- Many times, brand proponents make the implicit assumption that a brand in itself helps a establish a sustainable competitive advantage or a “moat” as Warren Buffet calls it. ?Buffet uses Coca Cola as an example where you can’t beat their brand is so strong. I disagree. They have massive distribution and distribution relationships. ?However, if someone offered their distributors a better deal that they could back up, why wouldn’t they switch?
- I truly believe many people overestimate how loyal consumers are. Consumers are fickle. They will switch if you have a better offer, you can justify the switching costs, and you make it easy.
- However, a credible reputation, a cousin of branding, is far more important than branding.
- To me, a great reputation includes characteristics such as integrity, politeness, speed, leadership, quality, aggressiveness, fairness, knowledge, honesty, and reliability.
Even if you’re extremely well known through massive branding, consumers will select your competitors based on either indirect or direct reputations, which you can establish in mere seconds.
How do you establish a fantastic reputation? The following are some examples:
- Do what you say you will; be on time and early
- Go above and beyond
- Create fantastic communication
- Draft agreements with integrity; don’t screw people over
- Be more transparent
- Find a win-win and don’t be greedy. Think about the other person’s interests.