Brilliant Ideas

#17: Reid Holmes on Appreciated Branding: How to Build Emotional Connections with Customers

• Alyssa Bellisario • Season 1 • Episode 17

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Reid Holmes, author of "Appreciated Branding," reveals how to transform your brand from ignored to irreplaceable by focusing on emotional connections rather than traditional USPs (unique selling propositions).

• Proving to customers that you care about them is more effective than paying to make them care about you
• Traditional USPs fail in today's saturated markets where rational differentiators have minimal impact
• The "unique emotional solution" identifies tensions customers experience and positions your brand as the remedy
• Success stories like Ariel's "Share the Load" campaign in India that increased sales by 76% by addressing cultural tensions
• Small businesses can achieve better results with appreciated branding than with expensive advertising campaigns
• Finding your "one word" brand focus creates clarity and consistency across all customer touchpoints
• Avoiding the "plateau of indifference" by creating genuine value customers actually thank you for
• Values-based targeting connects with people based on shared beliefs rather than demographic data
• Focus on helping customers become better versions of themselves within your category

Find more about Reid's work in his book "Appreciated Branding: Transform your Brand from Ignored to Irreplaceable" or download a free chapter at reidholmes.com.

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Reid:

Marketers spend millions and business owners spend millions to convince people to care about them, because they're only talking about their product or what their product is or what it does. The way things have shifted is you need to prove to your customers that you care about them, not pay to get them to care about you to get them to care about you.

Alyssa:

Welcome to Brilliant Ideas, the podcast that takes you behind the scenes of some of the most inspiring digital products created by solopreneurs just like you. I'm your host, alyssa, a digital product strategist who helps subject matter experts grow their business with online courses, memberships, coaching programs and eBooks. If you're a solopreneur with dreams of packaging your expertise into a profitable digital product, then this is the podcast for you. Expect honest conversations of how they started, the obstacles they overcame, lessons learned the hard way, and who face the same fears, doubts and challenges you're experiencing, from unexpected surprises to breakthrough moments and everything in between. Tune in, get inspired and let's spark your next big, brilliant idea.

Alyssa:

Welcome back to the Brilliant Ideas Podcast. Joining me today is Reid Holmes. He is the author of the number one bestselling book, appreciated Branding Transform your Brand from Ignorant to Irreplaceable. It has become the go-to playbook for any business looking to stand out in a crowded market. If you're ready to learn why your unique selling proposition may not be working or how to drive huge marketing results without a big budget, this episode is for you. Let's dive right in. Welcome to the show, reid. Thank you so much for being here.

Reid:

Thanks for having me. I'm excited.

Alyssa:

Me too. Now, in your book, you mentioned something about the attention as being the oxygen of marketing, and up until this point, our understanding of getting attention from our customers stems from being clear about our unique selling proposition, and for decades, that single differentiating statement was enough to drive sales. But in today's hyper saturated market, where people want a deeper emotional connection, they want more authentic experiences with their brands, or buying from it might not cut it anymore, and so this raises a crucial, crucial question that I am even so curious about why do you think that the unique selling proposition is ineffective or even outdated?

Reid:

There's a few different ways to answer that, a few different things that I think go into that. First of all, when Rosser Reeves invented what he calls the unique selling proposition, it was back in an era where product categories weren't so saturated with options and I say this as part of one of my talks is go stand in the laundry detergent aisle at any big box store and you'll see at least 30 different brands that all solve the same problem. How can each of them be rationally unique? Whiter whites, three shades whiter whites, three shades whiter whites, with perfume that you like to smell? I mean, at what point does it just become too much for people to deal with? So, or to process? Because that's the other thing that makes the unique selling proposition somewhat obsolete, particularly in crowded categories. We are all getting hit with 10,000 messages a day, 10,000 interruptions. How do we know what to pay attention to? It certainly isn't going to be some product that says you know, now, with flavor crystals or whatever. It's just, it's just not. It's not a way to differentiate yourself anymore in a more in the most effective and breakthrough way possible. And so that's another reason why I think the unique selling proposition is is become obsolete. It's not totally obsolete. There are products that are rationally different and usually they're newer products that create new categories, like Uber, for example. Now, I get that. I get the rational benefit of that of Uber making you know, kind of democratizing the ability to get a ride, and I get that that's newsworthy. But when you don't have news like a new product or you don't have the money to invest on an entirely new product, you need something I call the unique appreciatable solution. I call it in the book the unique emotional solution. They're interchangeable, but the idea basically is how are you helping me with your?

