Must-See for Managers! Creating a "Reason to Choose"! How to Build a Branding Strategy
Are you getting caught in a price war, losing customers, or losing employee motivation?If so, it is.It may be because the "reason for being chosen" is not clear.
In this day and age, it has become difficult to get customers to choose you simply by offering good products and services. What is the special reason for choosing your company in a world full of similar products and services?
In this article, we will discuss how to break away from price competition and become a company that is loved by customers and attracts the best talent.How to create a "reason to be chosen
in three easy-to-understand steps.
This article will help you discover the special reasons why your company is chosen by customers and give you concrete ways to achieve sustainable growth.
Current situation of managers who do not have a reason to be chosen
Today's business environment is changing at an unprecedented pace. Globalization, digitalization, and the diversification of consumer values.... Managers who cannot adapt to these changes and who do not have a clear "reason to be chosen" face a variety of difficulties. It is like a small boat in rough seas, unstable and difficult to see the future.Exhausted by price competition.
Companies that do not have a "reason to be chosen" will inevitably fall into price competition. If customers cannot tell the difference between one company and another, they will naturally choose the cheaper one. As a result, profit margins decline, and even the continuation of the business may be in jeopardy. In addition, a thin profit margin situation leads to low motivation among employees, creating a vicious cycle.Price competition is truly a war of attrition. The constant need to lower prices makes it difficult to invest management resources in other strategies. As a result, the company's growth is stifled and it loses its competitive edge in the market.The exodus of customers has not stopped.
Customers do not choose products and services based on price alone.Why do you want to buy from this company?" Without a clear reason, it is easy to switch to another company. In today's society, consumers have many choices. If the quality of products and services are equal, they will choose a more attractive brand or a more sympathetic company. Sustainable growth is not possible when customer loyalty is low. Customer exodus is a major loss for companies, as it is much more expensive to win back a customer once they have left than it is to acquire a new one.Low employee motivation
If a company does not have a "reason to be chosen," it will not be attractive to employees. It creates the question, "What is the point of working for this company?" and this leads to a decrease in motivation.Talented people share the company's philosophy and vision and seek an environment in which they can grow. If there is no hope for the company's future, talented personnel will leave, further reducing the company's competitiveness. In addition, employees with low motivation are likely to reduce customer satisfaction, and there is a risk that this will lead to a deterioration of the company's image.| status quo | issue | affect |
|---|---|---|
| price competition | Decline in profit margin | Business Continuity Crisis |
| Customer exodus | Decline in customer loyalty | Impediments to sustainable growth |
| Decreased employee motivation | Outflow of excellent human resources | Decline in corporate competitiveness |
Why do we need a "reason to be chosen"?
In today's business environment, having a "reason to be chosen" is essential for a company's sustainable growth. The situation surrounding companies is becoming increasingly severe, with intensifying price competition, diversifying customer needs, and competition for superior human resources. In this environment, we will explain why it is important to have a "reason to be chosen" from three perspectives.Getting Out of the Commoditization Wave
In this day and age when many products and services have become commoditized and price-competitive,Reasons to be chosen" is an important element of differentiationThis will be the case. Competing on price alone will reduce profit margins and inhibit corporate growth. By providing unique value, you can break free from price competition and achieve sustainable growth. For example, by developing strengths that competitors do not have, such as a commitment to high-quality materials, unique manufacturing technologies, and attentive customer service, you can provide customers with a reason why they should "choose this company" over others. To break free from commoditization, it is important to understand and provide true value to customers.To increase customer loyalty
Reasons to Choose" contribute significantly to customer loyalty.The company will do this. Customers become loyal to a company not simply because of the functionality of its products and services, but because they empathize with the company's philosophy, values, and the overall experience provided. For example, a company's commitment to environmental friendliness, social contribution activities, and employee satisfaction will resonate with customers and lead to increased loyalty. Customer loyalty leads to repeat purchases and the acquisition of new customers through word of mouth, and plays an important role in building a stable revenue base.To attract the best talent
Attractive "reasons to choose" are powerful magnets for attracting top talentThis is the case. Today's talented people tend to focus not only on high salary, but also on a company's philosophy, vision, contribution to society, and growth opportunities. When a company has a clear "reason to be chosen," it motivates job seekers to "want to work for this company," which is advantageous in attracting talented people. It also motivates existing employees by giving them a sense of meaning and pride in their work. Securing excellent human resources is essential for corporate growth, and "reasons to be chosen" is an important element for this purpose.| Advantages of Why Choose Us | Specific Effects |
|---|---|
| Breaking away from commoditization | Freedom from price competition, improved profit margins |
| Increase customer loyalty | Increase in repeat business and acquisition of new customers through word-of-mouth effect |
| Acquisition of excellent human resources | Strengthen competitiveness in recruiting, increase employee motivation |
Three Steps to Creating a "Reason to be Chosen".
