Content
- What is a brand contract?
- Why is a brand contract necessary?
- Principles of a brand contract
- How to create a brand contract?
What is a brand contract?
A brand contract is a system of obligations that a brand takes on towards its customers. It is an important element of a strategic approach to brand management. Unlike visual elements (such as logos and color schemes) and semantic characteristics (such as mission and values), a brand contract includes specific actions and promises that the company provides to its customers. Examples of such promises may include safeguarding personal data, reducing paper and plastic usage, and creating open kitchens in restaurants.
The brand contract serves as a bridge between abstract values and real actions, helping to form a coherent and consistent image of the brand in the eyes of consumers.
Why is a brand contract necessary?
Although the brand contract is less known than elements such as the mission or core values of a company, its significance cannot be underestimated. This document helps to transform the abstract values of a brand into concrete actions, which in turn assists both employees and management of the company. It serves as a foundation for understanding the direction in which to develop the product, how to effectively engage with customers, and what messages to convey in communications.
Examples of the transition from brand associations to a brand contract can be seen in the context of news outlets. For instance:
- Brand associations: providing useful information.
- Brand contract: selecting news that helps the audience solve their problems.
- Brand associations: interesting reading.
- Brand contract: writing accessibly and simply, touching on meaningful topics.
Principles of a brand contract
There are four key principles to keep in mind when drafting a brand contract:
- Customer orientation: it is important to view the brand contract from the consumer's perspective, determining what benefits they will receive.
- Translating promises into quality standards: this aspect is particularly important for companies planning to sell franchises, as it is easier to ensure compliance with standards.
- Fulfillment of promises: it is necessary to monitor compliance with standards and analyze errors for correction.
- Updating promises: it is important to regularly review the brand contract and adapt it when necessary.
How to create a brand contract?
Creating a brand contract is often part of a broader branding or rebranding effort. To draft it, companies should follow several steps:
- Market and audience research: understanding customer needs and the problems the product solves.
- Updating brand values: reviewing or developing values that will be communicated.
- Team involvement: engaging employees in collaboratively developing values and communication principles.
- Studying the brand's interaction with customers: describing all communication channels and creating a customer journey map.
- Formulating the brand contract: clearly describing the terms and promises that the brand provides to its customers.
- Implementing the brand contract: writing quality standards and monitoring their compliance at all levels.
Creating an effective brand contract requires the involvement of various specialists, such as creators, brand managers, and designers. Therefore, it is recommended to work on its development with the help of experts in the field.