Reid:

So, as an example, a mentor of mine and I've mentioned this before too, but it's very applicable here A mentor of mine talks about how he had a client who was a tennis pro and this guy kept saying I got tennis, tennis lessons, who needs tennis lessons? And nobody really cared. And my argument is he could even be saying you know, if you have a weak forehand, I'm your tennis guy because that's my area of expertise and you might get a few more. You know, I don't know if you're going to blow it up what he decided is he realized that adjacent to tennis are a population of people, um, parents whose kids are running them ragged, and so his proposition was who's got? Who's got kids that you'd like to learn a lifelong skill? I'll take them out onto a tennis court and tire them out for an hour and you guys get a break.

Reid:

All of a sudden, his business exploded because of that unique, appreciable solution. Suddenly it's like oh yeah, that's a help to me that I get, and so that's what I'm talking about. Is it's not about the rational differentiator, particularly in these crowded categories, because there's just too much crap for people to think about If the way they're going to pay attention to is if you solve a problem, if you go oh, that's a problem I need to solve right now. Okay, yeah, I need that. So that's kind of what I'm talking about.

Alyssa:

Okay, so then your unique emotion solution. So how can a brand or a business start the process of finding out what they could solve that invokes like that kind of emotion, like that tennis pro who now offered parents and kids you know, tire them out, like how could they start the process of figuring that out for their own business?

Reid:

most of the time it starts with a, an interesting cultural data point. Um, but it but it doesn't have to. So if you look at your category, or even your product, and you think about the, the, where it sits and what things are adjacent to it, um, another example I use is the laundry example, uh, which is in my book, but um, you know, the. There are two brands in that go to head to head, head to head in um india. One is called aerial and one is called surf, and their laundry detergents, laundry powders, and every I don't know probably every quarter there, one or the other is spending millions to try and get some little right of the decimal point growth, share, growth. So at one point back in this was 2017, and this is one of the cases that really animated me about this idea of appreciated branding. Ariel realized that they found this data point that 95 of the people in india still thought laundry was a woman's job, and, well, there's a tension that needs relief, and that's another ingredient of this is like is there an existing tension that you can help relieve? For tennis, it was. My kids are driving me nuts. For this particular example, it's. Why do I have to do the laundry all the time. Why can't anybody else help?

Reid:

And the brand decided to step into the fray and say you know what we can help with that? We're going to use our voice to advocate for others in the family. And the campaign was called Share the Load and it was hashtag Share the Load. They did this and they basically got thanked by their best customers for doing it, to the tune of an increase of 76% in sales. Now, you don't get that from just promotional marketing. You don't get that from just a promotional ad. You have to find a way to really help proactively and then you get thanked. And that's why they call, or I've called. Money is kind of just another thank you note.

Alyssa:

It is. Yeah, this is interesting, this existing tension. That's a key word here, and you dive into this idea of appreciated branding in your book and, from what I gather, it's shifting from this idea of just. You know, any promotional ad can say, like, buy my stuff. Today, you know that mindset that you know, buy my stuff, here it is, but that's not really enough anymore and what you actually want to do is you want to build a brand or a business where people appreciate and that's exactly what you had shared with the laundry detergent, and so what I'm thinking about it is like, once you do that, once you find that existing tension, that when people think about your product, they're not just remembering that it's okay, laundry detergent, but you're, it's, that's how also they, how you, how they feel after from you know, oh, like they're sharing the load.

Alyssa:

It's not just a women's job, and so that's interesting, um, and this is actually very realistic for business owners, I think, who are likely to have a lot of success with appreciated branding. I want you to go more into more detail about this and just really simplify it, um, and what it is and what it does, because I think that small business owners are going to have a lot of success with this, because they can curate a very loyal fan base from, you know, doing something different with their marketing, and a lot of small business owners do not have a big budget to spend on marketing, so this might actually be a good perspective and a good method for getting out to the right kinds of people. And so how can you or how can they see results without throwing money on ads or having to spend a bigger budget with a that a lot of these solopreneurs just don't have?