Building a reason to be chosen - a unique value that your customers will support - is critical to the success of your business. This section describes three steps to achieve this goal.Step 1 Current Analysis
First, it is important to objectively analyze the current status of your company. By conducting a thorough analysis of the current situation, the subsequent strategic planning will proceed smoothly. The shortcut to success is not to implement measures in the dark, but to proceed strategically based on an understanding of the current situation.Determine your company's strengths and weaknesses (SWOT analysis)
A SWOT analysis, which analyzes your company's strengths and weaknesses, as well as opportunities and threats, is a powerful tool for understanding your current situation. It helps you to consider ways to further develop your strengths and overcome your weaknesses. By developing strategies to take advantage of opportunities and avoid threats, you can maximize opportunities and minimize risks.| Strengths | Weaknesses |
|---|---|
| Technical capabilities second to none | Low visibility |
| High quality products | Lack of financial resources |
| Opportunities | Threats |
|---|---|
| Market Growth | Entry of competitors |
| Emergence of new technologies | Economic downturn |
Identify points of differentiation from competitors
Conducting a comparative analysis with competitors and clarifying your company's advantages is critical to creating a reason to be chosen.Customers choose the products and services that are best suited for them from among many options. You need to clearly demonstrate why customers should choose your company. For example, analyze the points of differentiation from the competition in terms of price, quality, features, service, brand image, and so on. It is important to clarify what value you can offer to your customers.Deep understanding of customer needs
Understanding customer needs is the starting point for creating a reason to be chosen. You need to deeply understand what problems your customers have and what solutions they are looking for. By accurately identifying customer needs and providing products and services that meet them, you can increase customer satisfaction and become the company of choice.By listening to customers and conducting surveys and interviews, we can understand their true needs.Step 2 Define Unique Value
Based on the analysis of the current situation, define your company's unique value. This is the core element for being chosen by customers.Reaffirming our philosophy and vision
Reaffirming the philosophy that defines the company's raison d'etre and the vision that defines its future image are important guidelines in defining its unique value. By clarifying the value to be provided to customers based on the philosophy and vision, a consistent brand image can be built.Philosophy and vision also motivate employees and promote overall corporate growth.Clearly articulate the value you provide
Clearly verbalizing the value you provide to your customers will help you increase your appeal to them.By showing specific benefits to the customer, it is easier for the customer to understand the value of the product or service. Clearly articulating the value of your offerings also plays an important role in your marketing strategy.Narrow down target customers
No product or service is acceptable to all customers.Narrowing down the target customers will enable more effective marketing activities. By analyzing the needs and behavioral characteristics of target customers and developing products and promotions tailored to them, you can increase your customer acquisition rate. You can also build a competitive advantage by specializing in niche markets. Focusing on a specific customer segment, rather than targeting the entire market, can lead to higher results.What is targeting? Types, how to set up, and successful examples｜ferretStep 3: Information dissemination and customer experience design
Design measures to effectively communicate the defined unique value to customers and have them experience it through the customer experience.How to effectively communicate why you should be chosen
In order to effectively communicate the reasons for being chosen, it is important to disseminate appropriate information tailored to the target customer. For example, various channels such as websites, SNS, advertisements, and PR can be used to deliver messages to customers.By telling stories that resonate with customers, it is easier to gain their empathy and improve the brand image. It is also important to build trusting relationships with customers by increasing contact with them.Disseminating information through websites and SNS
Websites and SNS are important tools for information dissemination.Websites provide corporate and product information and create points of contact with customers. Social networking sites allow for two-way communication with customers and create empathy. Effective use of these tools can improve brand image and attract customers.Measures to enhance customer experience value
To enhance customer experience value, it is important to understand customer behavior and psychology and design services from the customer's perspective.By providing the best possible experience at every point of contact a customer has with a product or service, we can increase customer satisfaction and attract repeat customers. Examples include courteous customer service, prompt responses, and personalized service delivery. By enhancing the value of the customer experience, we can expect to improve our reputation through word-of-mouth.Branding strategies to effectively create a "reason to be chosen" by management.
