Competing on price is a race to the bottom. Build a powerful brand story that connects emotionally with customers instead.
In the world of online retail, pricing strategies can make or break your business. Do you compete on being the cheapest? Or do you differentiate with value?
I believe focusing on your brand story is more powerful for long-term success.
In this article, I’ll share why cultivating a strong brand DNA gives you a competitive advantage that outweighs chasing low prices. You’ll discover:
- The risks of competing on price alone
- How to build an iconic brand story
- Strategies to connect emotionally with customers
- Real-world examples of brands that chose story over price
If you want to stand out in a crowded marketplace, build a loyal fanbase, and command higher profits, read on.
The Perils of Competing on Price
Slashing prices feels like an easy path to more sales. But this tactic often backfires long-term.
Here are some of the pitfalls of competing on price alone:
- It conditions customers to undervalue your products. Customers will grow to expect and demand low prices from your brand. They may refuse to purchase at higher price points in the future.
- It attracts deal-seekers, not loyal brand advocates. One-time bargain hunters likely won’t become repeat customers. You’ll constantly have to lower prices to keep attracting new deal-seekers.
- It starts a race to the bottom. Competitors will match or undercut your low prices. Profits shrink across the industry. No one wins in the end.
- It indicates a lack of differentiation. Customers choose solely based on price because your brand lacks a unique identity in the market.
- It limits future price flexibility. Raising prices in the future risks customer backlash and loyalty erosion. Your hands become tied.
While competitive or discount pricing has its occasional place, I personally believe making it your long-term strategy is playing with fire.
The Power of Brand Storytelling
The strongest brands in the world don’t win on price. They win through their story.
Crafting a compelling origin story and brand mythology is how you make an emotional connection with customers. It taps into their identity and aspirations.
Here are some ways a powerful brand story differentiate you:
- It builds an emotional bond. Customers don’t just buy your product or service – they buy into your ideals and mission.
- It fosters brand loyalty. Customers who connect with your origin story are more likely to actively promote and defend your brand.
- It commands premium pricing. Customers will pay more for a product attached to an iconic brand identity and set of values.
- It sets you apart. In a sea of competitors, your brand story makes you memorable and distinct.
- It inspires word-of-mouth. People naturally share and discuss stories. A great brand narrative fuels organic advocacy.
The role of brand storytelling is sometimes overlooked or undervalued. But in many cases, it’s the single most important marketing asset.
How to Craft Your Brand Story
So what makes a compelling brand story? Here are some guidelines:
Tell an Origin Story
- How did the company get started?
- What motivated the founders?
- What hardships or challenges did they overcome?
Spotlight Your Values
- What principles or beliefs guide the brand?
- How do you aim to make the world better?
Share Your Vision
- What future are you working towards for customers and the world?
- How will you get there?
Highlight Your Special Sauce
- What’s your “secret ingredient” or unfair advantage?
- Why do customers choose you over competitors?
Use Storytelling Techniques
- Craft interesting narratives people want to retell.
- Use metaphors, vivid details, humor, conflict and resolution.
- Tie into cultural trends and current events when you can.
Make it Relatable
- Help customers see themselves in your story.
- Tap into universal human truths, motivations and emotions.
Keep It Simple
- Filter your story down to its essence.
- Avoid overly complex or technical narratives.
- Use language a child could understand.
Be Consistent
- The details in your origin story shouldn’t change over time.
- Customers trust and latch onto a stable, consistent narrative.
Leverage All Channels
- Incorporate your brand story into all marketing – think website, packaging, ads, email, social posts, etc.
- Look for creative ways to showcase different aspects.
By taking the time to develop your brand story and weave it into all customer touchpoints, you can connect with shoppers on a deeper level than price points can ever achieve.
Brand Story Examples
Let’s look at some real-world brand stories and what makes them so powerful. Analyze what emotions and connections they spark with customers.
TOMS Shoes
TOMS Shoes gained overnight success not just for their trendy designs, but by tapping into customers’ desire to help others. Founder Blake Mycoskie modeled the brand after Argentina’s alpargata shoes. For every pair of TOMS sold, he promised to donate a pair to children in need.
This humanitarian origin story enabled TOMS to command higher prices. And it sparked viral word-of-mouth advocacy from customers who wanted to be part of the mission.
Dove
For decades, soap brands portrayed unrealistic beauty standards in advertising – mostly thin models with an unrealistic, overly airbrushed look. Dove’s brand story flipped this narrative on its head.
Their campaign for “Real Beauty” celebrated inclusivity in all shapes, sizes, ages and ethnicities. This story empowered women who didn’t see themselves in other beauty brands. It created a deep emotional connection with customers.
Patagonia
Outdoor apparel company Patagonia centers its brand story around environmental activism and corporate responsibility.
Founder Yvon Chouinard calls Patagonia the “activist company” – one that prioritizes the planet over profits. This mission resonates with eco-conscious customers who want to align with brands fighting to protect the environment.
Airbnb
Airbnb’s founders needed money to pay rent, so they inflated air mattresses in their apartment and rented them out. This humble origin story of scraping by to make ends meet is relatable to many.
And Airbnb’s ongoing brand story still focuses on the universal human need for connection. Their platform provides belonging anywhere in the world.
As you build your own brand story, study other successful examples for inspiration. Look for narratives that tap into emotions we can all relate to on some level.
Tips for Integrating Your Brand Story
Now that you’ve defined your unique brand story, it’s time to strategically integrate it across all touchpoints. Here are some tips:
Website
- Share your origin story prominently on the About page.
- Include brand mission and values on the Contact or FAQ pages.
- Create blog posts elaborating on different aspects of your brand narrative.
Product Packaging
- Print your founding story or core brand beliefs on labels or sleeves.
- Use symbolic visuals that represent your origin.
Email Marketing
- Feature different chapters of your brand story in email newsletters.
- Tie into holidays or cultural events relevant to your narrative.
Social Media
- Dedicate a pinned tweet to describing your brand ethos.
- Share “on this day” posts that celebrate milestones in your origin story.
- Post behind-the-scenes photos of employees embodying your values.
Paid Ads
- Test copy and creatives that highlight your founding principles.
- Run video ads telling bite-sized versions of your brand background.
Get creative and identify ways to naturally insert your brand narrative across platforms. The more consistently customers see, hear and interact with your story, the stronger the emotional resonance will become.
Key Takeaways
Competing on price is an endless race that erodes profitability and blends you in with cut-rate competitors. The most iconic brands win through the power of storytelling that taps into identity and forges an emotional bond.
Here are a few key points to remember:
- Cultivate a compelling origin story and brand values that set you apart.
- Use vivid storytelling techniques and emotive language.
- Align with cultural trends and customer motivations.
- Weave your narrative consistently across all touchpoints.
- Analyze competitors for inspiration.
The role of price fades away when customers feel connected to what your brand represents. Take the time to nurture your unique story – it’s your ultimate competitive advantage.
Focus on fostering a community united by your ethos, not dividing it over dollars and cents. Build a brand founded on meaning and you’ll build customers for life.