Reid:

Well, you need to find that tension point. So I'm actually speaking to a bunch of chiropractors tomorrow and I was just looking at chiropractor sites and the way that they're so OK, let me back up one step here. Marketers spend millions and business owners spend millions to convince people to care about them, because they're only talking about their product or what their product is or what it does. The way things have shifted is you need to prove to your customers that you care about them, not pay to get them to care about you your customers, that you care about them, not pay to get them to care about you, because when you're paying to get them to care about you, there's no emotional connection there. There's no. It's all about the product and not whip um kind of example.

Reid:

So deluxe check is a company in the twin cities where I am and they have. They've been known for decades as as basically making checks for people home. You know, checks for your checking account, checks for business checks, checks, check checks and they have been depositioned and de-cared about because electronic financial transactions have become the norm, so a lot of most people don't need checks anymore. The ones that do still use them are dying off and god love them, uh, or they're in front of me at costco, which happens, although costco banned checks, um, but um, the point is that, um, what, what deluxe did? And I talked to amanda brman she's the one that was the chief marketing officer there. She said we were being outspent 11 to 1 by all these other companies that are offering offering full suites of business services for people who have small businesses. Did, is they decided what we're going to do? Is we're going to do? We're going to have a? Um, um, well, they call it the main street revolution, small business revolution, and they they basically had towns compete for a fifty thousand dollar grant to for for the main street businesses, and when that grant was awarded, they made a big splash video and whatever. And then they brought in Amanda actually went in and was one of the people in what became about a six to eight episode series, and they would go into these small businesses and they would help those small businesses learn how to grow. What should their website be doing? You know how can they be capturing more customers? Uh, what? What kind of? Um, you know kind of main street events could they plan with other business owners to try and drive more traffic? All of these things became this show called small business revolution and the the people on that main street, the people who were small business owners of which obviously there are millions watched that show because they were getting utility from it. They had questions and no one was giving them the answers, except these guys stepped in and said here's how your site should work, here's how to get more profit from this or whatever.

Reid:

That show went on for six seasons. It was nominated for an Emmy and, according to Amanda, their performance, marketing okay, the money, the marketing. They spend money on direct mail, paid advertising. The results went up like 10x because people recognize oh, I know that logo. They're not the old deluxe from years ago. They're helping me out and this might be something that fits in with other ways. They've been trying to help me and so that's one way you do it. To get more granular on your question, which was you know how, how can a small business do that? Well, first I'd suggest watching that series. I think it's still out there. It's probably on YouTube.

Reid:

But in addition to that, what is your main message on your website when you, when people land? What reason are you giving for them to care about you? Is it? Sign up today and save money. You might catch a few fish, but you're not going to differentiate yourself and you're racing to the bottom. Branding is not about price cutting, building up value so that you can command healthier margins in exchange for confidence, trust, know-how, knowledge, all of those things. So if you're trading only on price, you're never going to grow and become and I mean financially with people who believe in what you stand for. So you have to stand for something, and when I talk about these chiropractors, you know.

Reid:

One of the things I want to talk to them about is what? Why did you get into this business? What? What are your values? That's a better place to start. There's a whole other science of targeting that's kind of coming along here in the last three or four years and it's called values-based targeting. And instead of saying, well, I want to talk to Generation Z about my Patagonia jacket or whatever values targeting is, I want to talk to a cohort of people who love adventure. Those are the people who'd probably want to buy one of my jackets and they're not necessarily as price sensitive because they want something that's going to help them live that type of life. So what are you doing? I guess the other question is what are you really selling? And it isn't a rational solution, particularly in crowded categories.

