A Branding Lesson from Home Depot

I used to be an equity analyst. I researched companies, positioned them vis-a-vis their competitors, and crafted narratives to sell them to investors. My coverage included retailers like Lowe’s and Home Depot.

When Home Depot’s new venture, Expo, was in its infancy, I went to check it out for myself. Picture a home furnishings store crossed with an appliance and plumbing showroom. I wandered around the store until a manager approached and asked if I needed help. I did. I was curious about the business and why the store was so quiet. His explanation: “People don’t understand how it works.” Home Depot introduced Expo to the market but provided little guidance and instruction to its customers. Shoppers didn’t know how use it, so they didn’t show up.

A store should be self-explanatory, or it should provide guideposts. Shoppers should understand immediately how it works. (Think of the signage and omnipresent instructions at any IKEA). Home Depot provided none of this when it launched Expo.

Great brand positioning and messaging serve the same purpose: They give direction, tell everyone what to expect, and help your customer understand you vis-à-vis your competitors or adjacent providers.

If brand, as I recently read in Lindsey Pederson’s, Forging an Ironclad Brand, brand is “the relationship you have with your customer,” then communication, transparency, and clarity are essential. Whether for a pitch, website, or marketing campaign, take the point of view of your customer:

• What do they know?

• What do they need?

• How does your product/service solve their problem?

Make it easy for your prospect to understand your brand, and you avoid becoming the next Expo.