Tag Archives for " brand design "

1 Is the term “inspiring bank” an oxymoron?

It’s interesting, where people find business inspiration. For some, it’s the pages of Forbes or biographies of big-name entrepreneurs. For others it’s an impressive P&L statement. For me it’s the bookstore, the ski slopes, or the golf course.

old-bankThe bank is definitely not where I would look for inspiration.

Banks are not known for their inspiring environments or groundbreaking business practices. The most exciting thing to ever happen at my bank was the emancipation of the counter pens… They were released from their chains and replaced with crappy logo pens that are now free to take home with just a purchase of a $10,000 15-year Certificate of Deposit.

Nope. The banking industry is the last place I’d look for business inspiration or marketing insight. That is, until I met Ray Davis, the CEO of Umpqua Bank.

business inspiration from the brand insight blog and Umpqua BankTurns out, he’s not inspired by the banking industry either.

According to Davis, the key question driving strategy discussions at Umpqua has been, “How can we get people to drive by three other banks to get to ours?” That question has steered the bank’s team to look outside the financial sector for inspiration. For instance, Umpqua’s brand has been heavily influenced by the retail industry. “Build the branches around interactions, not transactions.”

Umpqua Bank has grown from $140 million in assets in 1995 to $24 billion in assets. Today it has 350 stores in three states, but perhaps more importantly for the brand, Umpqua has been included in Fortune Magazine’s list of 100 best places to work — eight years in a row!

Bankers and banking consultants from all over the world visit the Umpqua headquarters in Portland and the San Francisco branch to see what they’re doing and how they’re doing it. And what’s even more impressive is that executives in completely different industries are also looking to Umpqua for inspiration.

Turns out, we really can learn from a bank when it comes to branding.

So what’s behind it? What’s turned this small town brand into one of the fastest growing banks in the nation?

inspiring bank brand insight blog post by BNBranding a bend, oregon advertising agency“Umpqua started to take off once we realized what business we’re really in,” Davis said. “I don’t believe we’re in the banking industry. We’re in the retail services business.”

When Davis applied for the job at Umpqua he warned the Board of Directors that he was going to throw out all the old conventions of the banking industry and start something completely different. Because he believed they couldn’t compete against the big guys in any conventional way.

“Banking products are a commodity,” Davis said. “You can’t differentiate yourself that way. The big guys are just going to copy any good new product we come up with. But they can’t copy the way we deliver the service. They can’t copy our experience.”

For that, he borrowed ideas from two great retailers… Nordstrom and Starbucks. Umpqua stores look more like the lobby of a stylish boutique hotel than they do a bank. You can settle into a comfortable leather chair and read all the leading business publications. Have a hot cup of their Umpqua blend coffee. Check your e-mail or surf the web. Listen to their own brand of music and maybe even make a deposit or open a new account. Who knows.

It’s a dramatic leap when you compare that experience to the cold, marble standards of the banking industry.

Clearly, Davis knows how to execute. He doesn’t talk about “execution” per se, but he obviously has the discipline to match the vision. He’s knows how to motivate and how to manage an organization through dramatic changes. And he’s built a corporate culture that aligns with the brand promise.

2014.10.17_Umpqua_BankHere are some of the things Davis has successfully implemented and some reasons why his bank is now on my inspiration radar…

• Random acts of kindness: Local Umpqua teams just do good stuff, like buying coffee for everyone who walks into a neighboring Starbucks. They don’t have to ask permission.

• They get their customer service training from Ritz Carlton.

• Every Umpqua employee gets a full week of paid leave to devote to a local charity. That’s 40 hours x 1800 employees! Any other banker would do the math and say it’s too costly. Davis says it pays off 100 fold.

• They have their own blend of coffee. Shouldn’t every great brand have its own blend of gourmet coffee?

• Proceeds from Davis’ book “Leading for Growth. How Umpqua Bank Got Cool And Created A Culture of Greatness”go to charity.

• They invented a way to measure customer satisfaction. As Fast Company Magazine put it: Umpqua Bank has a rigorous service culture where every branch and each employee gets measured on how well they deliver on what they call “return on quality.” Our research division, BNResearch, handles that kind of work for another innovative, billion-dollar company in an even less glamourous industry… veterinary medicine.

• They embrace design as a strategic advantage. At Umpqua branches, everything looks good, feels good, and even smells good! It’s the polar opposite of a crusty old bank. It’s a pleasing environment, which makes an unpleasant chore much nicer.