Reid:

It's usually something that has an emotional underpinning of tension to it that someone goes oh, finally someone recognized. It's a lot like I'm kind of going off here alissa's oh good, you buy the ticket, you get the ride right, so, um, so, uh, you know the, the point being that, um, if you, if you find something in the ether, in culture, in society, that that has that tension that has not been addressed, and you come along to solve it, you are going to leapfrog because people are going to go. I mean, it's kind of like a joke, right? I talk about this in my book too. Is comedy, comedy is just truth that no one else has recognized, right? So? And the reason it's truth is because it's recognized and processed and it's involuntary. You can't, if you find something funny, you will involuntary. You can't. If you find something funny, you will laugh at it. You can't, you can't just decide to laugh, you know. And it's the other thing, like if if I used to tell my creative teams if you have to tell me something's a joke, it's not funny, it has to evoke that, that, that that response that is uncontrolled. It just kind of happens that way. That's the kind of thing you're going for.

Reid:

What is that thing in life and in the world that you can help with? You know, the bigger thing for a chiropractor might. I don't even know what it would be, I've only started thinking about it, but there's probably something in the, in the, in the tension of needing chiropractic services, that you could uh leverage. That will make you stand out among the litany of other chiropractors who are all trained the same way. They all know the same things. They all you know will give you the adjustment, um, but what is it they really believe in?

Reid:

Maybe one chiropractor really believes in a very ethereal kind of. You know, they make the whole experience of getting your adjustment. They put some kind of aroma in the room. They have white sheets hanging everywhere. They make it feel relaxing and feeling. You know, how are you differentiating yourself? Because oftentimes it's not just what you say but it does have to come from what you do. You know, if you got into a certain business because you had a deep seated desire to help people do X, how are you living that out? What are you doing to help solve that bigger problem for them?

Alyssa:

No, that's really helpful. It really shows a different and a fresh perspective. And also, like, when we think about it, when we're making decisions about who to buy from, 95% is subconscious emotions, and so we're not really thinking logically. When we're looking at something, we're we're going by our gut reaction of like what we feel, yeah, yeah, so, and so this kind of goes on to my next question about the plateau of indifference.

Alyssa:

So what I understand a plateau of indifference is that you're in this weird space where your brand is just simply existing without kind of sparking any kind of reaction from your audience and let me know if I'm wrong about this, but I would imagine like nobody kind of wants to be in this space where you're kind of forgotten about, like you're just, you just exist, but you're not, no one is really looking at you or you're not really in the spotlight. And so for me I'm, you know, for my audience and for my listeners, I'm sure would you be able to share some strategies on how to avoid this plateau of indifference where you kind of slip between the cracks, you're not really, you know, making an impact, doing those things that you talk about, that you talked about in your, in your just previously. How can we avoid that?

Reid:

didn't just previously. How can we avoid that? Yeah, so the plateau of indifference is a place that I defined in my book, and it's more mature brands or mature categories end up there, and there's a reason why global ad spending is projected to pass the $1 trillion mark in this next year or year and a half, I think and the reason is because, when all you have is a hammer, every problem looks like a nail. I know that's a cliche and everybody says that, but, marketing directors, it's so hard to keep up with everything. It's so hard to keep up with how things are changing. Keep up with how things are changing. All the digital tools, all the retargeting, all the AI-driven messaging and auto whatever. It's becoming less and less personal, even though the phrasing is personalized branding, it's out of control and you don't need to spend a ton of money. In fact, I would argue that if you want to get off the plateau of indifference, you need to find a way to talk about yourself. That's just different, and that's what I help people do, and that's the thing, because one of the things I talk about and this relates to the plateau of indifference in a world where you're getting hit with 10,000 messages a day there are messages that are getting through, and guess what those ones are? They're the ones that you already care about. They are on topics that you are already tuned into. I call it a mental radio station. If you have kids and someone says I've got tennis lessons, that's not going to, it's not going to come on through that channel. But if you say, if you have kids and they're driving you nuts, okay, now, now I'm listening. Now I want to hear what you have to say, because I identify with that problem. So help me identify with how you can make my life better is really the way to get off the plateau of indifference. It's not spend more money and interrupt me in more places and obnoxiously track me everywhere on the Internet. That's not. That's not how you get off that plateau. In fact, in many ways that exacerbates the problem.

Reid:

I have an example. I once searched for a canoe paddle and, um, I got hit with canoe paddle ads everywhere I turned and I was just like what if I already bought one? Or what if? Uh, you know, I just happened to errantly search canoe paddle when I met canal or something in my newsletter about this. Don't personalize me based on what could have been a fat finger input or could have been something I've already purchased.