Having a "reason to be chosen" is a prerequisite for achieving sustainable growth in today's competitive business environment. In order for management to effectively build a "reason to be chosen," a systematic branding strategy is essential. This section describes the specific steps to achieve this goal and the key points at each step.Competitive Analysis
Competitive analysis is essential to objectively understand your company's position and to formulate differentiation strategies. By not only understanding the current status of your competitors, but also predicting future trends, you can formulate more effective strategies.Analyze the strengths and weaknesses of the competition
Competitors' products and services, marketing strategies, and business conditions are analyzed to identify strengths and weaknesses. It is important to analyze from multiple perspectives by utilizing publicly available information and customer feedback. For example, we investigate what kind of pricing strategies competitors are using, what kind of customer segments they are targeting, what kind of sales channels they have, etc.Find out what differentiates us from our competitors
Compare the strengths and weaknesses of your company with those of your competitors, as identified through competitive analysis, and look for points of differentiation.Consider all aspects of price, quality, features, service, brand image, etc., and clarify your company's unique strengths. Ideally, it should have elements that competitors cannot easily imitate, such as proprietary technology, know-how, and strong relationships with customers. Another effective strategy is to focus on niche markets that competitors do not cover.customer understanding
Customer understanding is the foundation for capturing customers' true needs and providing optimal value to them. By gaining a deeper understanding of customer behavior and psychology, we can develop more effective marketing strategies and increase customer loyalty.Understand customer needs and wants
It is important to clearly distinguish between customer needs and wants and to accurately capture each. Needs are the fundamental problems or desires that customers have, while wants are the specific means or desires to satisfy those needs. For example, if a customer's need is "I want a means of transportation," the wants can be expressed in specific car models and features, such as "a car that is comfortable to ride in" or "a car with good fuel efficiency. In order to understand customer needs and wants, surveys, interviews, and customer data analysis are effective.Persona setting and customer journey map creation
Persona setting is the process of defining the target customer as a specific persona. Detailed information such as name, age, gender, occupation, hobbies, lifestyle, values, etc. can be set up to better understand customers and develop more effective marketing initiatives. A customer journey map visualizes the behaviors and psychology that lead customers to purchase a product or service. By tracking customer behavior in chronological order, it is possible to discover issues and areas for improvement in the customer experience and consider measures to increase customer satisfaction.Value Proposition
To be chosen by customers, you must offer a unique value proposition that your competitors do not have. By clearly defining and effectively communicating your unique value proposition to customers, you can establish a competitive advantage in the marketplace.Formulate a unique value proposition (UVP)
A UVP (Unique Value Proposition) is a clear statement of your company's unique value to customers.Clearly identify the differentiators from competitors and emphasize the benefits to customers to give them a clear reason to choose you. When developing a UVP, it is important to focus on areas where the company can leverage its strengths based on customer needs and wants.Identify the benefit to the customer.
