It’s time to Zag
A new book by brand guru Marty Neumeier touts brand building via radical differentiation
As the saying goes, ask 10 people their definition of branding, and you’ll get 10 different answers. In healthcare, however, you might get 20 answers. The confusion around branding in healthcare provider organizations - particularly among leaders and physicians - is widespread: “the brand is the logo, the name, the advertising.” The confusion around what brand means most frequently leads to the misunderstanding and oversimplification of how to apply the strategy of branding. One result is the plea to “tell our story” (also known as the “hidden gem” or “best kept secret” plea). If we only told our story, the assertion goes, then people would know how wonderful we are and our beds would be overflowing with patients, our coffers with revenue. But for branding to be effective over the long haul, there has to be a story to tell, a unique story. And that’s where Marty Neumeier’s new book, Zag, comes in.
One of the best resources for understanding the true nature of brand is Neumeier’s first book, The Brand Gap. His new book focuses on one critical aspect of brand building, radical differentiation. He cites numerous reasons for the need for differentiation, such as clutter in the marketplace and empowered consumers. Of course, in healthcare, this latter point has the potential to truly upset the apple cart. Consumers have more information (the Internet, cable TV, pharmaceutical advertising), more choice (overseas surgery, mini-clinics, Steve Case’s RevolutionHealth.com) and are being asked to foot more of the bill through consumer-driven health plans.
Branding is more relevant today than ever for traditional providers of healthcare, and differentiation is a cornerstone of effective brand building.
In Zag, Neumeier starts by building a case for differentiation, with the first paragraph setting the stage: “An overabundance of look-alike products and me-too services is forcing customers to search for something, anything, to help them separate the winners from the clutter. The solution? When everybody zigs, zag.”
In surveying the landscape of hospital and health-system marketing, the prevalence of “look-alike” and “me-too” strategies, tactics and communications is epidemic. On this initial point alone, Zag proves a must read for those who are leading healthcare provider organizations. Neumeier goes on to provide a 17-step process for “designing your Zag.” While the 17-step process provides a nice guideline, it’s the first part of the book that provides critical content for healthcare leaders. He stresses that companies must move beyond traditional differentiation to radical differentiation.
“Traditional differentiation is an uphill battle in which companies lavish too much effort on too few competitive advantages: the latest feature, a new color, a lower price, a higher speed. Radical differentiation, on the other hand, is about finding a whole new market space you can own and defend…”
In healthcare, traditional differentiation takes the form of patient satisfaction results, a new piece of imaging technology, a specialist’s certification, or another smiling patient testimonial. Neumeier’s cry for radical differentiation is, of course, a cry for innovation, which Neumeier acknowledges just a few sentences prior: “To succeed in a competitive business climate, you have to innovate.”
This message isn’t revolutionary, of course. It fits nicely with other calls for innovation and radical differentiation, such as Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne, Surfing the Edge of Chaos by Richard Pascale, or Purple Cow by Seth Godin. For healthcare leaders, however, the question is how? How can a community hospital in a small town, or a large multi-hospital system in a highly competitive market, create radical differentiation? Can a hospital that’s one of many in a large market truly become a Purple Cow? Not likely, given the services and structure it has that are so similar (by tradition and regulation) to others like it. One answer is to focus not on creating radical differentiation in an entire market (such as a hospital’s PSA), but in more focused markets. Can a hospital create radical differentiation in the market of maternity care? Or executive health? Or joint-replacement surgery? Certainly. And that’s where Zag and other books like it can best be applied to the branding world of health systems, hospitals and clinics.
Now think back to the all-too-common cry to “tell our story.” If your story is the same as everyone else’s, who will listen? The key is understanding that branding is about more than logos and names and advertising. True differentiation comes from innovation. As Neumeier himself says:
“Every brand is built with experiences, whether the brand is a company, product or service, and whether it serves individuals or businesses. The key is to craft those experiences so they create delight for the people who determine the meaning and value of your brand - your customers.”