Reid:

If I'm looking for a canoe paddle, help me be a better canoer. Help me find ways to provide content for me, to help me learn the difference between a wooden paddle and a plastic paddle. Help me understand. You know where I can get information about when certain rivers are cresting and are safer to canoe, or when they want, when I you know I want. Help me understand. Help me be a better canoer, instead of just trying to find me everywhere I go to sell me a canoe paddle that is appreciated branding. Now you've got my attention for something that you've been kindly helping me with and I'm much more predisposed to want to give you my money because you've been generous, you've been helpful. That's just the way humans work. It just has to carry over to what you'd call marketing, but it's really just being a good human being.

Alyssa:

Wow, that's a really good take on it. I'm not thinking this for my business as well. This is a good lesson for me too, and so do you find that I'll give you my Venmo you can yeah, and do you find that people know that they're in that plateau of indifference, like, do brands know this, or is it something that you have to point out for them?

Reid:

If people are thanking you for your product and your efforts and your service and how you deliver it, you're probably not on the plateau of indifference. If no one's thanking you, and if you have to discount with price or find other ways to get people to care about you, you're probably on the plateau of indifference. If you're a marketing director and you're going, I just can't break through. I got to go, I got it. I got to either do something really crazy creatively that makes people pay attention to my ad, or I got to go talk to my CEO and CFO and get more money because I just don't have the share of voice that's getting me the traction I need. It's not about that anymore. It just isn't. You've got to find ways to be generous and kind and it's cheaper. You don't have to open a new plant. You don't have to. You know kind of create some new whizzy-doos it product. You know, one of the jokes I have in my book is you know the ur problem. So now it's um cheesier. You know, now doritos are cheesier. I knew they were were holding out, I knew it. I knew there was a potential for more cheese and they just never did it. I mean, these are things that just no one's sitting there going. You know, these Doritos are good, but I wish they were cheesier. You know, what do people want? What problems do they need to have solved? That you can help solve.

Reid:

And and oftentimes in major products like those things, those consumer packaged goods it starts with entertainment. It starts with getting that response that you're being thanked for how you talk to them, for how you sell to them. Progressive is a great example. I would bet Progressive has overtaken Geico in terms of favorability because their, their work is so entertaining and I thank them for that. You know, I look at a Geico spot and unfortunately they have really slid over the last few years and I don't feel that gratitude, that that appreciation for that 30 seconds that they just interrupted me with. But when the guy says, you know, don't become the parents or your I can't remember the phrase, but it's like you know, don't become your parents or whatever. And you know, I just saw one the other day with these dudes in the backyard with their fire and there's one guy tries to build a fire and the other guy's like oh, it's not a good start, it's just funny and entertaining.

Reid:

And when you're talking about mass brands like that. That's one way to get appreciated. But when you're talking about a smaller business, provide some utility. Find a way to help make people better versions of themselves in your, in your category and how your category helps. That's, that's the the trick. You know there's also. I'm sorry, I'll keep going, but there's one other thing. I just was reading um seth godin has a book out, came out last fall called this is strategy, and one of the things he advocates for is and he just says, mass marketing is just waste.

Reid:

Now your best bet is to find the 10 people who most want what you have and who most want it because of the way you do it and the values that you evoke, and they will be your marketing because they'll. Each one of them will find, you know five or 10 people and it blows up from there. So that's, that's a really cool strategy. I've just started, just got through that little chapter and I want to dig further in, but but it's a great book. You know he's very poignant and he's very focused. Seth Godin, this is strategy and recommended.

Alyssa:

Yeah, that's great and that's so interesting, and it's all about the customer experience. Like, even for small business owners, I think that there is a better, even a better, opportunity to really hone in on the customer experience and really taking care of who is purchasing from you and who's using your services. That is how you can effectively grow and scale your business. And so, as we kind of shift gears into my next segment, this is called Brilliant Bite of the Week and this is where I share a, or my guests share, a quick, laser focused tip that they can use right away. So you've shared tons of tips, but if there is a sneaky another one over there, tons of tips, but if there is a sneaky another one over there that you can also share, what is one mantra, insight or strategy that you can share that my listeners can use right away?