Customers are not interested in the features of a product or service, but in the benefits they derive from it. By clarifying the benefits for customers, you can motivate them to buy your product or service. For example, the benefit of "beautiful photos to capture memories" is more attractive to customers than the benefit of a "high-performance camera. It is important to put yourself in the customer's shoes and communicate specifically how your product or service will help them.information transmission
Effective information dissemination is essential to ensure that customers understand the value of your product. Selecting the right channel and tailoring the message to the target customer can increase customer engagement.Inspire empathy through storytelling.
Storytelling is an effective method of appealing to the emotions of your customers and generating empathy. By conveying the company's philosophy, vision, and the ideas behind its products and services through stories, it is possible to build an emotional connection with customers and nurture their attachment to the brand. For example, by telling stories about episodes of the company's founder or the background of product development, you can evoke empathy from customers and improve your brand image. For more informationStorytelling for Empathyfor reference.Information dissemination strategies utilizing SNS, blogs, and media
SNS, blogs, and media can be used to deliver information to a broad customer base. It is important to understand the characteristics of each channel and tailor information dissemination to target customers. For example, if your product is aimed at young people, a visual-oriented SNS such as Instagram or TikTok will be effective. On the other hand, if your product is aimed at business people, a business-specific SNS such as LinkedIn is appropriate. By understanding the characteristics of each platform and distributing the most appropriate content, effective information dissemination can be achieved.Customer Experience
The customer experience is the sum total of the impressions a customer gets from all interactions with a brand. By providing a consistent brand experience, you can increase customer loyalty and achieve sustainable growth.Provide a consistent brand experience
It is important to provide a consistent brand experience across all touch points where customers interact with the brand, including the website, physical stores, and customer support. For example, the design of the website, the atmosphere of the physical store, and the responsiveness of customer support should be consistent with the brand image. Providing a consistent brand experience will increase customer confidence and reinforce the brand image.Measures to increase customer loyalty
Building long-term relationships with customers is important to increase customer loyalty. Implementing reward programs for loyal customers and personalized communications can increase customer engagement and repeat business. For example, offering special experiences to customers, such as point programs, members-only events, birthday e-mails, etc., can increase customer loyalty. By continually strengthening customer relationships, you can achieve sustainable business growth.Case Studies Successful Companies by Reason of Choice
Here are three case studies of companies that offer unique value and clearly articulate why they are chosen by their customers. Let's take a hint from the success stories of these companies to help you build your branding strategy.Case 1: Hoshino Resort
Hoshino Resort does not stop at hospitality,Unique Experience ValueThe company has gained the support of many customers by offering The unparalleled lodging experience, which takes advantage of the local culture and nature, has created an enthusiastic fan base and has enabled the company to operate without price competition. A sense of the extraordinary."The company is making an unparalleled distinction by providing experiences that exceed customer expectations, including space design that creates a "home away from home" atmosphere, activities rooted in the local community, and attentive service. It is also noteworthy that the know-how cultivated through resort operations is being applied to hotel operations in urban areas, attracting new customer segments.| (data) item | Details |
|---|---|
| Why Choose Us | A one-of-a-kind lodging experience that makes the most of the region's charms |
| Success Factors | Providing unique value based on a thorough understanding of our customers |
| Target Clients | Tourists looking for a special experience |
Case 2: Uniqlo
UNIQLO has been working with theHigh quality and low priceBy offering a clear value proposition of "the best value for money," we have grown into a global apparel brand. Through its SPA model, in which all processes from material development to production and sales are carried out in-house, the company offers high-quality products while maintaining low prices. Also,Simple and functional designare supported by a wide range of customers, transcending time, age, and gender. In addition, HEATTECH and AIRYTHMInnovative Material Developmentis also one of UNIQLO's major strengths. By constantly identifying customer needs and continuing to evolve, UNIQLO continues to be the brand of choice.| (data) item | Details |
|---|---|
| Why Choose Us | High-quality, low-cost products that combine functionality and design |
| Success Factors | Efficient production system based on SPA model and product development tailored to customer needs |
| Target Clients | Wide range of ages and gender |
Case 3 SANU 2nd Home
SANU 2nd Home is located in the "Another house in natureWe offer subscription-based second homes under the concept of Responding to the needs of people who want to spend relaxing time in nature, away from the hustle and bustle of the city,New LifestyleWe are proposing a The simple yet sophisticated design of the cabins, the variety of locations across the country, and theFixed monthly feeThe ease of use of this service has gained the support of many customers. By capturing the diverse work styles and changing values in today's society and providing unique services, we are developing new markets.| (data) item | Details |
|---|---|
| Why Choose Us | Easy access to a second house where you can spend time in nature. |
| Success Factors | Proposing a new lifestyle that meets the needs of modern people |
| Target Clients | People who want to refresh themselves in nature and are interested in living in multiple locations. |
Points to keep in mind in creating "reasons to be chosen".