• Davis GETS IT! He knows, intuitively, that his brand is connected to their corporate culture. “Banking executives always ask, ‘How do you get your people to do that?’ It’s the culture we’ve built over the last 10 years. It doesn’t just happen. You don’t wake up one day and say, gee, look at this great culture we’ve got here. Our culture is our single biggest asset, hands down.”

Umpqua-bank-interactive• He’s a great communicator. Davis doesn’t use banking stats to motivate and persuade. He uses stories, analogies and real world examples.

• He embraces the idea of a big hairy audacious goal. In fact, everyone answers the phone “Thank you for calling Umpqua Bank, the world’s greatest bank.”

So the next time I’m looking for inspiration, maybe I’ll skip my usual haunts and head down to the bank for a cup of coffee.

For more inspiration, try THIS post.

For inspiration regarding your own marketing efforts, call me at BNBranding.

 

3 When Branding outpaces the Brand. And vice versa.

First of all, let me address the common confusion around the two “B” words in this article’s headline. The verb “branding” is often mistakenly associated with logo design. You’ll hear someone say, “Oh, we’re going through a complete re-branding exercise right now,” which in reality is nothing more than a refresh of the logo.

Branding is much more than that. Branding refers to everything that’s done inside the company — and outside — that influences the perception of the brand. If you redesign the product, that’s branding. If you engineer a new manufacturing process that gets the product to market faster, that’s branding. Choosing the right team of people, the right location, the right distributors, the right sponsorships… it all has an impact on your brand.

So branding is not the exclusive domain of the marketing department. It’s not even the domain of your employees… consumers, vendors and partners often do the branding for you, in the form of tweets, posts and good old-fashioned word of mouth.

For this post I’d like to focus one small but crucial aspect of branding: Design. (Yes, art does have a place in the business world!)

nest-thermostat-11There’s no denying that design can make or break a company. Just look at what NEST has done… Started in 2010 with simple, brilliant designs of everyday products and sold for $3.2 billion last January producing a 20x return for its investors.

And yet the simple brilliance of a great product designer, the flair of a graphic artists, the effect of an illustrator, and the poetic power of a great copywriter is often overlooked in favor of finance guys and programmers.

The work of these commercial artists is ridiculously undervalued in the corporate world. Probably because it’s part of a completely irrational, subjective realm that many data-driven executives are not comfortable with. There’s too much intuition and blind trust involved. (You can’t show ’em charts and graphs that prove the new design will work. And let’s face it, evaluating art is not exactly in the wheelhouse of most business owners or C-level execs.)

So what happens, most of the time, is the design lags behind the brand. While the business is moving quickly forward, the brand identity, packaging and advertising get stuck in the past. Then the managers, in an after-thought, say gee, maybe we should re-do our logo. (Whereas with NEST, design was an integral part of the brand from the very beginning. It’s no accident that the founders of NEST worked at Apple.)

tazo-23 smOccasionally, when there’s a really great design firm or ad agency at work, you’ll find design that outpaces the brand. Here’s an example:

When Steve Smith first started Tazo Tea he approached designer Steve Sandstrom and copywriter Steve Sandoz to do some “branding.” (i.e. the usual name, logo and package design exercise for a new product line.) But when that creative team was done, Smith realized something… “Wow, this is really nice work. I think I need to start making better tea.”

The tea guru could envision the success of the new packaging, but not with the product as it existed at the time. The branding had outraced his product.

So the owner of Tazo did what all enlightened business owners do… he followed the lead of his design team and started making a better product. He made sure his tea was in line with his brand identity.

That identity was a brave departure from anything else in the tea market at the time. It was outlandish. And yes, it was completely fictional. And yet, it helped make TAZO the #1 selling brand of tea in the country. They nailed it on several fronts:

tazo-26 smDifferentiation: The Tazo packaging resembled nothing else.

Mystery: The tone of the brand was mysterious and intriguing.

Creativity: When you’re creating a brand from scratch, it helps to employ a little creative license. Without it, you’d have a boring, fact-based brand that wouldn’t stand out.

Alignment: The product was tweaked to align with the design of the brand.

Smith eventually sold TAZO to Starbucks, and look what’s happened to the packaging. Will it move off the grocery store shelves and maintain market share? Probably. Does it fit into the Starbucks brand design guidelines? Sure.

But most of the art is gone.

02_19_13_Tazo_7