Reid:

Find that one word that describes what you're known for and everything they do ladders up to that, I think southwest is southwest airlines is freedom. You know you're now free to move about the country. Um, what do you do? That ladders up in everything you do in your business. How do you live up to that singular proposition, that singular thing I think Walmart's value. What is that single thing? What do you really sell?

Reid:

There's an old thing from kind of I can't remember where I read it decades ago, but back before I think GM was becoming GM, and someone said to the leader of GM at the time you guys sell cars, right? And he said no, we sell transportation. We tell we sell transportation. That's what we do. We are about transportation. Now, all of a sudden, it's not just cars anymore. They make buses. They helped with all kinds of other things that are about that focused idea of transportation. So ask yourself that question what is the one thing I do? That one word that my brand lives under Thesaurus has helped with that.

Reid:

Looking at your competitors and kind of going, well, what do they stand for? What do they stand for? And then where can I fit into that? Where can I be different? That helps. And I think the other thing is knowing where. Where the tension lies is. Is there unreleased tension in a category that no one has found or figured out? The singular thing, the one word I mean that can be really helpful. And in a sense that's what I did with my book. I was like what is the one thing that the best work I've ever done has in common with the best work that I'm jealous of that's being done out there? That's also driving the best results? And that singular thing was appreciation. It's being appreciated thing was appreciation. It's being appreciated. It has a redeeming value. That isn't just about what the person trying to sell me is trying to sell. It's about what they're doing to try and help me. And oh, by the way, they sell this thing.

Alyssa:

Yeah, that's great. That's such helpful. I know it was a long answer, but that was great. I love that. Even my one word is simplify. That was great. I love that. I even my one word is simplify, because I just like to simplify all the tech, so to remove all those headaches when it comes to building your funnel and doing automations and things like that. That's where my expertise is.

Alyssa:

But so now that I just want to recap quickly of what we've talked about today, because we touched on a lot of different things we talked about. You said prove to your customers, you care about them. So I feel like that's a really big one to think about. Also to think about value based targeting, and then also for my listeners to think about what their main message is, what their one word, that they stand for, what is that existing tension?

Alyssa:

I feel like you've touched on so many good things here that I've written down. I'm just like this is so good, even your unique emotion solution, like I had never even thought about that. That's such a great framework to kind of start and think about, of what differentiates you from everybody else who also sells the same thing, and so I just want to thank you, reid for coming onto the show today and sharing all of this incredible insight with us that I can take away. Even my listeners can start thinking about what makes them different, that they can show, and to also start looking at appreciated branding and how that works in their business, yeah, and that works in their business.

Reid:

Yeah, and that's thank you, and I kind of I've been living this for you know I wrote the book and everything and so I'm kind of very steeped in it. So I apologize if I've gone off too much, but I you know there's a lot of value here that I think people can use to save money, be more efficient in their efforts to gain and gain customers and not just, you know, not just the chasing of transactions to get that one sale. You know, brands are built around multiple sales and it's much easier to keep a current customer than to get a new one. That's much cheaper sales and it's much easier to keep a current customer than to get a new one. That's much cheaper. So that's part of what this is all about.

Reid:

And I would just say that for anybody who wants some help with this, you can go to my site, reidholmescom. You can book a free call. I can talk you through your particular issue if you want, and maybe we can figure out a way to help each other out. I can help you and we can get going on getting your brand more noticed and more cared and more cherished.

Alyssa:

Definitely, and so, if you want to learn more about Reed's work, check out his book Appreciated Branding Transform your Brand from Ignored to Irreplaceable. You can also download a free chapter by going to Reid's website. It's linked in the show notes of this episode as well. So, yeah, thank you again, reid, and thank you guys for listening today. I hope you found this episode as helpful as I did, and I'll catch you next time on another brilliant idea. Thanks for hanging out with us.

Reid:

Thank you, Alyssa, for having me.

Alyssa:

Thanks, thanks for tuning into this episode of Brilliant Ideas. If you love the show, be sure to leave a review and follow me on Instagram for even more insider tips and inspiration. Ready to bring your next big, brilliant idea to life? Visit AlyssaVelsercom for resources, guidance and everything you need to start creating something amazing.