Striving for Brand Consistency: A Challenge for Web3 Firms
Summary:
The article discusses the importance of brand consistency and the current failure of Web3 companies in achieving it. It stresses the influence of emotions over rational factors when it comes to consumer interaction, as revealed by Gallup research. The analysis of top crypto exchanges exposes a lack of brand consistency due to mixed messages. The article concludes by emphasizing the need for realistic and targeted brand promises and the potential for this to improve longevity in volatile markets. Co-authored by the co-founder of THE RELEVANCE HOUSE, a branding and marketing agency specializing in blockchain and Web3.
The Oscar race for Michelle Yeoh's impressive multiverse-traversing role as Evelyn in one of the past year's biggest hits is proving highly competitive. Likewise, Web3 companies are working to build an 'all-encompassing multiverse', striving to meet all needs at all times. Yet it's evident that people prefer simplicity over complexity. Humans are capable of retaining numerous contradictory pieces of information simultaneously, but we respond more to our basic requirements than to hard facts. A study by Gallup indicates that emotional elements contribute to about 70% of changes in consumer involvement, as opposed to rational elements.
The processing of emotions differs from the processing of facts. Humans better manage their feelings when they perceive them in an understandable and digestible form. Companies that excel in branding recognize this need for continuity and equilibrium, manipulating it for maximum outcomes. Even first-time entrepreneurs understand that the most effective branding techniques are grounded in psychological principles. However, even the most seasoned Web3 companies often fail to tap into the true potential of this understanding. There is a distinction between knowing how to use branding and marketing messages to provoke a specific reaction, and doing so in a way that is coherent and steady enough to create a lasting impact.
Consistency is vital in branding. Inconsistency can destroy a brand. Brands that are household names become familiar through never-ending, timeless repetition. Even when the narration style, pitch, or presentation shift over time, we consistently see the same fundamental messages and promises delivered every single time. This repetition makes the brand recognizable and memorable.
In due course, the brand distinguishes itself from its competition in the minds of the consumers. Instead of ordering a cola-flavored soda, you ask for a Coke. Rather than look up something online, you Google. Seeing an overly accurate picture, you'll question if it's Photoshopped.
The product transcends its physical form and becomes a brand. It’s not just a noun or name - but rather, a verb.
At this stage, the brand establishes unmatched trust and credibility. Picking the product becomes automatic. It's the first choice in every situation due to its reliability, trustworthiness, and demonstrated capacity to deliver.
Consistency extends beyond logos, colors, and suitable wording. It triggers a certain emotional reaction every time. The outcome sought by the brand does not need to be a sale or even generating a lead. It’s about leaving a lasting impression on the mind. The goal is to create a mark, much like a brand in its literal sense. Volvo, for instance, is synonymous with safety due to its consistent safety and security messages.
Nonetheless, Web3 is underperforming in terms of delivering brand consistency. Backed by 25 years of branding experience and a decade in blockchain, it's noticeable that many Web3 firms are failing to maintain brand consistency, a conclusion also revealed in a recent research published by my company on centralized crypto exchanges.
An analysis of the top ten centralized exchanges reveals that the primary messages across all crypto exchanges can be combined into nine primary narratives. Despite the relatively small number of narratives, all exchanges give emotionally conflicting messages to their customers. The research also shows that exchanges with more content generally had less brand consistency.
The impact of these inconsistent messages on users is significant. If a business promotes itself as the most advanced exchange with the most features while also advertising the simplest interface and user experience, neither feature stands out. The mixed message causes confusion and decreases the chance of a user picking the product.
Such conflicts can also generate suspicion. For example, if a business promotes security and compliance, but also advocates for permissionless, open financial systems, the conflicting messages can lose the trust of users who prioritize safety. Similarly, individuals interested in permissionless freedom who perceive "compliance" as intrusive surveillance will also lose trust.
Finally, such conflicts can compromise the return on investment from marketing. If Volvo were to suddenly promote speed along with safety, the brand’s reputation and value could be at risk. Therefore, it is evident that crypto exchanges must improve their branding to create sustainable brands that deliver consistently. By picking a realistic, attractive brand promise directed towards a target audience, a brand can withstand the challenges of volatile markets and increase its chances of outlasting competitors. The article is by German, the co-founder, and chief relevance officer of THE RELEVANCE HOUSE, a blockchain, and Web3-focused branding and marketing agency. This piece was published in association with the Cointelegraph Innovation Circle, a group of innovative thinkers in the blockchain technology industry. Although the opinions provided do not necessarily reflect those of Cointelegraph.
Published At
10/17/2023 1:00:00 PM
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