
October 6, 2011
Then what happens if the customers you’re attracting are all wrong?
In the pilot episode of the 70s British comedy “Fawlty Towers,” Basil Fawlty, the hapless owner of a small hotel on the English Riviera, takes out an advertisement in the local paper. The headline reads: “No Riff Raff.”
Basil’s wife Cybil just wants to fill the rooms. Although Basil’s methods (and copywriting skills) may be questionable, his theory regarding attracting the “right” kind of customer has some merit.
Brands are co-created by the companies that sell them and the customers that buy into them. And if the customers buying your brand aren’t aligned with the values you’re trying to project, you can end up with short-term profitability, but long-term troubles.
Take one of Canada’s most iconic brands, Hudson’s Bay Company, as an example. In the 80s and 90s, in a desperate attempt to avoid the fate of other large department stores struggling to maintain a client-base, The Bay started to cater to the masses with its “One-Day Sales,” “Bay Bonus Days” and “Scratch and Save” promotions. The problem, one Bay executive explained in hindsight, was that customers would then only shop on those days.
Customers no longer expected to pay full price for anything at The Bay – and instead of being loyal to the brand, they became loyal to the deal. Merchandise had to be selected based on price, further alienating The Bay’s original customer base, which had grown up with the retailer standing for quality. As a result, The Bay has spent the better half of the last decade trying to change this by re-educating the market on its values, and attracting customers who are aligned with them.
Now that’s not to say that you can’t build a brand with a value-driven customer base – because the Targets, Walmarts and McDonald’s of the world would prove otherwise. But the difference is that their brand values are about value. And if yours isn’t, if your brand stands for quality, innovation, or history, then you have to ensure your customers do, too. Otherwise, your brand promise is left unfulfilled.
We’ve all been there. When the bottom line is the bottom line, it can be tempting to take on clients who want you to compromise on your process, or promote your brand to a customer-base just for the sake of short-term profits. But one must always remember that there’s a greater cost associated with every transaction that aligns your brand with the wrong type of clientele. Saying no can be one of the most difficult words to say in business – but for a brand manager, it can be one of the most powerful.
Posted in Uncategorized