The Santa Brand

Right now, many of us are taking part in those annual post-holiday traditions of boxing up decorations, returning ill-advised gifts, and vowing to start the New Year committed to gaining back that belt notch lost in a sea of cookies and candy. But as I reflect upon the Christmas season, I realized something.

Santa Claus has absolutely nailed it when it comes to branding.

Think about it. Santa Claus is the best brand. No one can touch him. While behemoths of business like McDonalds and Pizza Hut have gone through identity crises recently, Santa Claus has remained a steady, reliable, positive and universally admired brand for hundreds of years. His brand is international too. As several franchise brands try to crack the formula for global expansion success, Santa Claus is an established worldwide phenomenon.

So, what can we learn from Santa?

Well, you don’t need to hop down your customers’ chimneys or be able to see them when they’re sleeping in order to crack Santa’s branding code – in fact, I’d highly recommend against breaking and entering or night stalking. Here are four reasons why the Santa brand works:

1. Santa empowers his “franchisees” with a feeling of ownership

Santa Claus is not real. I apologize to any children reading, but I assume a preteen reading an online publication devoted to franchising is just as much of a non-existent entity. (If there is a kid reading this, then I have some development guys that would love to talk to you, you multi-unit zee of the future.) The Santa Claus narrative is purely a collaborative effort of the “franchisees” – me, you, Hollywood writers, Christmas card makers, everyone. We all have the ability to describe and present Santa Claus in our own unique fashion. That feeling of ownership helps to drive a positive narrative. We can all buy in on presenting Santa as caring, giving, and the essence of pure happiness. Boy, wouldn’t you invest a lot to have customers describe your brand that way?

Make your franchisees feel like they are a co-author in the brand’s story and you’ll see an increase in validation.

2. Santa is the original “big data” collector

“What do you want?” That’s how Santa greets each boy and girl that hops up on his knee after their parents have waited the length of the movie Titanic to see him at the mall. That’s been Santa’s way of determining guest satisfaction and gaining customer feedback for years. It sounds so simple. But in franchising and any business, there is so much power in dropping your preconceived idea of how your brand is perceived and directly asking the consumer what exactly they want – and then delivering it. Consumer attitudes change constantly and strategically timed feedback is key. Little Timmy may have wanted a Teddy Ruxpin doll at six years old but if Santa didn’t check in annually and brought him a Teddy Ruxpin at 11, when Timmy instead wanted the Starting Lineup USA Basketball “Dream Team” action figure set, well then he’d be dealing with some low customer satisfaction.

Find as many ways to gain direct feedback from your customers as possible, and adjust to their changing needs and desires.

3. Santa has established expectations for levels of luxury

With Santa, the cost of his goods and service is good behavior, and in order to receive the gifts higher up on the wish list, your behavior has to be even more and more pristine. Santa has tapped into the philosophy of a luxury brand in that regard. What child isn’t willing to do a few more chores, talk back less, and be nice to their siblings for the reward of a shiny new bike they can brag to friends about? “Yup – I got this beauty right here because I was a good boy all year long. It wasn’t easy, but hey, it’s worth it.” (Of course, if the consumer demands something patently ridiculous – like an Official Red Ryder Carbine-Action Two-Hundred-Shot Range Model Air Rifle – well, then Santa has the personal responsibility to explain the negative implications and potential optical damage that could result.)

Don’t undervalue your product. Create ways to enhance the product and/or the experience to increase customer spending.

4. Santa does an LTO better than anyone

How long does the typical limited time offer last at a QSR franchise restaurant? Two, three months? Santa’s LTO lasts one day. Santa harnesses the anticipation and buzz that can be generated by giving away something special in a very short period of time better than anyone else. Just like the McRib, Santa builds excitement leading up to his arrival, and there is a letdown when he’s gone.

Be willing to inject some life into your brand and increase awareness by going big with a very limited campaign or promotion.

Santa only visits if you’re sleeping, but if you wake up and take some of his branding lessons to heart and apply them to your franchise, you can be celebrating a much more lucrative 2016 next holiday season.