture and operations that, so far, appear to be making a tremendous difference in results for the company.

Spend some thinking and considering: is your organization measuring the metrics that matter or are you just measuring the same things you’ve always done?

 

Sources and Additional Articles