Creating a "reason to be chosen" is critical to your company's growth, but there are a few caveats. Failure to follow these precautions may result in wasted effort. Be aware of customer focus, consistency, and continuous improvement to create an effective branding strategy.Thinking from the Customer's Perspective
The "reason to be chosen" must be of value to the customer. Rather than pushing your strengths, a reason to be chosen is something that satisfies the needs and wants of the customer. It is important to think from the customer's perspective, with a deep understanding of what they want and what challenges they face.Clearly demonstrate the benefits to the customer and be sympathetic.For example, actively collecting customer feedback and conducting surveys can help to understand customer needs. Also, establishing personas and creating customer journey maps are effective means. By deepening your understanding of your customers, you can create "reasons to choose" that are truly valuable to them.Maintain consistency
The "reason to be chosen" does not end once it is created.It is important to be consistent with the brand image and message and to communicate it on an ongoing basis.By communicating a consistent message across all customer touchpoints, including websites, SNS, advertising, and brick-and-mortar stores, you can strengthen your brand image and gain customer trust. For example, brand guidelines can be created and shared internally to ensure consistency in brand messaging. It is also important to clearly identify the person in charge of each customer contact point to ensure close collaboration. Providing a consistent brand experience will help build customer loyalty.Continuous improvement
The market environment and customer needs are constantly changing.Reasons to be chosen" are not created once and never finished, but must be continuously improved.By collecting and analyzing feedback from customers, we can identify areas for improvement and evolve into a company that is chosen by more customers. For example, by analyzing website access and customer inquiries, points for improvement can be identified. It is also important to conduct A/B testing to verify effective measures, and by implementing the PDCA cycle and making continuous improvements, you can always remain the company of choice for your customers.Examples of specific measures in each item
| (data) item | Examples of measures | Expected Effects |
|---|---|---|
| Thinking from the Customer's Perspective | Conduct customer surveys, conduct customer interviews, and conduct social listening | Understand customer needs, identify customer issues, and improve customer satisfaction |
| Maintain consistency | Create brand guidelines, conduct internal training, and clarify who is in charge of customer contact. | Unify brand image, improve customer experience, and enhance brand loyalty |
| Continuous improvement | Analyze website access, collect customer feedback, and conduct A/B testing | Increase customer satisfaction, improve services, and secure competitive advantage |
summary
In today's business world, competing on price alone can lead to intense competition, resulting in low profits and customers flowing to other companies. Therefore,It is important to create a good reason for why your company should be chosen.To do this, first analyze your company's strengths and weaknesses, the characteristics of your competitors, and what customers are looking for. Next, based on your company's philosophy and direction, clarify what kind of value you offer, and decide what kind of customers you will communicate to. Then,It is important to utilize websites and SNS to convey information in an easy-to-understand manner and to ensure that customers actually have a good experience.
For example, companies such as Hoshino Resort and UNIQLO have continued to grow by clarifying their "reasons for being chosen" and continuing to communicate them. By thinking from the customer's perspective and continuing to consistently disseminate information and improve services, your company will become the brand of choice for many people.
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